Applications — San Jose City Council, November 29, 2022

Submit Date: Nov 07, 2022
First Name Last Name
Email Address
Street Address Suite or Apt
City State Postal Code
Primary Phone Alternate Phone

CITY OF SAN JOSE, CALIFORNIA
Boards and Commissions Application
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Please note, applications are continuously accepted to the City of San Jose Boards and Commissions. The Board or Commission you select may or may not indicate there is a vacancy.

Your application will remain on file for one year from the date of submission. During the year, your application may be considered for unanticipated vacancies.

Are you a resident of San Jose?
Yes No
What district do you live in? To verify, please click here: https://eservices.sccgov.org/rov/? tab=dt *
District 5
Length of Residency
6 or more years
Which Boards would you like to apply for?
Police and Fire Retirement Plan Board: Submitted
Question applies to Police and Fire Retirement Plan Board,Federated City Employees' Retirement System If not a resident, do you live within 50 miles of San Jose City Hall? Yes No
Sunita Ganapati
Sunita Ganapati

Employer Job Title
Question applies to Police and Fire Retirement Plan Board,Federated City Employees' Retirement System Public members of the Board of Administration of the San Jose Police and Fire Department Retirement Plan or the Federated City Employees Retirement System must live within 50 miles of San Jose City Hall and meet specified eligibility requirements.

Employee members of the Retirement Boards must be active employees who are members of the respective retirement plan. The Police and Fire Department representative must be an employee of the Police or Fire Department respectively. The employee representatives to the Federated Board shall be employed by different departments.

Retiree members of the Retirement Boards must be persons who have retired under the provisions of the respective retirement plan.

Question applies to Police and Fire Retirement Plan Board,Federated City Employees' Retirement System Member Category: *
Public Member
Current Employer Address
Current Employer of Spouse
The Liver Company
Address of Current Employer of Spouse
Spouse's Job Title
Chief Business Officer
If you or your spouse is retired and receiving a pension, please state source of pension.

None

Interests & Experiences
High School, College, Professional, Vocational, or Other Schools Attended. Please include Major or Field of Study, Dates Attended, Degree and Date of Degree.

MBA (Finance Major), The Wharton School, University of Pennsylvania, 1997 Post Graduate Diploma (Management/ Business), Indian Institute of Management, Ahmedabad, 1991 Bachelors of Science (Mathematics - Major) Stella Maris College, Madras, India, 1989 List any position or office held in any governmental agency, civic, or charitable organization including the dates.
1) Member, Citizen’s Parcel Tax Oversight Committee (December 2021-current), Palo Alto Unified School District 2) Founding Circle Member, Neythri, A Global Community of South Asian Professional Women Languages Spoken
English, Hindi, Tamil
Special Awards or Recognitions Received
Institutional Investor Award for best analyst in category - 2002 and 2003 Greenwich Associates best analyst award in 2003 and 2004 Women's Bond Club Annual Award for Rising Star of the financial services industry - 2003 Published research in industry journals and books such as RISK, Handbook of Structured Financial Products
Please state why you want to become a member of this Board or Commission including specific objectives which you would work toward as a member.

After a 25 year career in the private sector, it has been an honor and privilege to be able to serve the community in general and the first responder community in particular. As a current trustee of the Police and Fire Department Retirement Plan, I have been able to directly leverage my experience across investment management, investment research, risk management, and commercial banking, to provide relevant and subject matter advise and oversight to the plan.

Please state any other information which you feel would be useful in reviewing your application
We have been residents of the Santa Clara county since 2005 and have developed deep roots in the South Bay since moving to the Bay area in 2000.

Sunita Ganapati

Do you own property in the City of San José?

Yes

No
If yes, please list the addresses here.

Do you rent property in the City of San José?

Yes

No
If yes, is it a month-to-month lease?

Yes

No
Question applies to multiple boards
Are you currently experiencing homelessness or have you experienced it in the past?

Yes

No
State and local law require that you abstain from participation in decisions that may affect your financial interests, including sources of income, interest in real property, personal finances or investments.

In addition, if appointed, you may be required to fill out a disclosure statement which identifies certain financial interest beginning with the immediate twelve-month period prior to your appointment.

Please review the scope of your
board/commission in Municipal Code Chapter 2.08.

Based on your best judgment, does this
Board or Commission make decisions that may affect sources of income, interests in real property, personal finances or investments of you or your spouse?

Yes

No
If yes, please explain.

Please identify any organizations, associations, corporations, or entities by which you are employed or associated that might be affected by decisions of this Board or Commission, and the positions you hold in these entities.

Question applies to multiple boards
If appointed, you will be required to fill out a disclosure statement, which identifies certain of your financial interests beginning with the immediate twelve-month period prior to your appointment and annually on or before April 1 of each year thereafter. Please confirm that you have read Fair Political Practices Commission (FPPC) Form 700 Reference Pamphlet and agree to file required FPPC Form 700 Statements of Economic Interest, as required by current City Council Conflict of Interest resolution.

Yes

No
Sunita Ganapati
Question applies to multiple boards
Have you ever been required to file a Statement of Economic Interest (Form 700) and failed to do so?

Yes

No
Question applies to multiple boards
If yes, please explain in complete detail.

Question applies to multiple boards
Please confirm that you have reviewed and agree to comply with the San Jose Municipal Code Chapter 12.08 (Prohibition of Gifts), City of San Jose Ethics Policy (City Policy Manual

1.2.1), and City of San Jose Gift Policy (City Policy Manual 1.2.2).

Yes

No
Reference 1 Name
Keb Byers
Reference 1 Address
Reference 1 Email address
Reference 1 Phone
Reference 2 Name
Rosy Cohen
Reference 2 Address
Reference 2 Email address
Reference 2 Phone
Supplemental Questions
Sunita Ganapati
If applicable, have you ever attended or watched a meeting of the Commission(s) to which you are applying?

Yes

No
Would you be available to attend meetings at the scheduled time?

Yes

No
Please describe your experience in serving on a Commission or Board.

I have served on the board of Trustees for the Police and Fire Pension since June 2020 and have found my time very rewarding. Expanding my interest in public service for my local communities, I was accepted by the Palo Alto Unified School District in Dec 2021 to join the Parcel Tax Oversight Committee to oversee the use of funds as promised to voters in the ballot for Measure O (2020). I have served as a voting and non voting member on several senior management committees (investment and risk management) at my two previous employers - Wells Fargo and Lehman Brothers. I regularly presented to the Wells Fargo Board of Directors regarding investment risks, and most recently set up and ran a group to provide enterprise-wide risk reporting and intelligence for the Chief Risk officer and the Risk Committee of the Wells Fargo board.

With over 25 years of cumulative experience in investment research, investment management, and risk management, I believe my skills experience and training are directly relevant for serving on the retirement board.

