Submit Date: Feb 24, 2023
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
Profile
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://rovservices.sccgov.org/Home/IndexPost?
selected=dt&electionId=133&distance=5&navtab=vc&asm=simple * N/A - Retirement Board Applicants Only
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 multiple boards
Drew Lanza
Home:
Drew Lanza
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 If not a resident, do you live within 50 miles of San Jose City Hall? Yes No
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
<Retired>
Address of Current Employer of Spouse
<none>
Spouse's Job Title
<none>
If you or your spouse is retired and receiving a pension, please state source of pension.
Jane gets $1,500 a month from IBM
Demographics (Optional)
Berkeley Catalyst Fund Founder and Managing Partner
Drew Lanza
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.
BSMSEE Stanford 1979; MBA Harvard 1987
List any position or office held in any governmental agency, civic, or charitable organization including the dates.
Stanford Museum ~1998-2008 Chairman Pajaro Dunes Association HOA ~ 2016-present (Treasurer) Smart Coast California 2022-present
Languages Spoken
English; Spanish
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'd like to continue the service I started 11 years ago to help the P&F Retirement Fund get 100% funded.
My major objectives for this term would be to get our discount rate up to the median of our peers (7%) while simultaneously lowering the core risk of our investment portfolio and I would like to see the plan become 100% fully funded on a market basis before my next term expires.
Please state any other information which you feel would be useful in reviewing your application
I was in the freshman class of public trustees back in 2011 and I brought my expertise in building high function teams to this board. I was the major instigator of Measure G back in 2016.
Drew Lanza
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.
I am fully recusing myself from any decisions related to small investment in any venture capital funds which might intersect my fund. VC is a very collegial business and I 'intersect' hundreds of other VC funds.
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
Drew Lanza
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
Ted Hou
Reference 1 Address
Menlo Park
Reference 1 Email address
Reference 1 Phone
Reference 2 Name
Alison Wrigley Rusack
Reference 2 Address
Santa Barbara
Reference 2 Email address
Reference 2 Phone
Supplemental Questions
Drew Lanza
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 over 50 boards of directors of all shapes, sizes, and colors. I have served on this board for 12 years this Spring.
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.
I am an acknowledged expert in building and sustaining high function teams.
What is your understanding of the purpose of the Commission? To oversee the funds held in trust for San Jose's Police and Fire employees and to administer those funds and the benefits they provide in a prudent fashion.
Please list three issues facing the City that you feel the Council should address.
Underfunding of both the P&F and Fed plans. Autonomy of the plans. Compensation of the financial professionals who work for the plan.
Drew Lanza
(Optional) Please upload a resume.
Anything else you would like us to know?
I am an expert in high function teams and I believe the experience of the P&F board over the past decade shows that I have brought that experience to this board. Fortunately, the city of San Jose itself is run by a high function team. It may not be apparent at times. but the Mayor and City Council and staff (such as Jennifer Schembri and Cheryl Parkman) are also a high function team which has made this journey both a rewarding and a pleasant one.
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
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.
I have served twice as Chairman of this board and I have been a trustee of this board for 12 years.
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 have served numerous times on the Investment Committee of this board.
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 City Council oversees our activities and approves annual pay and bonuses for our senior staff. We work closely with the City Manager, the City Treasurer and Auditor, and the City head of Human Resources. We hire and manage our staff. We generally do not interface with the bargaining units. We oversee contributions to the fund from active employees and oversee the disbursement of benefits to our retired members. We also serve as a conduit between the city and our retirees for information.
Drew Lanza
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? Long term to become 100% funded while having a plan that is less risky than our peers. Short term our goal is to use financial alpha to achieve a discount rate commensurate to those of our peers (7%) while simultaneously having a core portfolio that is less risky than our peers.
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?
They are public funds in the sense that most of the money in the funds has come from the taxpayers of San Jose. But they are not public funds in the sense that they are accessible to either the public or the city. They are funds held in trust for our active and retired service members.
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 link is broken> The report I think you're referencing is now 15 years old. Most of the recommendations made in that report were insightful and have been implemented by this board. The auditors insights about disability applications, however, were incorrect and has since been rectified with the auditor's office.
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? That is the job of our Investment Committee. As Chairman, I make sure that committee is chaired by our most capable trustee and staffed by our most capable trustees. The monthly reports by that committee and by its consultants keeps all trustees 'in the know'.
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 worked for over a decade now to build an investment staff capable of generating consistent, profitable, predictable, sustainable alpha and, under the superb leadership of our CIO, Prabhu Pilani, we have met that goal. I drove the risk budgeting exercise for this board which culminated in an all-day offsite any he Hayes Mansion about five years ago.
Drew Lanza
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 used to determine what assets will meet the required risk tolerance of the city. A small portion of the portfolio is allocated to achieve 35 basis points of alpha. There is also the occasional rotation of our asset allocation to achieve 'gamma' which we successfully did in the Spring of 2020 generating an incremental $500M for the city. The job of recommending asset classes and their proportions is left to our investment committee, staff, and consultants and is presented to the board where it is scrutinized, debated, and approved.
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?
Yes. In small quantities overseen by professionals on staff, on the Investment Committee, on the board (I created the board's VC investment strategy, for example), and consultants.
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? Have they consistently delivered what they committed to? I would terminate them when they consistently underperform their commitments to us. Diligence is a 'deep dive' into what commitments they've made in the past and are making now, have they met those commitments, and a deep understanding of how and why they did.
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 job of due diligence, rebalancing, reporting, and analysis is left to the Investment Committee and staff and is periodically reviewed by the whole board. At the core of our investment policies are two decisions:
who selects the asset allocation and who implements it? Th selection is a long, winding road that starts with the board selecting a target risk (volatility), staff and consultants suggesting some asset allocations which would achieve that, then the Investment Committee whittles down and shapes the choices, and then the whole board scrutinizes, debates, and approves an asset allocation strategy. Implementation is generally left to the Investment Committee and staff. One of the straights of the Police and Fire system is the extent to which we've delegated to our Investment Committee and our staff which allows us to make decisions rapidly and prudently.
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
Drew Lanza
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
*
Drew Lanza