>> >> board will hear remote public comment on each agenda item in the order that commenters add themselves to the queue to comment on the item. (microphone feedback) added to the speaker line. best practices are to call from a quiet location, speak clearly and slowly, and turn down your television, radio, or computer.

and others during public meetings and will not be responder to only on mandatory within the jurisdiction of this body and thank you for joining us. >> no public comment on is next item, please investments closed session. >> i believe we're going to - public comment? >> we have any public comment on this item? >> seeing none,

[off mic.] moderator, any callers on the line? >> madam secretary, there are no callers on the line. everybody and there is maybe some questions going through but we won't - we'll just keep our fingers crossed. >> paramedic us good to see a full room this is incredible. >> okay. >> can i have motion regarding disclosure. >> i move not to disclose consents in the closed session. >> second. >> moved and seconded public

comment please. thank you, (microphone distorted). >> seeing none, moderator, any callers on the line? >> madam secretary, there are no callers on the line. >> thank you, here we go none. okay. moved and >> all in favor, say "aye." >> aye. >> >> opposed? next item. public comment. >> a reminder public comment we have. >> madam secretary, there are no callers on the line. >> seeing none, moderator, any callers on the line? >> >> madam secretary, there are no callers on the line. >> thank you, hearing no calls

public comment is closed. >> okay. next item, please. item. >> 5. action item: approve minutes of the june 12, 2024, retirement board meeting. >> move to approve the june rehabbed meeting. >> second. >> public comment please. any members of the public on this tomb? >> seeing none, moderator, any callers on the line? >> madam secretary, there are no callers on the line. >> thank you, no calls public comment is closed. >> next item, please. 6 consent calendar. >> move to adopt the consent calendar. >> second. >> moved and sent public comment please. (bell ringing) >> thank you do we have any public comment? >>

moderator, any callers on the line? >> madam secretary, there are no callers on the line. >> >> thank you to calls public comment is closed. >> moved and sent. >> all in favor, say "aye." >> aye. >> opposed? nay motion passes. >> next item. back get a vote on the minutes i didn't hear that. >> on approval of the minutes any hear it. >> what? >> vice president thomas made the motion and again, i didn't hear the vote after that (microphone feedback). >> what's going on. okay? >> sorry. >> i said i don't believe we had a vote on approval of the minutes motion and second and public comment i don't hear the vote. >> i thought i voted.

>> sounds do it >> aye. >> opposed? nay. >> motion passes. >> thank you. >> to the retirement board prior to the current meeting: staff memorandum action: approve president's committee assignments. >> okay. >> sorry. >> okay. >> we've had what did did committee assignments which is obviously very important factor on what we do here and become more important and appreciate all the um, the attention the fellow commissioners have given to the attendance and (background noise) and much appreciated and i'm sure the orientation or oeshgs

/* /* organization and before you is the schedules and minor adjustments but this is something that i think everybody is seated and committed on committee. that are best for what they do and also um, vice president thomas is continuing on the investment committee chair and obviously i think my opinion on the investment committee is common where the work is done and um, vice president thomas is excellent for that. so um, i believe that is a motion by the do need a motion on this or any discussion? first?

>> i move adoption of committee membership as proposed. >> second. >> i'll make the observation that board member o'connor is not here but that will teach him not to miss a meeting (laughter). >> that's why he's not here. >> okay. so public comment please. >> thank you. >> (microphone feedback) moderator, any callers on the line? >> madam secretary, there are no callers on the line. >> thank you, hearing none public comment is closed. >> okay. moved and >> all in favor, say "aye." >> aye. >> opposed? nay. >> say nay. >> motion passes. >>

>> next item, please. documents provided to the retirement board prior to the current meeting: chair memorandum action: this is a discussion only item. (microphone feedback). >> okay. that was the committee the personnel committee for those who didn't hear it. that is pretty much we have the personnel committee has their terms of preference they - we review the performance of 2023 service coordinator and the ceo cio that was done and in closed session today, we um, presented the finding of what our product was in terms of reviewing and the board had a

attested to the individuals and it was they were um, review was accepted by the board and that's the extent i'm not - i don't think we need more information the board we don't do reruns that is an hour. so i don't think motion here don't need a motion. >> no. >> so let's ask for public comment. >> thank you, (microphone feedback) any public comment seeing none, moderator, any callers on the line? (microphone feedback) seeing none. >> madam secretary, there are no callers on the line. >> thank you, hearing none, public comment is closed. >> documents provided to the retirement board prior to the current meeting: staff memorandum action: this is a discussion only item.

(microphone feedback). >> just one all items on the consent agenda have been recommended for approval by the development we're working on the audio. >> i have a comment they're just seeing eileen. >> are they able to hear staff. >> not only on darlene. >> only darlene so we can't - i wonder if those ones. >> that's a great question. they were only able to hear darlene not the board maybe the

presentation to go forward. >> yeah. those movies we've used those ones are hearing we can continue with the agenda if they can hear. >> test, test, test (microphone feedback). >> i'm working the echoing i'm hearing. >> testing, test. >> the person committed

sfgovtv a (unintelligible) we can go forward. >> we can go forward? >> i think so i think the person announced they can hear. >> and to clarify the issue for sfgovtv? >> i'm not sure they could only hear darlene. >> and we can't continue with the meeting if if not broadcast on sfgovtv. >> it is reported one way or another. >> thank you. >> all right. so are we recording i can only start on my section. we are on item number 9

retirement board prior to the current meeting: staff memorandum action: this is a discussion only item. i'm i'm going to turn it over to i. >> so the strategic planning policy um, guidance providing an manual statistical plan that is in december. >> this is only i can hear you and sfgovtv but not on the webinar. >> thank you. [off mic.] >> i think if happens that the callers can't (technical difficulties)

hear [off mic.] >> initialed. >> all right. listen would somebody please talk where are we? >> we've got a to of people waiting a packed agenda i need to know what the situation is now. whatever you

>> [off mic.] okay. is it acceptable. >> yes or no. >> yes. >> if they're members of the public can hear that is the main concern i think only participant got invitation can hear through assessing by sfgov we are. >> item no. 7 - report of the general manager. >> should be fine i don't know about the callers. >> just a let's get a recording please so we're good let's go forward on what you just said go forward. >> yes. >> so the caller said they would hear us earlier. >> sorry we'll procedure with the strategic directions the moth to review the strategic planning annually to the policy in december and - but our

strategic man was that the question was too early to go forward and do a review so we're providing that review i think at the end of fiscal year and the new fiscal year for the strategic plan review. in short i'm not recommending change to the strategic plans are that material and we or on a good path and executing that plan a three to 5-year plan we executed a lot in the first year and a lot of a lot to be done i've talked about what we're accomplished in an earlier session so i'm not going into the details and all the materials i provided to you here but want to extend a thanks h.r. and business services and it and business and a few progress in

the strategic plan will not be possible without all of them and the worst case scenario i shared each day we get a lot done what we are accomplished over the years a heck of a lot and what you see in the strategic plan that reflects that. and again, between the written report and what we discussed not going into each item but happy to address any topic you want me to talk about or questions you may have. >> commissioners? >> any questions? >> no. >> it is part statement and part question. under goal number 4 the third enhanced government more efficient and decision making and go coming that has affected powerful words i want