In the most recent past, as a senior executive in Wells Fargo's Corporate Risk group, I was responsible for independent
oversight of Wells Fargo's own $400B investment portfolio and the asset- liability management risks and processes of the entire balance sheet.

I joined Wells Fargo to manage a
structured credit portfolio in the investment portfolio group after a successful investment research career at Lehman Brothers prestigious Fixed Income group.

While at Lehman, I served many institutional clients
including retirement funds (domestic and international) by advising them on investment ideas and trends in the sectors I covered. I bring gender diversity to the investment and banking fields, an area that continues to be mostly represented by men.

What is your understanding of the purpose of the Commission? It is my understanding that the Police and Fire Department Retirement Plan of San Jose is a defined benefit retirement plan serving the city's retirees (current and future). Like other such plans, investment earnings and contributions (by the city and its' employee participants) are used to provide eligible retirees with defined-benefit pensions. The Board has a fiduciary oversight responsibility to oversee the retirement plan in meeting its goals.

Please list three issues facing the City that you feel the Commission should address.

The Board can help advise the city on 1) Continued ways to nimbly manage asset allocation and investment returns to further bridge the unfunded liability gap (which has improved materially in the past two years) 2) Advise on the use of funds raised through Pension Obligation Bonds 3) Use active
management strategies in the investment portfolio prudently and where there is a material cost-benefit trade-off
Sunita Ganapati
(Optional) Please upload a resume.

Anything else you would like us to know?
Being a woman who has served as a senior executive in large financial institutions, I bring a diverse leadership perspective to not only investment advice, but to the needs of community members.

The
investment community tends to continue to have much less gender diversity and as someone who is unafraid of asking questions and pressing for answers, I value making well thought through and debated decisions.

Retirement Board Questions Only
Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Please list your applicable experience or expertise relevant to public retirement plan administration.
*

Institutional investment experience

Investment management

Banking

Sunita Ganapati
Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Please summarize your qualifications to serve as a member of the Retirement Board? Briefly highlight your skills, training, education, qualifications, experience (licenses and/or certifications) and personal qualities that you will bring to the Board and share with the organization.

In addition to my 2.5 years of serving as a trustee to the San Jose P&F plans, I have extensive experience in capital markets through my eight years as a leading fixed income research analyst (Lehman 1997-2005), eight years as a portfolio manager (Wells Fargo Principal Investing (2005-2013), and as a risk manager with direct oversight over the investment portfolio and Asset-Liability Management risks (2013-2018).

This experience encompassed two major economic cycles (2000 and 2008) and I bring the fortitude to advise and manage through these downturn with thoughtfulness, a long term view on risk- returns, and a maturity that comes with having experiencing down cycles. Through my risk management experience, I bring the qualities of independence and fearlessness to an investment conversation with the objective of a balanced approach to decision making.

Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Please discuss your pension plan and/or investment management and oversight experience including the development of key financial policies.

My investment management experience covers fixed income markets extensively both as a research analyst, portfolio manager, and a risk management professional.

Most recently, during my five years in
risk management, I led a team to author/ present/ approve several policies for overseeing all types of financial risks (interest rate, operational, hedging, capital etc.) at Wells Fargo.

Many of these policies
needed to be approved by the board of Wells Fargo in addition to the senior executive team.

This
experience is directly relevant and contextual for being a board member in a retirement plan.

Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Please describe your understanding of the relationship between the Retirement Board and City Council? The City Administration? Retirement Services staff? Employee bargaining units? Plan participants and beneficiaries?
The retirement board's primary responsibility is to provide arm's length oversight over the retirement plan's goals and execution. In this capacity, it has direct and indirect (through the city council) obligations/ duties and responsibilities to all of the above stakeholders. Examples of the relationship include - i) The city council appoints the Retirement Board members to serves as its advisory body ii) The CIO and CEO and their staff report to the Retirement Board iii) The Retirement Board has representation from Employee units so their voice is well understood iv) The Retirement Board has a fiduciary responsibility to the plan participants and beneficiaries.

Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
What do you perceive as the short and long-term goals of the Retirement Board? Short term goals are to help the investment team have enough liquidity to meet the financial obligation to current retirees, while the long term goal is to bridge the gap in unfunded liabilities. Another short term goal is to carefully manage the portfolio's risks during this periods of market volatility, while taking advantages of long term investment opportunities. Another long term goal of the plan is to ensure that fees paid to investment managers are worthwhile as measured by their outperformance in returns.

Sunita Ganapati
Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Do you believe that the retirement funds that are invested by the retirement boards are public funds? Why or why not?
Public funds directly impact the retirement plan as a significant portion the plan's funding comes from city contributions.

However, once the contributions are made, the retirement funds are no longer public funds and rather exclusively for city employees, who are salaried/ retirement eligible public employees. This is not dissimilar to a private pension defined benefit plan where the retirement plan's funds are separate from its sponsor that maybe a corporation.

That said, the unfunded future obligations of a plan can be considered public funds.

If investment returns are unable to meet these obligations, the city will have to increase its use of public funds to meet these obligations.

This would be a function of the public's interest
in preserving the city's growth and needs for critical services such as first responders.

Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Have you read the report by the City Auditor entitled, “Pension Sustainability: Rising Pension Costs Threaten the City’s Ability to Maintain Service Levels?” This report is available at: https://www.sanjoseca.gov/DocumentCenter/View/3208

Yes

No
Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
If so, how is this report applicable to the work you would do as a Retirement Board Member? The role as a board member is to understand the issues facing the retirement plan as articulated in the report and to provide sound advice to manage these risks.

It will be important to understand the
alternatives laid out in Chapter 6 of the report (Alternatives for a Sustainable Future) and see what the past 10 years have shown (date of report 2010).

Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
How do you ensure that you are maintaining an in-depth and up-to-date knowledge of institutional investing and the capital market environment? I constantly follow the markets both for personal and professional interests. I do this not only by reading relevant news - WSJ, Barrons, but also by following research reports from investment banks and brokers.

Attending seminars and conferences in the Pension plan investing have been another avenue to educate and keep up-to-date.

In addition, I have an active dialogue with other investment professionals through my extensive network.

Early in my career as a research analyst, I have had experience using risk budgeting principles and techniques for institutional investors including pension funds and insurance companies. I co-authored papers relating to these topics. More recently, at Wells Fargo's Principal investing group, these techniques were less used as the objectives as the objective was an absolute spread return buy and hold portfolio.

Sunita Ganapati
Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Please describe your views on the role of asset allocation and provide detail on your recommended asset classes and proportions for pension funds like those serving the employees of the City of San Jose.

A sound and stable asset allocation strategy is essential to managing a retirement fund. A broad mix of assets (equities, fixed income, cash equivalents and alternatives) is necessary to achieve a plan's investment return and risk objectives.

