MINUTES KANSAS PUBLIC EMPLOYEES RETIREMENT SYSTEM BOARD OF TRUSTEES INVESTMENT COMMITTEE September 29, 2016 The meeting was called to order by Acting Chairperson Kelly Arnold at 2:35 p.m. in the Retirement System Boardroom, Topeka, Kansas. Board members present:

Kelly Arnold, Acting Chairperson Lois Cox Ron Estes Ernie Claudel Todd Hart Michael Rogers Shawn Creger

Staff Present:

Alan Conroy Elizabeth Miller Bruce Fink Dean Roney Julie Smith Shannon Kuehler Eric Wigginton Dan Fairbank Daniel Wadsworth DuWayne Belles Mitchell Fick Judy McNeal Krystal Yegon Candace Blythe

Others Present:

Allan Emkin, PCA John Burns, PCA Martin Rosenberg, The Townsend Group Jeff Leighton, The Townsend Group Richard Brown, The Townsend Group Ward Fitzgerald, Exeter Property Group Alec Burleigh, AEW Capital Management (by phone)

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Public Comment There were no public comments.

Approval of Minutes It was moved by Ernie Claudel and seconded by Michael Rogers that the minutes of the July 28, 2016 meeting be approved as submitted. Motion passed. Introduction and Overview The Chairperson recognized Elizabeth Miller, the System’s Chief Investment Officer. Ms. Miller provided an overview of the System’s current asset allocation relative to the target allocation as well as investment risk statistics and introduced the agenda items to be covered in the meeting. Real Estate Investments Executive Session It was moved by Acting Chairperson Kelly Arnold and seconded by Ron Estes that the meeting recess into executive session at 2:40 p.m. until 3:10 p.m. to discuss confidential real estate matters. Alan Conroy, Elizabeth Miller, Dean Roney, Shannon Kuehler, DuWayne Belles and the representatives of Pension Consulting Alliance, The Townsend Group and Exeter Property Group were included in the discussion. The open meeting reconvened at 3:10 p.m. in the Retirement System Boardroom. It was moved by Acting Chairperson Kelly Arnold and seconded by Ron Estes that the Investment Committee recommend to the Board of Trustees a commitment of up to $60 million to Exeter Industrial Value Fund IV, L.P. and to authorize staff to proceed with the investment pending a satisfactory and final legal review of corresponding partnership documents. Motion passed. Real Estate Separate Account Status Report Executive Session It was moved by Acting Chairperson Kelly Arnold and seconded by Shawn Creger that the meeting recess into executive session at 3:15 p.m. until 3:20 p.m. to discuss confidential real estate matters. Alan Conroy, Elizabeth Miller, Dean Roney, Shannon Kuehler, DuWayne Belles and the representatives of Pension Consulting Alliance, The Townsend Group and AEW were included in the discussion. The open meeting reconvened at 3:20 p.m. in the Retirement System Boardroom.

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Board Educational Session: Timber Investments The Chairperson recognized Dean Roney, the System’s Deputy Chief Investment Officer for Private Markets, Martin Rosenberg and Richard Brown of The Townsend Group, the System’s real estate consultant. Mr. Rosenberg and Mr. Brown provided an educational presentation on the topic of timber investments. They responded to questions. Annual Review of Statement Investment Policy, Objectives and Guidelines The Chairperson recognized Elizabeth Miller, the System’s Chief Investment Officer. Ms. Miller provided an overview of the recommended changes for the annual review of the written Statement of Investment Policy, Objectives and Guidelines. Ms. Miller answered questions from the Board. It was moved by Acting Chairperson Kelly Arnold and seconded by Shawn Creger that the Investment Committee recommend to the Board of Trustees the adoption of the amended Statements of Investment Policy, Objectives and Guidelines for the Retirement System, the Treasurer’s Unclaimed Property Fund, and the Death and Disability Fund. The motion passed. Other Business There was no other business. The meeting adjourned at 4:35 p.m.

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