to make sure i understand what you're saying. >> i want to make sure the third bullet point. >> (multiple voices.) >> the 5 on the goal effective diversification what does that mean. >> that is the differ indication across within the class by the types of investing and the returns are generated and what um, and even the types organizations so multiple facet of diversification. >> and that is i know what diversification but what does the word modification mean? >> that um, that is not

diversification but effects diversification we are generating return um, we're are committed for the risks we're taking not over diversified and the driver to return to within resource a travd to generate those returns. >> not a strict definition but a multi-faceted and it makes a difference between accounting and efficiency it's what you're driving at and up one level managing risk that's what drives our positions. >> how we manage risk buzz the decision making so the third point i'm glad to see there are (unintelligible). >> the governance committee

number one, topic you'll be trying to discuss will be decision making so a lot of learn and training what i'm trying to get at the board is aligned with staff. >> this is a strategic plan for the board to adopt but the decision making staff level day to day delegation has occurred in the last year and i think we're modeling was brought up an example of developing the tools for a better investment performance and condolences. >> that's the statement therefore the governance committee supporting the full board on this improving the decision making i want to make sure that is tide into the development of efficiency and a decision making skills of your team on both the investment side and the services.

>> yes. this is um, part of the governance committee um, elements of this likely in the upcoming board retreat and to discuss we did the investment team did training several sessions in the training the training is paralleled by the process and the framework that we set up how we make decisions and told to make the decisions also good to the testing of our ability to make the decisions. >> thank you. >> thank you. any other questions them? >> none? okay. >> decision item only public comment. >>. thank you. [off mic.]

(microphone feedback). >> get and the motion. >> discussion item only (microphone feedback). >> fired (microphone feedback) >> madam secretary, there are no callers on the line. >> public comment is closed. (microphone feedback). >> next item, please. >> next item, please. >> 10. chief executive officer's report: staff memorandum, retirement board forward calendar for august 2024 retirement conferences and training programs for sfers trustees - nossaman llp. (microphone feedback) ceo report. >> commissioners are we getting a shall i continue is that okay? >> no?

(microphone feedback). >> okay. so when we do get this thing working i'm going to i'm going to suggest that we move the chief executive report get item 11 t'd up that is what [off mic.] >> we ask the class review. >> real assets class review. >> i apologize to the people 40 in the aids that came here and bear with us. >> all right. commissioners we

are here to present our manual update today i have i have chiu and others along with mark with - so as far as agenda i'll keep up a united states of america for 2023 and talk about the program and the goal in the portfolio and work you through the performance and chris will have exposures and positions and in the portfolio and the initiative and mark with cag will walk you through the market what we're seeing 30th in the market and how for the past year a real and so quick summary a

strong 2022 the portfolio was up 10 percent the 2023 was negative and driven by the real estate portfolio and exposure and the portfolio was and our infrastructure portfolio the newest edition was up 5 percent. >> and an an manual basis our benchmark that is also negative but not as much on the long term basis the portfolio was 12 and our proportion benchmark to the past 5 and 10 and 20 years. and as of the end of december 2023 our allocation was roughly 15 perk compared to 10 percent

target a reminder our target was reduced from 17 to 10 percent in 2020 but then 2022 the portfolio was up 27 percent and 22 was up another 10 percent and that is the pain reason we're still outside of our target. >> moving forward as far of cash flows a negative year for the portfolio and roughly from the $2 million to the last portfolio that was driven by our real estate investment and our infrastructure investment is the portfolio we're continuing the nature resources are up with a lot of cash and really, really slow year as far as the commitments to committed roughly

$7 million across the investment and for the existing portfolio that was below our target of $600 million and primarily driven but what we see in the market activity is down and investment activity down not a lot has been happening. and the next few pages just to a quick reminder about the program was we're going to be in the portfolio it is the total return orbited program we are targeting roughly 10 to 12 percent on a basis but have additional goals portfolio the portfolio will provide diversification and hopefully inflation protection as well. we covered some of the key strategies in the portfolio are real estate and infrastructure and infrastructure was added formally to the portfolio in

2022 and now part of the long term be targeting roughly 10 percent x portion to the infrastructure this is we start investing in 78 and the performance over the years the ma'am, has a goal the next page is a good revenues of our program started other as a 4 real estate portfolio and for the majority of history real estate portfolio targeting and delivering 8 percent return but starting roughly 20232024 was an asset portfolio we at investment and natural resources and more non-core real estate represented by the red color and more recently infrastructure you see in purple but that is a

diversified portfolio. with that, i'm going to turn it over to my colleague to walk you through performance of our portfolio. >> thank you tonya. >> so on this page we're looking at 2023 return to the public market so (coughing) in light blue natural resources as you can see mixed and lp leading the way while crude oil lagged and the real estate has a showing this can be contributed to the fourth quarter chase one of the strongest quarter for the j f c. >> focusing on the a little bit on this slide similar to last year every in the - by

spectator and last year had a strong year demand is record levels and office lags and the other .2024 returns have so far corrected somewhat and to do that in context a lot of the returns last year came in the fourth quarter driven by strong expectation to be rate cuts in 2024 so fewer returns were up 18 percent from a negative return at the end of but as we progress this year the competitions of rate have tapered off and the bottom row is noting our exposure i want to note those are closed in private fund no x portion in the real estate

assets and regarding real estate funds so fundamentals are shown normalizing after the pandemic and evaluations are row setting come down the expenses are higher but increase in as demand levels have been high that is putting pressure on rent growth and likely to continue for this year. hover i pointed out while it is down and it has picked up the real estate are far from broken. as you can see there are so healthy for many segments and vacancies in line with trends in line or below long-term trends nothing over the concerning today and the office has obvious struggles with vacancies still trending up the vast majority

picking up in real estate not the funds themselves those fundamentals have held up quite well. this chart is showing. >> sorry to interrupt can we ask questions now? >> sure. >> so can. >> unpack that a little bit we often read in the press the expectations of fundamentals and i want to be ceded and all the board members when i say financials are strong and commenting an office space other factors we should be educated are are you unpacking that and let us know we're reading is inadequate or we should be more off administrative by the fundamentals. >> i wouldn't say that's the one segment they're weak maybe

what i meant that segment has struggled and difficult in the office rents are potentially higher than than prepandemic for the most part but is striving to find it's footing in chair oakley funds have held up and they're strong rent growth in the coming out of pandemic in 2021-2022 those were going to come down. but even today, we are seeing multi-family double digits is strong despite the headlines around real estate and those negative headlines have been generated by capital market and the cost of debt that is driving the segments and has

gotten where owners beauty at low cap rates with low cheap debt not in the same position as today as years ago and so that the floating rate debt that is where they come into play today owners are not the capital structure did work no more and they need to refinance so that can create opportunity, you know, go forward when it is point on to provide we can provide solutions for some of the owners but again a lot of of that is in the capital market and capital structures and debt levels when you look at multi-family industrial there is more supply coming online that is no secret we are seeing that

that will happen this year and next year high levels of supplies. but as the flip side we are starting to see construction drop off but as 40 percent so when you look at the longer term again the fundamentals feel pretty good bus demand happening and demand for commercial oh, shoring and other trends. so supply brothel and things like that those fundamentals long-term are continuing to impact with long term demographics. >> i say so, yeah yeah. >> thank you. >> so here we are, looking at public versus private markets as you can see the gap that is development over the last few