An optimal
asset allocation strategy involves a strategic allocation along with variance for tactical opportunities. A portfolio dominated by equities would serve well in the long term.

Additionally, in an extremely low interest rate
environment such as the one we were in until recently, it is prudent to consider an allocation to such alternatives to reduce the funding gap.

That said, the illiquidity risks in such investments need to be controlled through asset allocation measures. An excessive allocation to alternative investments could add too much risk to the portfolio, and can be "heady" when returns in other asset classes are depressed.

A long term view on returns and board oversight is critical to managing these risks.

Investment manager performance relative to benchmarks drive hiring and termination decisions.

Manager due diligence involves analysis of data and interviews. Consultants can play a role as needed.

Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
What should be included in a pension plan’s statement of investment policies? Please address the roles of trustees, staff, consultants, investment managers and custodians in asset allocation, portfolio structure, manager selection and due diligence, rebalancing, reporting and analysis.

The statement should include among other things the purpose of the plan, who the plan beneficiaries, the funding structure, and the investment objectives as path to accomplishing the purpose.

The trustees have
an arms length fiduciary duty to ensure the plan is operating toward its stated objective. The staff are appointed by the trustees to execute on these objectives. Consultant input can be sought for asset allocation strategies and for evaluating investment managers.

Staff should define policies for manager
evaluation and selection, asset allocation processes and approvals, and for operational management of the plan such as educating retirees, reporting of returns and analysis thereof for both the board and participants.

Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Individuals applying for appointment as public members of the Board are ineligible for appointment to the Board if they meet certain criteria. Please confirm if you meet any of the following criteria:

None Selected
Sunita Ganapati
Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Have you ever been convicted of a misdemeanor within the past five years or a felony within the past ten years (except for minor traffic offenses that resulted only in a fine)?

Yes

No
Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
If yes, please explain in complete detail. State the nature and approximate date of the conviction, the sentence imposed, whether the sentence has been completed, and any other information you consider relevant.

Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Are you or your firm currently or within the past five years been the subject of any litigation or claims resulting from any investment activity, advice, a fiduciary relationship, or regarding alleged financial improprieties?

Yes

No
Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
If yes, please provide details.

Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Are you or your firm currently or within the past five years been the subject of any investigation or disciplinary action by any governmental and/or regulatory body (SEC, NASD, states Attorney General or Insurance Commissioner, etc.)?

Yes

No
Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
If yes, please provide details.

Verification
By checking the box below, you agree with the following statement.

I agree that all of the information contained in my responses to the questions on this application are true and accurate to the best of my knowledge. I further agree that, by checking the box below and submitting this application, online or otherwise, I am affixing my digital signature to this form as of the date submitted.

I Agree
*
Sunita Ganapati
Submit Date: Sep 01, 2022
First Name Last Name
Email Address
Street Address Suite or Apt
City State Postal Code
Primary Phone Alternate Phone

Your application will remain on file for one year from the date of submission. During the year, your application may be considered for unanticipated vacancies.

Are you a resident of San Jose?
Yes No
What district do you live in? To verify, please click here: https://eservices.sccgov.org/rov/? tab=dt *
N/A - Retirement Board Applicants Only
Length of Residency
Less than 1 year
Which Boards would you like to apply for?
Police and Fire Retirement Plan Board: Submitted
Question applies to multiple boards
Question applies to Police and Fire Retirement Plan Board,Federated City Employees' Retirement System If not a resident, do you live within 50 miles of San Jose City Hall? Yes No
Eswar Menon
Eswar Menon Page 1 of 10

Employer
Job Title
Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Public members of the Board of Administration of the San Jose Police and Fire Department Retirement Plan or the Federated City Employees Retirement System must live within 50 miles of San Jose City Hall and meet specified eligibility requirements.

Retiree members of the Retirement Boards must be persons who have retired under the provisions of the respective retirement plan.

Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Member Category:
*

Public Member

Current Employer Address
Current Employer of Spouse
N/A
Address of Current Employer of Spouse
Spouse's Job Title
N/A
If you or your spouse is retired and receiving a pension, please state source of pension.

N/A
Demographics (Optional)
The demographic information you choose to provide is

VOLUNTARY
and

OPTIONAL
. This
information will be kept separate from your application and will not be used for evaluating applications or making appointments. The City of San José will use this information to solely conduct research and compile statistical reports regarding the composition of its Board and Commission applicants.

Self Employed
Investor
Eswar Menon

Page 2 of 10 ends

Interests & Experiences
High School, College, Professional, Vocational, or Other Schools Attended. Please include Major or Field of Study, Dates Attended, Degree and Date of Degree.

University of Chicago- MBA in Finance and Marketing: 1993-1995 University of California, Santa Barbara- MS Electrical & Computer Engineering: 1986-1989 Indian Institute of Technology, Madras- BTech Electrical Engineering: 1982-1986 PSBB High School, Madras: 1978-1982 List any position or office held in any governmental agency, civic, or charitable organization including the dates.

Languages Spoken
English, Hindi, Tamil, Malayalam
Special Awards or Recognitions Received
Top 100 Mutual Fund Manager- Loomis Sayles International Fund MBA Summa Cum Laude- University of Chicago Institute Colors- IIT Madras
Please state why you want to become a member of this Board or Commission including specific objectives which you would work toward as a member.

I have been a Trustee for one four-year term and Chair of the Investment Committee and Vice-Chair of the JPC for about two years. We have made substantial progress in bringing the Plan to a better position in terms of Performance of the Investment Team and the Performance of the Fund. I hope to continue my work over the last four years to improve the performance of the Fund and its funding ratio.

Please state any other information which you feel would be useful in reviewing your application
Extensive experience as a portfolio manager- 27 years with significant career outperformance over respective benchmarks. Deep knowledge of both public and private capital markets. Experience and knowledge of asset allocation, importance of long-term focus while investing, ability to identify the difference between alpha generation Vs beta investing.

Do you own property in the City of San José?
Yes No
Eswar Menon Page 3 of 10

If yes, please list the addresses here.

Do you rent property in the City of San José?

Yes

No
If yes, is it a month-to-month lease?

Yes

No
Question applies to multiple boards
Are you currently experiencing homelessness or have you experienced it in the past?

Yes

Please review the scope of your
board/commission in Municipal Code Chapter 2.08.

Based on your best judgment, does this
Board or Commission make decisions that may affect sources of income, interests in real property, personal finances or investments of you or your spouse?

Yes

No
If yes, please explain.

Yes

No
Question applies to multiple boards
Have you ever been required to file a Statement of Economic Interest (Form 700) and failed to do so?

Yes

No
Eswar Menon

Page 4 of 10 ends

Question applies to multiple boards
If yes, please explain in complete detail.

1.2.1), and City of San Jose Gift Policy (City Policy Manual 1.2.2).