years. mayor henderson at some point something needs to - we expect the return to remain depressed and in red they have - real estate index in blue so again, the expectation those values for the private funds measured by the cambridge will match the public the developers investment and core index, however, i'll say it is time for public market to overreact and on the negative side therefore they're values are in between the gap. we broke down in performance portfolio at a high-level infrastructure

performed well and detracted from that and the - within real estate our specialist manages on consensus strategies are more needing assets outside of segments those contributed to the performance and core managers detracted and the performed well those are gaps detracted and as mentioned earlier they contributed with the performance last year. >> here as you can see the return contribution by quarter a challenging year relative to 2022 the only positive quarter in 2023 by a rally in commodity back in 24 and continuing with the real estate at the end of the year. >> this a performance chart is

you've seen before as you can see as we discussed the negative one year performance we and under performed the benchmark over the one and three year time period that turns to longer time periods in terms of the rates had a strong q-4 up 18 percent that drove the performances in the one and three year time period for the p m e and the private market will not move that quickly given the private back and what you look at the 5 years number the includes the strong q four from 18 negative and the negative number dropping off and boats that in the 5 years which is why you see large difference in the portfolio but as you can see long termser the doctors in the performance turns

to out performances. >> on 18 this shows the portfolio versus the to the plan performance and a tough year in 2023 but beyond that real assets have contributed to the projector and in 19 trend when looking at the portfolio versus inflation, you know, the short term and the one year it is a possibility how with the movements but over the longer term we ought pace inflation. >> this slide broke down this by strategies that varies short term but longer than time periods in real estate we are in line with the benchmarks and with that performance starting in year 5. and natural resources we underperformed given our portfolio portugal's we were impacted by right down to the

natural gas declined and that is 60 percent over year in average that is a drag in the short term performance and did portfolio are young we have more exposure to the digital communication and a difficult year with the sector but strong performing for our portfolio in the longer term time periods. >> regarding our time investment portfolio performance remains slack and the portfolio is young with the average age over 4 years didn't add anything new in 2023 and actually deemphasizing in favor of sidecars or managing account and to co-invest with the other markets. >> and finally, this slide shows the appreciation and

depreciation with a more challenging environmentalist high rates are set in unfortunately, the first quarter of this year is negative but optimistic of future and i mentioned manages have taken opportunity to add evaluations that can be obtained since a few quarters ago and new hand it off. >> thank you chris now the portfolio construction we're we're headed on 2024 this illustrates where we plan to put our capital from the top down. and we focused on real estate infrastructure we are targeting long term trends and don't change year over year and emphasis the streams with long

terms financials for market time we made a few adjustment from last year with the respect real estate and not in the private market. and includes cell towers and lab spaces and housing and others oftentimes can be directives of traditional sectors in storage in simple terms with swhairz or office trends. we added development and communicated also attractive and the capital high construction costs and existing assets is a better risk award on the next

slide the high-level snapshots we're going to discuss further and those are the largest will be the majority of our program and in the opportunities and it is pretty diversified by the body worn camera and in the past we had a material underway that is industrial with a redonation in 2020 with the materially and the traditional swlairz and storages and for a pickup in deal making activities we believe investing in the years over the coming years and expecting a year end on the next slide this illustrates the evolution and market we had in the past. i'm natural resources is part of our program and we evolved from the programs for a relaxed portfolio in 2014 and

grown in 2021 and we expect to gradually decrease over time and elsewhere those are divested assets as i mentioned adopted in 2022. >> on the next slide the portfolio x portion but geography we do the portfolio and most of us is actually exposure from real estate over the past couple of years is more domestic and following a period of time for investment and while it takes time that concept the north american exposure about it takes time and we've dive into the exposures and for this slide this is focused on real estate and a lot going on so i'll move

from the commissioner caen drant and we have gone to non-exposure the last snapshot in the mid is the middle par bar out of 2023 the far right is the benchmark so approximately 70 percent and thirty percent core and at the bottom the portfolio exposure by geography request real estate and as i mentioned most of exposure in the program and calendar to the cambridge benchmark we are over the large exposure and on the bottom right quadrant the exposure i mentioned about the industrial in line these days and supplied by the specter coverage observe the next slide the natural resources and the portfolios the left side is natural resources

and natural resources for us is investments and my wife and i investments and have an offer weight in commodities which last year was a avenue active to our return infrastructure diversified noted and have exposure that includes the fiber toughest and have been growing our subsequent in decarbon on the 30th looting the employment looking for 6 hundred million per item on the right side around 4 hundred and likely to be around the similar level for 2024 and the fundraiser are leading to pro tragic fund-raising with the team

committing to - and 2022 the portfolio did positive in the cash flows with the contributions the negative last year. and that is the interest rate rise and waited for the managers with the wide spread in 2024 negative around $100 million and this is expected to be negative if wraps up our portfolio x. >> please state your name and whether you are a resident or nonresident. and lastly, talk about the initiative on this slide in the past we highlighted continuous we're working on a regular basis. i'll make a few comments one point to be more fully diversification and factor in the market environmentalist and have a wait that is

currently above target and two we are currently under the real estate and the boards approved the long term wait and we focused the efforts in the years and three the report we have shown before for the officer role as of last week and so i believe we're a great team. >> and this end the last 15 remarks and mark from cambridge will give the additional commentary on the market. >> thank you chris and thank you for driving. >> so i'll spend a few minutes talking a bit of an update and go to slide 12. to begin you covered a lot of earlier slides and i'll make sure not to be representative but essentially the top chart the real estate

moved from one and a half to 6 and a half percent that is 25 percent drop in values since the peak in early 2021 and that is, you know, range of ranges by sector and geography and office probably down to thirty or 35 percent retail and industrial. if you go to slide 13 and chris touched on that they pricing has been more dramatic in the public market and the private market the appraisals are based on the trends are down we showed so, you know, they are i think with the q one mark a mark down in q two and at that point the private market is are getting close to reflecting the reality

values of (unintelligible). >> so where are we in terms of evaluation we're at bottom bouncing along the bottom and what is dragging one an expectation the interest rate will be a move lower not a move higher by generally available spread and we're that's being reflected in early signs of a pickup in the transaction volumes and that helps to make the other point as cap rates rise cap rates need to move up to the mid to high 5 and 6s that is happening at that point, you know, debt becomes, you know, a creative adding financing the

transmissions are creative if nuts and bolts immediately within, you know, within a short amount of time of acquiring the property representatives will represent a clearing place where we are more transactions this is the case with a period of uncertainty and the discovery owners objective won't sell in the type of investment and the impact is obviously on the distribution so over the last couple of years are less than we expected and slide 17 touches on fundraising for the real estate industry the fundraiser in 2023 was a decent year and reflects a

recognize that values have reset. the challenges that many owners face in terms of asset values below, you know, below where they, you know, where they are and have trouble that creates an asterisk active - other dynamic at the bottom that capital you will see the players in the headlines with some significant transactions public to private transactions. this story and chris touched on that i'll be brief focusing on the fundamentals with the story gets more positive this types of on the vacancy rates and a

multi-family sector that is decent and absorbing it apply the multi-family bend from the new families and mortgage rates are high and better for families and industrial benefits from the refrigeration rates and increasingly from on and on shoring and shoring in the u.s. and it is interesting the green line which in many folks were predicting the death of retail didn't survive but other types of retail has been no new salt lake city of retail in the last decade so the sector that is performing well, today, and there are analogies with the people calling for the death of office sector and again, there is office won't, you know, won't have a future as office and continue to struggle and, you

know, be vacant b-3 will be winners and loser it takes time for the retails for the office to eventually recovery. >> sorry to interrupt i appreciate if you can impact on the retail side similar things about the death of rail and absolutely. we see it driving other context. >> yeah. yeah, so and i think there is a dynamic urban retail and start obviously downtown market i see that walking through the cities i think a lot of it is driven by the dynamics urban retail in the urban markets with the stripped retail it is row silent that has not changed but in the retail the strips are services that have restaurants and those are doing

very well and i think the partly of the people working if home they're out and about in the community a little bit more often and details so, you know, all retail tends to be in the same rush but have been winners and losers and you'll expect to see the u.s. office building is doing decennial well but other offices are struggling. >> i didn't see that when reviewing the slides did i see any material from the urban rail anything that shows disentake a look at.

>> and since the earlier we all the experimental real estate they focus on the office sector and high profile office buildings like san francisco struggling there is no doubt that is happening but those articles don't talk about the other sectors regional hotels and sectors maybe the fundamentals are deteriorating but coming off so they're doing well and slide 18 we touched on when basically showing decelerating and it is positive go to slide 21 i want to touch offender on the charity wall a bit of a - i don't know you'll call that a commissioner cool and glom type of discretion with that describing is the maturitys

backed but commercial real estate and in the fact that there is a large number of maturities coming there are a decent amount of loans coming due every year but after pandemic there are concerns with the maturities coming due and it is from the perspective certainly lenders on the smaller side that are will struggle as a result of having commercial real estate and have a lot of offices and loans they'll struggle a conversation needs to take place and oftentimes borrower can put

in addition cadets and get an extension and there are scenarios they ask about a loan and leads to a loan foreclosures but that while there are ongoing conversations for those conversations will, you know, take years and that wall continues to get pushed to the right and for the kick the can down the road but a better scenario than a lender to force an other than to sell. if you can go to slide 24. >> what sectors we continue to like touched on the residential chris did and the senior housing an interesting sector demographic supply has not

emerged since the pandemic and you're also seeing distressed owners that developed property with poor timing during the pandemic or just struggling with senior housing and at that point we're looking to sell within residential that is interesting. and continue to like industrial we showed the supply any supply coming down. and as chris touched on within the cold storage of exposure the dynamics are more available and the story we have been less active and continue to look for opportunities within real estate and i will note the prices in europe and the global managers are more active in europe than

is u.s. and asia we continue to like japan an asterisk active real estate market. and debt financing is a market and companies are really evolving in terms of stakeholders orientation and a lot of them with focusing on equity and a lot of them on real estate but that will create funds for critical real estate managers and touching on infrastructure an area we're looking to grow in the portfolio benefiting from the one of the need for vigil infrastructure and you can't do a day without breathing a i and they are having on it does not centers and physical of artificial diligence and a need

for the footprints and not only a need for just more electricity not only for data centers but again on the on shoring and shoring of manufacturing in the u.s. electricity growth is now projected to grow in a percent of a year that is significant a large number so interesting to see those mega turns and quickly natural resources as chris noted not an area we are making new commitments by generally this area is getting the sector is more december potent h looking for more gas and metals but

pushes that as our gp and sectors are selling assets winding down the funds and hopefully should be a decent environment we look for opportunities with metals in the green column are important with the reductions. and lastly, tonya go to slides 41 and 42 we touched on them but, you know, as we and staff think about where to spend a lot of time high-level teams we touched on a lot of those things and really i think that reflects - reflects the managers we are spending a lot of time and looking at the portfolios so i'll be happy to

answer any questions you may have. >> commissioner? >> two questions one page thirty um, basic request plan to do $600 million a year that? that say several funding from the real portfolio? >> sure our paying is 6 hundred portfolio is funding had been up until start of 2023. but i guess pulling from a portfolio. >> so - you basic said no and that's right. >> okay. fine. >> the amount of liquid at a separate meeting let me go back

to page real estate of component of real i looked at the map on page 9. how the dollars committed has changed over the last many years. >> what i'm trying to focus on is the decision to emphasize non-core versus core is that paid off a wise decision not illustrated on page 19 that's what i'm trying to get at i see timelines and my name is are great. thank you but i'm trying to understand to do commitment of neon core versus core with the issue of sectors and geography graphics and we can follow-up i believe we had prorjs on non-core and taking on

the risk a strong run until the beginning of last year. >> and a- >> (multiple voices). >> long term non-core has outperformed core. >> you want to change that. >> that's a discussion we have we do want to have some level of current income for real estate just two different managers and right now we are okay. not adding core and added non-core some level of current income and cash flow assets is appropriate and have a level of core and. okay. so the extra turn. >> ; correct? the affect on liquidity and whatever the results be prepared to guide us on that issue at

the. >> those are questions? >> there are no other questions conclude the item. >> thank you very much. (microphone distorted). >> need to do a public comment. >> do we have any in-person comments? fired >> do we have any in-person comments? there are no callers on the line. >> here we go public comment is closed. >> next item, please. >> 12. private equity asset class review: staff memorandum action: this is a discussion

only item. >> all righty um. >> can you turn on your mic. >> um, we'll start positive to private equity and here the private equity team with me and um, justin will walk you through through the portfolio before we go into the details i want to acknowledge the rest of team not presenting but put time and effort to make that presentation so thank you to. >> (calling names.) >> who are in the audience and have cambridge and the program we have for you today keep it similar to the highlights of 2023 which is the role of private equity and justin will walk you through through the

performance and talk about how we are positions going forward and work when worked and didn't work and talk about the portfolio and our initiative for 2024 and at the end anonymity will talk about the market. >> after a record 21 our portfolio was up 40 percent and challenging 2022 our portfolio was down 12 not 40 but 12 the 2023 is the every year implementation so the portfolio was at three percent and by making crow headwinds and similar to when a one year basis portfolio as a reminder the benchmark for private is a

combination of the public (unintelligible) three hundred basis point and the public market have done great in 2023 and challenge to capture (coughing) through a private equality a contributor and have dlifrpd exceptional 20 percent within the portfolio um, well, i think in general market were awarded sufficient and a boost to our portfolio which was up 10 percent and big benchmark for our capital portfolio and in a year of heightened political pressures in our performs here in u.s. and europe as lagged behind unfortunately. so despite

chaimg macro the team continues to deploy capital and deployed $800 million in 2023 below our one billion dollars target and that primarily was driven by, you know, what was in the market so fundraising for private equity fell off the cliff and the portfolio has slow down significantly so active in general has come down that is the permit reason behind the slow down and at 29 percent of assets as of december of we're overweight with the revised tart that was adopted earlier this year our exposure peaked at three 1 percent of 41 assets and tons to decline since and i'm our portfolio today is still in