Yes

No
Reference 1 Name
Jeff Romrell
Reference 1 Address
Reference 1 Email address
Reference 1 Phone
Reference 2 Name
Glow Nair
Reference 2 Address
Reference 2 Email address
Reference 2 Phone
Supplemental Questions
Eswar Menon

Page 5 of 10 ends

If applicable, have you ever attended or watched a meeting of the Commission(s) to which you are applying?

Yes

No
Would you be available to attend meetings at the scheduled time?

Yes

No
Please describe your experience in serving on a Commission or Board.

I have been a Trustee of the Police & Fire Retirement Fund for four years.

I have extensive experience in the asset management area having managed assets as a portfolio manager at several large firms- Nicholas Applegate (now part of Allianz), Loomis Sayles, WHV Investment Management and Geneva Advisors. I have excellent knowledge of both public and private capital markets, and have been a skilled and adept investor for 27 years. Currently I am the Founder & CIO of Harper Capital Management and an Advisor to Sameeksha Capital.

What is your understanding of the purpose of the Commission? The Board's role is to oversee the investment group and the management of the retirement funds.

Please list three issues facing the City that you feel the Commission should address.

The ability to generate long-term returns in order to support current and future retirees. Protecting investment capital. Investing in a way that is in line with the values of our community.

Eswar Menon

Page 6 of 10 ends

(Optional) Please upload a resume.

Anything else you would like us to know?
We have come far during my first term as Trustee and hope to drive more improvements during a second term (if appointed). Agenda items that I expect to be actively involved in would include 1) implement best investment practices 2) implementing plans to adjust plan to changing profile of plan members 3) Work on getting to 100% funded status
Retirement Board Questions Only
Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Please list your applicable experience or expertise relevant to public retirement plan administration.
*

Institutional investment experience

Investment management

Trustee, Board of San Jose Police & Fire Retirement Fund Chair, Investment Committee, San Jose P&F Vice-Chair, JPC San Jose P&F Series 65 License Founder & CIO, Harper Capital Management LLC Advisor- Sameeksha Capital 2016-present Portfolio Manager- Geneva Advisors 2014-2016 Portfolio Manager- WHV Investment Management 2010-2013 Portfolio Manager- Denahi Global/GCA 2005-2010 Portfolio Manager- Loomis Sayles- 1999-2004 Portfolio Manager- Nicholas Applegate Capital Management- 1995-1999
Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Please discuss your pension plan and/or investment management and oversight experience including the development of key financial policies.

Twenty seven years experience as a portfolio manager of equity and balanced funds.

Trustee, Board of
San Jose Police & Fire Retirement Fund Chair, Investment Committee, San Jose P&F Vice-Chair, JPC San Jose P&F
Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Please describe your understanding of the relationship between the Retirement Board and City Council? The City Administration? Retirement Services staff? Employee bargaining units? Plan participants and beneficiaries?
The Retirement Board public members are appointed by the City Council and has to work closely with the City Administration. The Retirement Board manages funds on behalf of the employees and oversees the performance of the Retirement Services staff.

Eswar Menon

Page 7 of 10 ends

Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
What do you perceive as the short and long-term goals of the Retirement Board? The Retirement Fund has to be cognizant of liquidity in the short term and performance (to meet pension obligations) in the long term. The Board has to monitor the performance of the Fund relative to these goals and make the right decisions are being made in terms of investments and personnel.

Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Do you believe that the retirement funds that are invested by the retirement boards are public funds? Why or why not?
Overall-Yes- While the funds are managed to meet pension obligations of employees, it is also the case the funds are generated from taxation of the public.

Yes

No
Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
If so, how is this report applicable to the work you would do as a Retirement Board Member? As a member of the board, I would have responsibility for the management, administration and control of the plan. This report (from 2010) shows the various issues that have resulted in a significant unfunded liability for the plans. Many of the issues from 2010 remain and these have to be addressed to ensure the long-term viability of the plans so that retired employees do not face any risk in the future nor does the city and its citizens face greater contributions which take away from money for other city services. Key issues are investment returns, employee/city contributions, salary that determines pension, determining years of service, stability of pension formula (avoid adjusting to enhance pension during favorable times for the fund) and yearly inflation adjustment.

Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
How do you ensure that you are maintaining an in-depth and up-to-date knowledge of institutional investing and the capital market environment? In my current role as a Trustee and Investment Committee Chair, I attend conferences and meet with industry experts. In my roles at Harper Capital Management and Sameeksha Capital, I keep abreast of the capital markets.

Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Given the current status of the capital markets, where do you see opportunities to increase return and reduce risk in the pension portfolios? What is your experience with risk budgeting?
We have increased allocation to private markets at this years Strategic Asset Allocation review. We also reduced duration since we were concerned about the risk of rates rising. Any deep drawdown (S&P less than 3400) could be an opportunity to add to Equity exposure. I have also advised Investment Staff to explore hedging tail risk at periods when market valuations are substantially above historic norms. We also need to work on the increasing need to pay retirees and how portfolio construction should change as move forward.

Eswar Menon

Page 8 of 10 ends

Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Please describe your views on the role of asset allocation and provide detail on your recommended asset classes and proportions for pension funds like those serving the employees of the City of San Jose.

Asset allocation is very important for pension funds. The goal of asset allocation is to both diversify and enhance returns. The Fund should take a longer term view to take advantage of the higher expected returns when investing in more illiquid assets and in assets that are depressed in valuation on a temporary basis. .

Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
How would you evaluate an investment manager? When would you terminate an investment manager? How should due manager diligence be conducted? Look at process, consistency of application of process, long-term returns, understand periods of underperformance and how a manager explains this. I would terminate for the following reasons:
-
process drift - unsatisfactory explanation of returns - questionable personal behavior - changes in Fund's asset allocation
Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
What should be included in a pension plan’s statement of investment policies? Please address the roles of trustees, staff, consultants, investment managers and custodians in asset allocation, portfolio structure, manager selection and due diligence, rebalancing, reporting and analysis.

Custodians: reporting, capacity to handle asset allocation decisions investment managers- hewing to mandate of Fund consultants- evaluate managers, feedback on asset allocation staff- work with consultants in evaluating managers and asset allocation, manage liquidity trustees- evaluate staff performance relative to mandate, selection of managers and consultants Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Individuals applying for appointment as public members of the Board are ineligible for appointment to the Board if they meet certain criteria. Please confirm if you meet any of the following criteria:

None Selected
Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Have you ever been convicted of a misdemeanor within the past five years or a felony within the past ten years (except for minor traffic offenses that resulted only in a fine)?

Yes

No
Eswar Menon

Page 9 of 10 ends

Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
If yes, please explain in complete detail. State the nature and approximate date of the conviction, the sentence imposed, whether the sentence has been completed, and any other information you consider relevant.

Yes

No
Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
If yes, please provide details.

Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Are you or your firm currently or within the past five years been the subject of any investigation or disciplinary action by any governmental and/or regulatory body (SEC, NASD, states Attorney General or Insurance Commissioner, etc.)?

Yes

No
Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
If yes, please provide details.

Verification
By checking the box below, you agree with the following statement.

I Agree
*
Eswar Menon

Page 10 of 10 ends

Submit Date: Nov 03, 2022
First Name Last Name
Email Address
Street Address Suite or Apt
Primary Phone Alternate Phone

Your application will remain on file for one year from the date of submission. During the year, your application may be considered for unanticipated vacancies.

Are you a resident of San Jose?
Yes No
What district do you live in? To verify, please click here: https://eservices.sccgov.org/rov/? tab=dt *
District 5
Length of Residency
None Selected
Which Boards would you like to apply for?
Police and Fire Retirement Plan Board: Submitted
Question applies to multiple boards
Question applies to Police and Fire Retirement Plan Board,Federated City Employees' Retirement System If not a resident, do you live within 50 miles of San Jose City Hall? Yes No
Howard Lee
Howard Lee

Employer
Job Title
Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Public members of the Board of Administration of the San Jose Police and Fire Department Retirement Plan or the Federated City Employees Retirement System must live within 50 miles of San Jose City Hall and meet specified eligibility requirements.

Retiree members of the Retirement Boards must be persons who have retired under the provisions of the respective retirement plan.

Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Member Category:
*

Public Member

Demographics (Optional)
The demographic information you choose to provide is

VOLUNTARY
and

Weild & Co
Managing Director
Howard Lee
Interests & Experiences
High School, College, Professional, Vocational, or Other Schools Attended. Please include Major or Field of Study, Dates Attended, Degree and Date of Degree.

INSEAD, Fontainebleau, France MBA 1994 Cornell University Ph.D. Electrical Engineering 1989 Cornell University B.S. Electrical Engineering 1982 Smithtown HS East HS degree 1978 List any position or office held in any governmental agency, civic, or charitable organization including the dates.

Trustee at the San Jose Police and Fire Pension Board, March 2020-present US Army Research Labs Fort Monmouth, NJ 1989-1992
Languages Spoken
English, Chinese (intermediate)
Special Awards or Recognitions Received
Please state why you want to become a member of this Board or Commission including specific objectives which you would work toward as a member.

I would like to engage in taking a public service role that combines my expertise in investments and finance with an interest to help and serve others in the community. I take the care of duty as a fiduciary very seriously and will seek to help improve the pension sustainability through increased investment returns coupled with realistic alternatives on cost reductions to be worked through as a member of the team of the Retirement Board. I want to be responsible for looking out for the best interests of the workers and retirees that will rely upon the pension for their retirement security.

Please state any other information which you feel would be useful in reviewing your application
I have served as a Trustee at the San Jose Police and Fire Pension Board since March 2020 Do you own property in the City of San José?
Yes No
Howard Lee

If yes, please list the addresses here.

Do you rent property in the City of San José?

Yes

No
If yes, is it a month-to-month lease?

Yes

No
Question applies to multiple boards
Are you currently experiencing homelessness or have you experienced it in the past?

Yes

Please review the scope of your
board/commission in Municipal Code Chapter 2.08.

Based on your best judgment, does this
Board or Commission make decisions that may affect sources of income, interests in real property, personal finances or investments of you or your spouse?

Yes

No
If yes, please explain.

Yes

No
Question applies to multiple boards
Have you ever been required to file a Statement of Economic Interest (Form 700) and failed to do so?

Yes

No
Howard Lee
Question applies to multiple boards
If yes, please explain in complete detail.

1.2.1), and City of San Jose Gift Policy (City Policy Manual 1.2.2).

Yes

No
Reference 1 Name
Brian Goncher
Reference 1 Address
Reference 1 Email address
Reference 1 Phone
Reference 2 Name
Tom Rota
Reference 2 Address
Reference 2 Email address
Reference 2 Phone
Supplemental Questions
Howard Lee
If applicable, have you ever attended or watched a meeting of the Commission(s) to which you are applying?

Yes

No
Would you be available to attend meetings at the scheduled time?

Yes

No
Please describe your experience in serving on a Commission or Board.

I have served as a Trustee at the San Jose Police and Fire Pension Board since March 2020.

I
have also
served on numerous commercial, for profit boards and have served on the Board of the Palo Alto Little League for 3 years. The board was composed of parents who organized the league, created policies, administered and monitored the safety of the children and the operations of the league.

My experience as a Trustee at the San Jose Police and Fire Pension Board since March 2020 has given me greater insight into the administration of the retirement plan on behalf of its members and beneficiaries.

My skills span from general business operations, finance, to investments. I have 3 years of institutional investment management combined with 13 years of investment management. Training has included both technical and general business and financial areas.

My
education includes a BS and PhD in Electrical Engineering as well as an MBA.

I have been both a direct
investor as a GP as well as a funds investor, where I have been an institutional investor (LP) in various private equity and venture funds. This dual perspective has given me a unique view of investments. My work has enabled me to apply my interests in researching issues, applying disciplined diligence, and making the best decision based on the data and facts. As a result, I have developed an investor mentality with respect to approaching allocation of capital as a fiduciary: an attention to detail and a duty to serve the owner of the capital.

Serving the community has been an interest for me. I have volunteered at local food/soup kitchens and at the Sacred Heart Community Service. I have volunteered as a mentor to an entrepreneurship course at the University of California at Berkeley for the last 4 years. It would be a fantastic opportunity combine my skills that I have developed and my interests to serve in this Retirement Board role.

What is your understanding of the purpose of the Commission? The Retirement Board has the duty to have the sole fiduciary responsibility over the assets of the Plan and to administer the system.

They determine eligibility and benefits for Plan participants and beneficiaries,
set investment policies,
invest the funds in the Plan, and hire/terminate the CEO and CIO of the Retirement Staff.

Please list three issues facing the City that you feel the Commission should address.

The sustainability of the City's pension benefits Reduction of pension costs Reduction of unfunded pension liabilities
Howard Lee
(Optional) Please upload a resume.

Anything else you would like us to know?
I have a strong desire to serve the public using the skills that I have developed.

I have served as a
Trustee at the San Jose Police and Fire Pension Board since March 2020 and would like to continue to serve in that role.

Investment management

Howard Lee
Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Please summarize your qualifications to serve as a member of the Retirement Board? Briefly highlight your skills, training, education, qualifications, experience (licenses and/or certifications) and personal qualities that you will bring to the Board and share with the organization.

My education includes a BS and PhD in Electrical
Engineering as well as an MBA.

I have served as a Trustee at the San Jose Police and Fire Pension Board since March 2020 and am familiar with the investment strategies, actuarial analyses, and overall administration of the plan. I serve
I have been both a direct investor as a GP as well as a funds investor, where I have been an institutional investor (LP) in various private equity and venture funds. This dual perspective has given me a unique view of investment managers. My work has enabled me to apply my interests in researching issues, applying disciplined diligence, and making the best decision based on the data and facts. As a result, I have developed an investor mentality with respect to approaching allocation of capital as a fiduciary: an attention to detail and a duty to serve the owner of the capital. Equally important, I have a strong desire to serve the public using the skills that I have developed.

Currently, in my role as a Trustee at the San Jose Police and Fire Pension Board I am familiar with the strategic asset allocation investment strategies, and approvals of private equity, credit, and venture capital commitments through my service on the Investment Committee and on the Audit Committee.

As an
investor in investment management, I have had the role as a fiduciary to serve the interests of the owner of the capital used for investments. As a GP I have been involved in negotiating the terms of the fund and key financial policies which included management of the fund, investment limitations – term, maximum exposure in a single portfolio company, exclusion of derivatives, investment sector limitations – and the formation of an LP Advisory committee to oversee potential conflict of interest transactions. Quarterly and annual valuation reports were also provided to our investors as a part of the partnership agreement.

As a
funds investor, I have been part of the LP advisory committee that reviewed matters relating to potential conflicts of interests for investments. In particular, the bankruptcy of another large LP co-investor in a fund required substantial oversight on our part to ensure continuity of their capital contributions to the fund. We also required quarterly meetings with the investment manager as part of our financial policies.

The City Council
also appoints a Council representative to the Retirement Board. The Retirement Board has the authority to enter into agreements on behalf of the City for the administration of the retirement plan. The Retirement Board is responsible for the administration and investment of the investment funds which is based upon the investment recommendations of the CIO of the Office of Retirement Services as presented by the CEO. The Office of Retirement Services also provides the Retirement Board with information from the Retirement system and members on eligibility and benefits to enable the Board to carry out its duties concerning retirement, eligibility for benefits of the members. The Board also has joint responsibility to appoint the Retirement Services CEO and CIO. My understanding of the relationship between the Board and Employee bargaining units is that is indirect: The Board can communicate with the plan stakeholders including employees but is not chartered to negotiate with the bargaining units.

The Retirement Board has
the duty to determine eligibility and benefits for Plan participants and beneficiaries.

Howard Lee
Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
What do you perceive as the short and long-term goals of the Retirement Board? The Retirement Board’s short-term goals are the efficient administration and management of the Retirement Plan for employees and retirees. Long-term, the Board’s goals are to protect the best interests of the plan members and beneficiaries that are consistent with the Plan: a sustainable and secure source of retirement income for the members and beneficiaries.

Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Do you believe that the retirement funds that are invested by the retirement boards are public funds? Why or why not?
The retirement funds that are invested by the retirement boards are public funds in the sense that the employees and retirees are or were employed by governmental entities which are in turn funded by taxpayers. There is consequently a duty of care as a fiduciary for retirement boards.

Yes

No
Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
If so, how is this report applicable to the work you would do as a Retirement Board Member? The report, while written in 2010, is very relevant today as it describes a precarious circumstance that faces the City of San Jose and the Retirement Board: the impact of unfunded pension liabilities on the City of San Jose’s operations. As a Retirement Board Member, I would underline sustainability of pension benefits as a top priority. My work would be to deal with 1) the challenge of rising pension costs and their effect on SJ city services, and 2) the growing unfunded liabilities as a team with the other Retirement Board Members. It is critical to understand the historical background of the pension plan shortfall to be able to apply reasoning to possible alternatives and to help providing a solution for all parties.

Ultimately,
the Retirement Board is responsible for looking out for the best interests of the workers and retirees that will rely upon the pension for their retirement security.

Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
How do you ensure that you are maintaining an in-depth and up-to-date knowledge of institutional investing and the capital market environment? In my current work as an institutional investor I am constantly up to date on both the private and public capital markets through analyst research reports and individual research. In addition, I have regular interactions with peers and colleagues in the investment and finance sectors.

Howard Lee
Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Given the current status of the capital markets, where do you see opportunities to increase return and reduce risk in the pension portfolios? What is your experience with risk budgeting?
Obtaining attractive returns in this volatile, high inflation and rising interest rate environment has been challenging and 2023 may bring continued market volatility as the Federal Reserve has already signaled its willingness to increase interest rates in larger increments. Private equity and buyout funds that rely on low cost of capital and the US equity markets would be an asset class I would continue to investigate. In addition, selected emerging markets may also present strong opportunities.

My experience in risk
budgeting has been as a Trustee on the San Jose Pension Board. I also have experience in the monitoring of investments in fund managers and in portfolio companies to identify risks to the asset and the fund itself for our internal reporting and our investment committee.

Asset allocation should be based on managing diversification for plan investment to avoid large losses with considerations for liquidity and driven by attractive risk-return characteristics.

Based on our current
strategic asset allocation at the Pension Board I would maintain the roughly 70/30 split between growth and Low Beta/Other and not rebalance at the moment given the recent interest rate increase and market volatility.

Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Should pension plans like those in San Jose invest in alternative investments such as private equity, commodities, infrastructure or separate account real estate? If so, how? If not, why?
Pension plans should consider investments in private equity and infrastructure as low interest rates may be continue through 2020-2021. Low borrowing costs and disciplined buying will aid Private Equity investments while lower rates will enable development of infrastructure projects in the short term that will ultimately generate stable returns in the 20-25 year time frame.

In my view, separate account real estate
would depend crucially on the developer and manager. If interest rates remain level and GDP growth in the US continues then separate account real estate investments would be reasonable.

Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
How would you evaluate an investment manager? When would you terminate an investment manager? How should due manager diligence be conducted? An investment manager evaluation should be based on the team investment track record, viability of the team for the next 2 funds, investment strategy, and team dynamics. An investment manager should be terminated after poor performance in a single fund or after potentially criminal or questionable behavior that would negatively impact the City of San Jose or the Retirement Plan reputations (“headline risk”), significant changes in management or strategy, and compliance issues . Due diligence should be done comprehensively with great attention to detail to uncover any aspects of the business, team , or investments that are inconsistent with the investment manager provided information or guidance on the team, fund, or investments. Analysis of the investments/assets, strategy, and detailed reference checks are absolutely necessary.

Howard Lee
Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
What should be included in a pension plan’s statement of investment policies? Please address the roles of trustees, staff, consultants, investment managers and custodians in asset allocation, portfolio structure, manager selection and due diligence, rebalancing, reporting and analysis.

A pension plan’s statement of investment policies should include:

Fund Governance Fiduciary Duty-
Trustees, staff, consultants, investment managers, and custodians duty of care Investment Objectives –
To fund the Plan obligations and to achieve risk-adjusted returns greater than market benchmarks.