the primarily driven by performance of portfolio our portfolio today is $10 billion. and portfolios delivery $5 billion over appreciation over the last 5 years advertise it. moving forward portfolio was still funding that is last year, we didn't have to for additional capital to put that into the portfolio and delivered should have been important and public markets assets open up this portfolio should be um, delivering a lot of cash am and then we see some positive signs year to date 2024 we will have strong distributions from our assets and we're trending positive roughly 80, $85 million year to date so similar to

private equity quickly i'll remind you, you have the growth engine for our assets. designed to deliver long term and we see public market and that is our benchmarks the combination of three hundred pays point of liquidity premiums and outperformed the benchmark and the key strategies are buy outs and venture capital and portfolio assets and global programs focused on commitments and investments and emphasizing partnerships with exceptional managers around the globe and the last few years a reminder that though private equity

portfolios over long term generates a source of liquidity and the last years was ideal was a good reminder of that. the program has been a long history over 36 years since the inception but currently $10.16 percent and one .7 multiple investment capital and the portfolio generated over $3 billion in asset performances with the benchmarks this is a quick snapshot of what we believe a game of portfolio objective the last couple of years a reminder of private equity and that's why it is

incredibly important to maintain long term horizons and consistency and diversification and participate in wild open market of 21 have to pit capital to work 5 to seven years ahead this is challenging and in opportunities in the private market for managers to turn asset returns and we got a wide diversion of and our job as a team is to find those managers and create assets for investing in benefits from that and some strategic long term team in the portfolio includes the portfolio has a big built growth and we see throughout the investment in veteran capital and - growth has

been punished over the last couple of years but b we are pornt and reevaluating the fields and recently unveiled our china going on the investments and job - and other areas we we using the buy other strategies important to have some semantics at the end of the day, we are opportunistic we need to have the managers in our portfolio and this is a new edition to the presentation. we always talked about private equities and we learn something in the whereas

couple of years we went through in cycles and now through the adjustment periods and looking back with rfbsz among the team with work and what didn't work and confirming some of that and i'm not going through all of these but deployment this is important for the managers and critical for us as a team investing and making investments in funds because in 2021 were managers coming down on a 18 month cycle it is okay there are great opportunities but those folks are over exposures to 2022 and for the that great we have similar discussions within the private equity team i lived in 2021 had close to $2 million of

actionable pipelines that was cutting cutting cutting and looking back that was absolutely the right decision but for a while didn't look that great and how we learned about the managers during this incredible period for a while leverage was available and, you know, were always different lefshld managers and not available anymore you need to figure out ways to innovate and you want extension and really different market today managers need to figure out or love their get operational improvements i'm highlighting this because it is incredibly important go as a team and part of that how having

to have reflections and at the end of the day, makes us better investors and the next few slides a graphical representation of our outperform versus the benchmarks $3 million in the creative versus the benchmarks and the next slide is the commitment pacing so we as a team target consistent commitment the village council. an item removed from the consent agenda will then be discussed and and over three years cycle around the billion dollar but objective 2023 was a slower year for us because while we're trying to be consistent at the end of the day, it also subject to the opportunity to the market environment and fundraising has fallen off the cliff you can't

add extension you're creating another problem down the line so a reflection of the market and opportunities we see today and 2024 is shaping up slow as well. and lastly, cash flows that is the evolution of program. i think around 2014 we had the allocation for private equity from 16 to 20 percent and that is when we started to point the program including j curve and 2018-2019 we should be generating a lot of cash but unfortunately, the market now are closed but we should be generating a lot of cash i'm going to turn it over to gusto walk you through the highlight for our portfolio.

>> hi commissioners so on 17 in front of you, we did a comparison of the private equity performance to the top past and the goals of equity to produce the long term performance on a risk basis so on the slide in front of you we've done that; right? for longer than private equity has been a strong contributor to the return on a 20-year basis the private equity performance teed our performance by 6 hundred base points. on the snapshot page we showed the creation for our private programs inception since inception deployed arriving $14 billion and roughly about that much back and produces one

.7 net multiple on the contributions and that transmits to almost $10 billion. >> the next slide we should the numbers over time and spoke out by strategies as the board knows the last couple of years has been challenging for returns that drives counsel the performance and over the long termser period we have outperformed the continually benchmark and think that is also worth snorting the capital has been a drag on the performance and however over the longer term venture capital we believe that will continue in the future the next slide is the p and e analysis and it produces more of an apples to apples comparison by replicating the same cash

flows so, so similar story our program dba did underperform the analysis but short termer how longer term we have outperformed since the inception has out performed benchmarks but one hundred base points and i do think this is important to note our policy benchmarks that is provided in the footnote that didn't does include the equity premium and hundred basis point for post 2017 if you exclude this we have outperformed by a garage marijuana for the next couple of slides provide a value for the board to show the creation for one and three year period for the one year period our program has. >> appreciated $300 million

and i think that worth highlighting the program was neutral to slight positive we received more distributions than contributions through the three year period capped positive and our programs produced $2.2 billion in value termination for the last two slides we wanted to provide the board with a preliminary q it is our cash flow we're seeing a net positive cash flow a lot of that is an uptick for the venture portfolio by companies so we have a positive $66 million in distribution in q one. the next slide is the preliminary q one performance numbers by the strategy and positive to date

roughly 72 percent of funds are being reported and for they're reporting and positive return. we are currently very cautious will i optimistic we believe that perhaps the work is behind us, we think it it takes time for private/public equity we need a more - operator for venture capital we do think this is behind us with that, i'm going to turn it over to ed for a performance and this section covers the drivers of reports. >> as mentioned earlier we are at targeting group across the portfolio and private equities is a class and continued to feel good we want to have a shorter

term term market and slide 26 focuses on the high-level of detractors and discussed the market shift from the costs and growth and probably and this is continued through 2023 as mentioned earlier. and justin talked about the reopening of the venture in growth before in order for that to happen we will see a broader market recovery and performance talking about for 10 years 60 percent of s&p 2023 excuse me - and tonya talked about this earlier and note that the elections this year are u.s. and everywhere has a meaningful impact going forward and that is part of our and is portfolio company plans

to be the tape performing in venture capital and the sub serth that is relating the one the subsection terrors performed and how the "x" pours performed and we feel good about this and has been created. we haven't seen any changes to the exposures and looking forward we expect that to continue and healthcare we focused on the commitments and have efforts and measures this is and probably will be more consistent talking about this time next year. >> slide 28 for the apec and the majority of our apec through the venture strategies we believe those developers will took advantage of this and because of the asian pacific is

in the early stages of development and a x purse from 24 in 2022 to 18 percent in 2023 mainly driven by the differences across the - and pacing in 2019 some of that impact is of the now. slide 29 is interesting reminders here that measurement can have meaningful impact on relative performance looks for example, the apec portfolio last year outperformed the benchmark and across all-time periods and in general apec has when compared to the cambridge benchmark and portfolios underperformed bus the key provisions in china and linked cambridge to a higher percent and cambridge compared and have

more venture growth exposure for cambridge and all that have been best performances and performance is strong along the timeframe and european is x purse is well and expect ongoing volatility in the representative of the european market the performance numbers we see are driven by individual portfolio companies not really one. and looking forward the u.s. about maintain likely remain the bulk of the leaders we are reviewing our exposures to the upper opec

administrative when reviewing european investment and slide thirty is the capital exposure is ticking up driven by short term differences and strategies i will note 18 to 2019 is on point driven by a combination of secondary focused on selling the bio x purse and those years are strong. >> and going forward expect 40 or 50 percent to the strategies long term out roughly that same range i should say and 45 percent is give or take for the a lot of change in the figures we're seeing today and three is slide is the performance by

class and long term venture capital is a return driver and 15 percent for - one percent for growth and short termer headwinds we talked about the ventures as well. and our growth portfolio has the highest percent of apec exposure 50 percent is a window. and our best estimate for the performance in the portfolio is one .8 times excluding asian pacific. so a fairly meaningful note there and as reported across excuse me - across the time periods excuse me - >> slide three 2 the that i have equity in the that i have

portfolios and 2023 in line with the managers and slide three three covers of stock and distribution management. program spurs began working with j.p. morgan chase and over the long term j.p. morgan chase target giving those distributions what that means they they're goal to sell the stock we're distributed for the same value on distribution and long term lp averages 95 percent of distributed value in the last 5 year were a decent amount of market ability and expecting it to increase and note that the information on this slide is gross, you know, we have seen j.p. morgan chase in fees and april of 2024 market value was

sdrbtdz selling the stock is around $3 million. and like to hand to my colleague to walk you through this. >> thanks ed. >> good afternoon, commissioners.. and core investment portfolio and so to cover 2024 initiatives with the co-investments and portfolios developing we completed this in 2018 and we have one that i have equity team with the co-investments for and important focus residences leveraging the gp relationship with the pipeline and many disciplines on the investments portfolio construction and selection. and maybe to give an insight we

evaluate them we're looking at from the context of a portfolio construction. so when you see an opportunity and have questions we have this a portfolio based on what we're trying to accomplish in a geographic vacation (rustling of papers.) and other criteria. a second question we saw the manager to bring the opportunity is it a good flip for the manager strategy. and aligned with the manager in the transaction so the third angle we look at the evaluating the underlying company and look at that to come

up with the budget a lot of of insight how we evaluate on the next slide as you can see the state of current portfolio. right now we invested over $350 million and average check size is $16 million of of the 25, 19 are active and 6 - while the portfolio relatively young and still developing as you can see in the page it is performing. and our goal to build the program over time and having ongoing discussions with the team about the path forward there and having said that investing is the engine of our equity program and our top priority and maybe switching gores guerra quality meats to the twenty-four hour initiative and i'll do if i best not to

read everything but i'd like to say one of the categories i bring the initiatives and that's more of same category an important category but so have this interesting discipline approach to the private equity strategy and changing the pacing of more of the same and for us about balancing employment with allocating capital to the managers that is core to the private equity team trying to find do right balance and in portfolio monitoring and analytics it is up here to contribute to private equity programs and helps to drive the monitoring and ann logistics those - we've created a robust

process internally and monitoring and, you know, we have been pleased with how robust our marijuana conversations have been - more of the same categories and for a pipeline ed led by ed and the team spent a lot of time there and as you can see building out the private skwaesht is a multi process and we're happy to see that that we're seeing attracted and actionable opportunities come out of that pipeline building now and so that is progress. and then obviously in

europe, cambridge benchmark and looking for opportunities to see if there are opportunities we can take advantage of and, of course, we spoke about the investment program and great questions. that's, you know, that concludes the remarks as a private equity team and any questions for us at this time we'll hand to over to cambridge for the next slide but happy to pull the cambridge presentation for questions. >> questions? >> i have a question. >> after. >> good afternoon commissioners. >> can i turn on your mic.

>> i i have prepared remarks and focus think planning the review of permit equity market for the next slide. and talk about our outreach the record breaking years we feed it to slow down in 2023 and the slow down cabin in the second half of 2022 the market had unremark performances and activity last year a public market is having a sharp rebounds for the - and private performance trail but over the long term private outperformed if i look at any period three years and longer than privacy privates have -

fundraising and activity across the board from the peaks but down from 2022. this was in the environment had higher interest rates and linking challenges and exit market and go political risks the market remains uncertain and inflexible, however, we are cautiously optimistic and likely to decrease and public markets surge the economy has been stronger and a lot of dry powered out there we reached the new high in dry powered some of that is old and pressured to deploy we prefer. we continue to have high convictions with a long-term driver the portfolio and important to remind that in

time like these private equity in those years coming out of downturn have performed well owe with class managers able to navigate the uncertainties we believe that we are in a good position with the current portfolio. and. next slide, please. on this slide we see how the private markets work and fundraising on the left and investment active activity on the rights down from the 2021 team and any back to 2018 for fundraising we saw this for bigger established players and half the raise for the buy out funds were raised by 20 gp and gremly asia was down for the

most for fundraising and invested capital that was effective by the geopolitical tensions with china on page four and the biggest issue in the market the lake of (coughing) on the left we see that the - fallen off the cliff the main reason fundraising has slowed and we waiting for the distribution to normalize. on the right we show the time to recover the time for recovery for venture and private equity in the chart refers to buy outs and grow equity and the public market the turn starts quarter q one 2022 was the start of correction and here the public market in gray had the sharpest decline and fast rebounds in

blue had three downturn before bottoming out and venture in green had 7 down quarters before flattening out and the perimeter numbers are showing that venture is slight up and historically the private investments recover slower than the public in slides of rebound we say this not a we building a short-term effect and that will still out perform and page 5. this is the private capital overhang we reached other record trend equity for buy outs on the left and venture on the right and as you can see in both categories this is the

driveway powered is concentrated with large funds meaning that slower funds are less dry powered to chase the deal. on the next page another view of the evaluation this breakdown by venture year and hospitals see returns as of december 2021 compared with returns as much december 2022 and 2023. and venture in green is down the most and the most recent ventures across private equity and venture capital are hit the hard those ventures will have more with investments made in the 12 year of 2020 to 2021 for the next page in the long term we continue to expect private cb a stronger distributor and the

long terms returns across private equity and venture capital. and they are in the mid attendees that is reality but the mid-teens return this is very good and provides an attractive premium to the market and move to page 8 this next slide is the private equity is coming up and the point is we want to emphasize the importance of staying the course if you can and continuing to make investments during tougher times moving to page 9 with the specific performances with the private equity has out performed the benchmarks over the longer term period. i should point that out in the shoerpt or short termer sensitivity and if we

show you the numbers as of one quarter prior after 5 years numbers will be a benchmark so rolling it to q-4 for december of 2023 numbers we lost a really good quarter and bad quarter and got a really good quarter within the public market. it is a marker and page 10 in terms of sector performances and here we observed that it and healthcare investments are strong performers across the cycle and underlying risk in the non-cyclical nature has resilient in bad? why you're portfolio has a - and we've been adding for the healthcare exposure as well and on this slide show another benefit of private investments providing

differentiated exposure of number of the public companies in the universe we get access to smaller companies. on page 12, as i mentioned, privates show you can't why we show growth potential are available for private investments that led to out performances in returns on the rights over the longer term period on page 13 i'm here we have the broke down by fund size the dispersion of returns and the point if one is skilled at managers on a smaller end those managers have the most