Investment philosophy and Manager selection and diligence – To achieve alpha. Staff has procedures and conducts diligence (with consultant) on investment manager and makes recommendation to Trustees/Board. Asset Allocation and Portfolio Structure– across broad asset classes including global equity, private equity, global fixed income, private debt, real assets, absolute return, and cash.

Trustees
set long term allocation and Portfolio investment structure and staff fulfills the Trustee/Board allocation plan. Consultants may be able to provide assistance to Staff. Rebalancing – to maintain target allocation ranges. Staff rebalancing with Trustee/Board approval for tactical considerations Diversification – to minimize risk of large losses in the plan Liquidity – to manage cash flows of plan Hiring and terminating Investment managers Reporting and Analysis and Monitoring of Investment Managers – Staff monitoring of Investment Managers and report to Trustees/Board. Allocations can be made by Staff. Use of Derivatives – Investment restrictions – Investment Costs – Valuation of Portfolio – Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Individuals applying for appointment as public members of the Board are ineligible for appointment to the Board if they meet certain criteria. Please confirm if you meet any of the following criteria:

Yes

No
Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
If yes, please provide details.

Howard Lee
Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Are you or your firm currently or within the past five years been the subject of any investigation or disciplinary action by any governmental and/or regulatory body (SEC, NASD, states Attorney General or Insurance Commissioner, etc.)?

Yes

No
Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
If yes, please provide details.

Verification
By checking the box below, you agree with the following statement.

I Agree
*
Howard Lee
Submit Date: Sep 03, 2022
First Name Last Name
Email Address
Street Address Suite or Apt
City State Postal Code
Primary Phone Alternate Phone

Your application will remain on file for one year from the date of submission. During the year, your application may be considered for unanticipated vacancies.

Are you a resident of San Jose?
Yes No
What district do you live in? To verify, please click here: https://eservices.sccgov.org/rov/? tab=dt *
District 1
Length of Residency
None Selected
Which Boards would you like to apply for?
Federated City Employees' Retirement System: Submitted
Question applies to Police and Fire Retirement Plan Board,Federated City Employees' Retirement System If not a resident, do you live within 50 miles of San Jose City Hall? Yes No
Anurag Chandra
Anurag Chandra

Retiree members of the Retirement Boards must be persons who have retired under the provisions of the respective retirement plan.

Question applies to Police and Fire Retirement Plan Board,Federated City Employees' Retirement System Member Category: *
Public Member
Current Employer Address
Current Employer of Spouse
Foundation for College Education
Address of Current Employer of Spouse
Spouse's Job Title
Director of Development
If you or your spouse is retired and receiving a pension, please state source of pension.

Demographics (Optional)
Gresham Partners, LLC Finance
Anurag Chandra

The demographic information you choose to provide is VOLUNTARY and OPTIONAL. This information will be kept separate from your application and will not be used for evaluating applications or making appointments. The City of San José will use this information to solely conduct research and compile statistical reports regarding the composition of its Board and Commission applicants.

Interests & Experiences
High School, College, Professional, Vocational, or Other Schools Attended. Please include Major or Field of Study, Dates Attended, Degree and Date of Degree.

Stanford University '86-'90 (Economics & Political Science) Loyola Law School '92-'95 (Law) List any position or office held in any governmental agency, civic, or charitable organization including the dates.

Menlo-Atherton Little Leauge, Board Member ''10-'15 Upaya Social Impact, Board Member '16 to '22 Languages Spoken
English, Hindi
Special Awards or Recognitions Received
Top 40 under 40 in Silicon Valley, '05 (San Jose Business Journal) Please state why you want to become a member of this Board or Commission including specific objectives which you would work toward as a member.

I would like to continue with a second full term of service as a trustee. Specifically, as Chairman of the Investment Committee I would like to build on the accomplishments over the past 4 years (new investment policy, updated governance structure, improved asset allocation and governance); build an optimal portfolio focused on reduced fees and excellent manager selection (where active managers are the best approach); and optimize alpha to the plan within an acceptable level of risk. Importantly, I would like to continue the good work done thus far on prioritizing the customer satisfaction of retirees with the ORS.

Anurag Chandra

Please state any other information which you feel would be useful in reviewing your application
I believe I have built a good rapport with my fellow board members and committee members. I bring the perspective of 20+ years in PE/VC, an area the CIO has prioritized with the plan's asset allocation model.

I have a keen interest in public policy (having worked in it dating back to college) and am able to look at all issues that come before the board with the interests of all stakeholders in mind. My father in law was instrumental in turning around his union's pension plan during his career. I have always been inspired by his example to use my skills similarly in some small way.

Do you own property in the City of San José?

Yes

No
If yes, please list the addresses here.

Do you rent property in the City of San José?

Yes

No
If yes, is it a month-to-month lease?

Yes

No
Question applies to multiple boards
Are you currently unhoused?

Yes

Please review the scope of your
board/commission in Municipal Code Chapter 2.08.

Based on your best judgment, does this
Board or Commission make decisions that may affect sources of income, interests in real property, personal finances or investments of you or your spouse?

Yes

No
If yes, please explain.

Anurag Chandra
Question applies to multiple boards
If appointed, you will be required to fill out a disclosure statement, which identifies certain of your financial interests beginning with the immediate twelve-month period prior to your appointment and annually on or before April 1 of each year thereafter. Please confirm that you have read Fair Political Practices Commission (FPPC) Form 700 Reference Pamphlet and agree to file required FPPC Form 700 Statements of Economic Interest, as required by current City Council Conflict of Interest resolution.

Yes

No
Question applies to multiple boards
Have you ever been required to file a Statement of Economic Interest (Form 700) and failed to do so?

Yes

No
Question applies to multiple boards
If yes, please explain in complete detail.

1.2.1), and City of San Jose Gift Policy (City Policy Manual 1.2.2).

Yes

No
Reference 1 Name
Prabhu Palani
Reference 1 Address
Reference 1 Email address
Reference 1 Phone
Reference 2 Name
Roberto Pena
Reference 2 Address
Anurag Chandra
Reference 2 Email address
Reference 2 Phone
Supplemental Questions
If applicable, have you ever attended a meeting of the Commission(s) to which you are applying?

Yes

No
Would you be available to attend meetings at the scheduled time?

Yes

No
Please describe your experience in serving on a Commission or Board.

I have served on the Federated Board since Dec '16. I have served on the Federated Investment Committee since Dec '16. I have served on the JP&C since Oct '17 I have served as the Chairman of the Federated Investment Committee since May '18.