outperform potential on page 14 managers selections remains as critical as ever today selecting managers in the it up two makes a big difference in return and finally, on the last page 15 we believe a need and continue to cultivate with new managers that make a portion of town performers in any year up and the appendix highland observations of this portfolio where we are focusing for the program and in shorter we think the portfolio is well positions with the strong proctor as a manager relationship and important to know the portfolio tilts and continuously we evaluate them and took advantage of this lower challenging fundraising to get access to previously access to the managers that are now willing to

have conversations to develop the relationships with emerging and smaller managers. and we believe again managers selection is critical as ever (rustling of papers.) we on you have a team that whether work well with that, i'm going to turn it over to tonya and open up for questions. >> any questions? >> thank you for is presentation very helpful and one of the questions i was hoping i could unpack a little bit how some of the strategic allocations decisions were impacting the ability to execute we hear about opportunities that come up and a long timeline and prepared for that and because of great success that we had in private equity and with the donate narrated we are - can you

talk about how you had to adapt for the new framework and necessary struggles or challenges that may be presented as a result. >> um, i think the key thing was long term asset classes is to plan ahead and we know we need to get to in 10 years from now and starting to make smaller marginalal changes. we prior to the degrees in long term target we're going maybe $1.2 billion and now at $1 million it is manageable we can manage relationships and communicate with our managers and we know what we can do to plan ahead and right now you combine that with

a challenging fundraising environment we are continuing to reduce this i think right now has been very, very manageable yeah. >> um, and the would add to that every decision a multitude of facets to continue we're when managers are fundraising is this a good fund? where are we in pacing and think about all the pieces together and the team is doing a good job if tomorrow we want to bring down the allocation for the performance will suffer long term so we need to balance and one area that we had more conversations around tonyas point private exasperate

shouldn't be considered is source of liquidity we know that but recognize we want to bring down the allocation over time so we do want to consider we're looking at managers how essential been sdrisht the cash and the opportunities cost of continuing to put that capital to work in this class had that opportunity using a source of liquidity last not changed that but definitely part of conversation to think about what they are doing today in long term. >> i guess this is a photocopy for this is a little bit more targeted towards a liquidity role and the public has help on the liquidity side we we are counting for the liquidity by

private equities not in decision making 0 process. >> the source of liquidity no, no expectation we feed to liquidate the private equity do the benefit payments. >> great. at the. >> yeah. >> thank you for the (clearing throat) and particularly to make sure pages three three and 36 and i'll come back to ask a question i want to focus on the performance and the premium is it to the lp is it linked to the

lp my question is that that net is that net distributed or how the manager's report the portfolio take a hair cut with the premium for the fee and the carry? >> [off mic.] >> it is unrealized and realized. >> realistic what we expect maybe up and down a little bit and our performance numbers are the same. >> thank you so on page 20 the performance focusing on columns 4 and 5 in the 10 and two year number and with benchmark captured in there the question is then the third line p value added three years down years and tight years by the question over

the long terms are we getting the liquidity premium or for the. >> since the inception we got the premium number it is since the insix-pack a one hundred base points which is part of benchmark and going forward should we expect that liquidity premium. >> that is is anti look you are. >> i hope so from changes to period to period most investors will consider three hundred base points reasonable for the liquidity premium but do you

have a commence. >> what is missing from this report and in different years. has to do with manager selection since in the area not about stocks but about the manager selects and on pages 13 or 14 the cambridge return of private equity is higher than the public like three or four years higher my question is charts were used to get grapplely how they did - since we're going to do more i

think ceo and cio reported by the quantitative analysis for the decision making that was what i was driving at. >> we have the data we can include it is feces any during the volatility period we realized there are distributions but different approaches how managers value their portfolio becomes a little bit challenging to make those decisions always about the valuation policy we have the data we can bring it back over the next meeting. >> we'll come back with more data one way to get at the question without specific details you are requesting to look at pages 19 and 20 together

we look at the performances compared to the cambridge benchmark can be thought of as the managers our ability to beat it this managers we those decisions have resulted in performance that exceeded the opportunity we added the liquidity premium to out perform the managers to anti perform the liquidity. >> obviously more data i want to see that brought back and reenforcing the staff recommendation and this is not may not illustrate that point and make sure i'm not asking a question that might turnout to be embarrassing but within the co-investment decisions it justin did all the work on i'm

curious i don't remember the name but how is that performing? >> done about two or three three or four or 5 years ago. >> two or three times. >> close to. >> (multiple voices). >> almost thirty percent. >> that's great. >> the caveat that is unrealized a- >> (multiple voices). >> and looking for an example a significant piece of co-investment you plan on doing work more than lulled on page 36 thank you for is good news. >> you're asking about the specific deal that is included in the active performance on the 25 page. >> happy to walk you through that. >> we've happy to walk you

through any management deal. >> present of curious questions but don't want to ask them few for the board meeting we'll follow-up. >> great. report and appreciate it any further questions? >> if not. thank you. >> thank you. >> bring it back to the commission. >> >> need a break a 5 minute break. >> we're going to go into a 5 minute recess (microphone feedback). >> any follow-up on this item? >> seeing none,

line? >> madam secretary, there are no callers on the line. >> hearing none, public comment is closed. (microphone feedback). >> okay. let's call the 5 mi (short break). >> we are recording open session you may begin. >> call item to december 2024, public retirement conferences and training programs for sfers trustees - nossaman llp. and commissioners you'll find in the materials the standard item the ford calendar for the remainder of the year we elected or established the new committees for this year i'll work with each committee carry to set an agenda and once that is complete will be a report back to the fill board will appear on the calendar. as general reminder

that ruled in strong attendance and set the schedule for the year. um, two weeks before the meeting had reach out to confirm the attendance and a no for quorum purposes to the extent having a quorum issues the applicant of vice president what step if i appreciate the commitment for everyone to attend the meetings and continue with that prosecutes going forward and includes ama to have committee meetings on wednesdays for the board meetings. >> um, the final item before the ceo report is not included in the materials but wanted to update you that the various charter amendments proposals were presented to rules committee on july '89 the past pond. and there are an amendment to proposals which will be heard

next monday at rules committee. it would go before the board of supervisors on july 16th and approve there and go on to the voters in november. the amendments came out of rules committee forefronts no impacts on the costs no changes for firefighters that costing was done in three pieces because several commons of proposal the last exponents of that was changing compensation to earnable or is amendment we put forward not move forward with that change we don't need to reissue a costing report by the

change i'll continue to keep you posted at the reich's next monday. >> i want to jump in terms of of what we did requested to do a study by you are x commissioner savvy i paid the of in terms of being the subject matter stewart and going to the resources to review the finance issues involved and so we did with our ceo controller and that is work in progress but just thought we

will be appropriate to advise this was in the process. >> a any questions? >> i want to thank um, the ceo/cio for the work in getting our committees on track not only convened the meetings a challenge in the past so i wanted to vocalize i appreciate the effort put in there and part of that is standardizing the meetings to a wednesday slot like that i think that is helpful in creating a plan around the structure around that thank you for the work you and your team has done to make sure we have quorum at the all the meetings. >> okay. >> as for the issue of. >> sorry.