Considering your experience and activities in business, labor, School, professional, social,
Commissions, Boards, or other organizations, indicate the experience, training, knowledge and/or skills which qualify you for appointment to the selected commission(s). 20+ years in PE/VC investing (or related activities, like being an executive in private companies). 10+ years in private debt 6 years of Federated trusteeship (see above) service on 10+ boards (dealing with labor, governance, financial, and political risk issues) service on 3 political campaigns 3 years in public policy Over 5 local and nonprofit boards Family who have been union members, leaders, and pension trustees
What is your understanding of the purpose of the Commission? To help the city meet its obligations to its current and future retirees. To provide oversight to ORS in its strategic imperatives (help set them) and day to day operations. To contribute my professional expertise in making optimal investment decisions. To bring my fair and impartial judgment to the complex issues that arise from time to time involving the competing interests of the various stakeholders in the Federated plan.

Please list three issues facing the City that you feel the Commission should address. - underfunded status of the Federated pension - Lack of clarity as to the risk tolerance the stakeholders are comfortable with as we seek "alpha" to improve our unfunded status - Developing clear and consistent policies and governance structure for dealing with board-level issues so we are less reactive Anurag Chandra
(Optional) Please upload a resume.

Anything else you would like us to know?
Nothing I can think of.

Institutional investment experience

Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Please summarize your qualifications to serve as a member of the Retirement Board? Briefly highlight your skills, training, education, qualifications, experience (licenses and/or certifications) and personal qualities that you will bring to the Board and share with the organization.
20+ years in PE/VC investing (or related activities, like being an executive in private companies. 10+ years in private debt service on 10+ boards (dealing with labor, governance, financial, and political risk issues) Research Associate at the Hoover Institution Former lawyer, member of the California Bar Association Undergraduate degree in Economics and Political Science Spent a lot of time with family members who are/were union members, leaders, and pension trustees I am a good listener, understand the importance of compromise and working with stakeholders who may have different goals and, at times, competing interests.

Anurag Chandra
Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Please discuss your pension plan and/or investment management and oversight experience including the development of key financial policies.

I served on the Investment Committee during the last comprehensive review of our investment and governance policies. I have served, overall, on the IC for 5.75 years. I work closely with the staff to build asset allocation models for the board to approve. I provide guidance on how to conduct due diligence and manager selection for the PE/VC asset classes.

Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Please describe your understanding of the relationship between the Retirement Board and City Council? The City Administration? Retirement Services staff? Employee bargaining units? Plan participants and beneficiaries?
We all share the same goal- to meet the obligations to our current and future retirees. The communications between all of these constituents have generally been good since I've been on the Board. I'm encouraged by the sessions both plans' Boards have had with the Mayor and City Council. I think we can still work to understand each other's motivations and constraints better as we try to deal with a substantially underfunded plan.

Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
What do you perceive as the short and long-term goals of the Retirement Board? Short term- work with CEO and CIO to ensure day-to-day operations are running smoothly and are properly resourced. Long-term- help ensure the plan can meet its obligation to current and future retirees.

Set up processes and systems that help institutionalize the good work being done at ORS so that we are not too reliant on any one person (in case our leadership team leaves).

Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Do you believe that the retirement funds that are invested by the retirement boards are public funds? Why or why not?
Partly yes. Retirees make contributions, but the taxpayers may be asked to backstop any shortfall in the plans inability to meet obligations.

Yes

No
Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
If so, how is this report applicable to the work you would do as a Retirement Board Member? Very relevant and applicable. This "threat" will need to be resolved by balancing (1) the Plan's ability to generate superior returns (limited by risk tolerance and market forces), (2) hard choices on services to be provided, and (3) the role taxpayers may play (or have to play) in backstopping any shortfalls for desired or essential services.

Anurag Chandra
Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
How do you ensure that you are maintaining an in-depth and up-to-date knowledge of institutional investing and the capital market environment? My day job requires me to stay abreast of the capital markets. I attend many institutional investor events as a part of my job. The CIO's office does a great job of sharing pertinent info with us as well to keep us informed and up to date.

Reduce risk: We have set our volatility/risk budget to 12% mean variance. I believe, without input from the city, that this is appropriate. We can't take too much risk, but we need to take some to deal with our unfunded status. Thanks to Verus, we get excellent reporting on the risk profile of the plan and our CIO and staff do a great job of trying to maximize alpha within our risk tolerance.

My jobs in PE/VC essentially require me to be a "risk manager" of institutional capital. I have worked closely with the CIOs staff and Verus to manage and reduce the Fed's portfolio risk. We have a well diversified, highly liquid, and appropriately "risked" plan.

Asset Allocation is the primary driver of investment returns. Manager selection is a close second.

For
details on the asset allocation, please see the most current allocation model. I was centrally involved with my fellow IC members, the CEO, the CIO, and his staff in crafting it. I think it's a good asset allocation model. It takes into account opportunities for alpha in private markets and increases exposure to growth assets without materially increasing the risk score from Verus. We increased our exposure to growth assets in March 2020. In the next asset allocation discussion it will be important to drive consensus on whether we want to keep the same mix. I am inclined to not want to change due to the downturn in public equities, but if fixed income becomes more attractive and ladders can be created that approach our discount rate, we may want to make a change.

Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
How would you evaluate an investment manager? When would you terminate an investment manager? How should due manager diligence be conducted? Evaluation: track record (dig deep beyond the surface level marketing), ethics of the firm, the cohesion of the firm, sound processes, transparency with LPs, fee structure Terminate: returns lag benchmark or peers on a consistent basis. Turnover on the team. Plan is not getting the transparency or data it needs on a timely basis. ethical breaches. Diligence: use of consultants with expertise supplemented by staff doing their own work and/or scrutinizing the work of the consultants.

Anurag Chandra
Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
What should be included in a pension plan’s statement of investment policies? Please address the roles of trustees, staff, consultants, investment managers and custodians in asset allocation, portfolio structure, manager selection and due diligence, rebalancing, reporting and analysis.

The plans fiduciary standards, fund governance, investment objectives/philosophy, asset allocation, voting thresholds for deals sizes, delegation of authority to CIO & Staff and IC (vs decisions that must be made by the Board), hiring/terminating investment managers, restrictions on investment types, etc. The staff and consultants have the primary responsibility for day to day ops, finding managers, conducting due diligence and reporting to the IC and Board. The trustees play an oversight role, vote on managers, approve/set asset allocation, and provide expertise on macro (capital markets) and micro (things to pay attention to in due diligence) guidance. Invest managers typically don't play a role in our decision making. their job is to execute on the investment strategy pitched to the Plan and provide transparent reporting on results/returns.

Yes

No
Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
If yes, please provide details.

Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
Are you or your firm currently or within the past five years been the subject of any investigation or disciplinary action by any governmental and/or regulatory body (SEC, NASD, states Attorney General or Insurance Commissioner, etc.)?

Yes

No
Anurag Chandra
Question applies to
Police and Fire Retirement Plan Board,
Federated City Employees' Retirement System
If yes, please provide details.

Verification
By checking the box below, you agree with the following statement.

I Agree
*
Anurag Chandra

San Jose City CouncilNovember 29, 2022

San Jose City Council
November 29, 2022