>> committee meetings. we had we had one governance committee meeting and cancelled 6 or 7 of them for attendance problems hopefully not happening in the next fiscal year that year was a tie with the year before that and better than the two years before that. >> noted. >> (clearing throat) finished. >> any further questions. >> if not have public comment please. >> do we have any in-person comments? seeing none, moderator, any callers on the line? no callers public comment is closed. >> okay. item >> okay. item 13. >> 13. chief investment officer's report: exhibit 1: performance and market update, exhibit 2: plan value report. action: this is a discussion only item. >> commissioners as usual included in the materials update on performance we have $35.3 billion in management and

want to spend a minute ford to for the record. i know lots of eyes on those numbers particularly in the fiscal year those are preliminary and that given the plan large exposure to private market there are lags in evaluations and those numbers at a differ from the actual and final audited numbers. so whoir in september provides an update on and have more complete information and work with the auditors that come out at the end of year the preliminary numbers i see are not used to make official decisions bike

cost of living they're only to give the board and others the direction of our performance. with all of that said our one year stoechltd performance is 7.9 percent that the actual rate of return and the long term estimate is above that a long-term return is 7.9 return is above that and not going through the performance (rustling of papers.) love to see that for those echoed folks tuned if i imagine they're listening i appreciate but the one they want to pay attention is the actuary one at the end of the year or beginning of next? >> most typically, we'll use

the audited financials and that is around the time we'll see it? >> published? >> and end of the year or beginning of next. >> calendar year. thank you. >> any further questions? >> okay. >> public comment please. thank you. >> do we have any in-person comments? no callers on this item. >> item 14. >> public comment is closed. >> you want to call plan calendar: san francisco deferred compensation plan monthly report staff memorandum action: this is a discussion only item. >> thank you. >> afternoon commissioners keep it vie short three very, very quick updates ignore you before you the monthly activity report i may notice this is the first time our assets have crossed one million dollars one

targeted funds we actually experience 25 miles in out flows in the stable value few minutes our stable vow the q-3 rate that is guaranteed for all q-3 that has increased by 6, fifths so this rate a guaranteed and will be reset. a small typo on the cover sheet says q-2 really is q-3 apologizes and the last update for you, we have our target mail mitigated negative declaration direct mail we address 5 cohorts and message them with a call to action for example, about to retire we tell them to stale in the plan i plan to conclude samples in my full report next month for

november 4th that is that's all i have to say and i'll be happy to answer any questions you may have. >> why think i've every con this i appreciate the news you put out it is pretty quick and council. >> thank you. >> and any applause. thank you. >> i appreciate that. >> we don't give out any pins through (laughter). >> you want pins. >> that's right we'll get those next month. >> okay. any questions? questions or comments? nothing? >> public comment please. to public comment and no callers public comment is closed. >>

>> next item. >> next item. >> 15. retirement board member good of the order retirement board members may request that any matter be calendared at a future meeting. all such requests shall be calendared in a reasonable time. (board operations policy 24.) the board will not discuss any items requested to be calendared until a subsequent meeting when the matter is included on the agenda with the required public notice. action: this is a discussion only item. >> i i hope my only hope and we go to next year that all the commissioners are as diligent as they have been on attendance and especially in committee and port of staff in terms of of what we do, i only one with request but have to say that we have playoff people coming in that don't work for us work for us we're paying them but we got to sort out this ab system. >> we have to. and we're no we hear this story so much i'm not blaming this not on you

guys. okay. but we live in a city that is the heart of technology. and we are counting that in the press and that's a positive in the elections and everything. and we're running 20 or $35 billion again in the city and you guys you are doing a great job everybody is going a great job but we address what we're doing and just comes off bad. i--i don't know where those in touch with our constituency that are interested listen and tune in whatever hopefully they're not managing what these guys are doing. >> why have the answer. >> good. >> and was a problem it is not. >> i suggest we could move to

tv. >> i'll probable find one, too. >> enough of that gentlemen's thank you, sir, any anybody have any item? >> okay. happy july. >> happy [off mic.] >> we have no in-person public comment on this item and no callers public comment is closed. >> all right. next item. >> >> 16. adjournment. thank you. thank you. >> thank you, jen if a. >> thank you

>> my name is alan schumer. i am a fourth generation san franciscan. in december, this building will be 103 years of age. it is an incredibly rich, rich history. [♪♪♪] >> my core responsibility as city hall historian is to keep the history of this building alive. i am also the tour program manager, and i chair the city advisory commission.

i have two ways of looking at my life. i want it to be -- i wanted to be a fashion designer for the movies, and the other one, a political figure because i had some force from family members, so it was a constant battle between both. i ended up, for many years, doing the fashion, not for the movies, but for for san franciscan his and then in turn, big changes, and now i am here. the work that i do at city hall makes my life a broader, a richer, more fulfilling than if i was doing something in the garment industry. i had the opportunity to develop relationships with my docents.

it is almost like an extended family. i have formed incredible relationships with them, and also some of the people that come to take a tour. she was a dressmaker of the first order. i would go visit her, and it was a special treat. i was a tiny little girl. i would go with my wool coat on and my special little dress because at that period in time, girls did not wear pants. the garment industry had the -- at the time that i was in it and i was a retailer, as well as the designer, was not particularly favourable to women. you will see the predominant designers, owners of huge complexes are huge stores were all male. women were sort of relegated to

a lesser position, so that, you reached a point where it was a difficult to survive and survive financially. there was a woman by the name of diana. she was editor of the bazaar, and evoke, and went on and she was a miraculous individual, but she had something that was a very unique. she classified it as a third i. will lewis brown junior, who was mayor of san francisco, and was the champion of reopening this building on january 5th of 1999. i believe he has not a third eye , but some kind of antenna attached to his head because he had the ability to go through

this building almost on a daily basis during the restoration and corrects everything so that it would appear as it was when it opened in december of 1915. >> the board of supervisors approved that, i signed it into law. jeffrey heller, the city and county of san francisco oh, and and your band of architects a great thing, just a great thing. >> to impart to the history of this building is remarkable. to see a person who comes in with a gloomy look on their face , and all of a sudden you start talking about this building, the gloomy look disappears and a smile registers across their face. with children, and i do mainly all of the children's tours,

that is a totally different feeling because you are imparting knowledge that they have no idea where it came from, how it was developed, and you can start talking about how things were before we had computer screens, cell phones, lake in 1915, the mayor of san francisco used to answer the telephone and he would say, good morning, this is the mayor. >> at times, my clothes make me feel powerful. powerful in a different sense. i am not the biggest person in the world, so therefore, i have to have something that would draw your eye to me. usually i do that through color, or just the simplicity of the

look, or sometimes the complication of the look. i have had people say, do those shoes really match that outfit? retirement to me is a very strange words. i don't really ever want to retire because i would like to be able to impart the knowledge that i have, the knowledge that i have learned and the ongoing honor of working in the people's palace. you want a long-term career, and you truly want to give something to do whatever you do, so long as you know that you are giving to someone or something you're then yourself.

follow your passion and learn how to enrich the feelings along the way. >> (music). >> hi, i'm emmy the owner of emmy's spaghetti i offers working that with some kind of fine dining and apron and feeling stuffy and in the 90s in san francisco it was pretty pretense in a restaurant in the restaurant scene i want to it have a place to have a place for my friends to guess i started the restaurant a no better place

the outer mission spaces were available that's when i opt in two 10 he start with all people and work with them and the events they create one of the events we do every year and backpack give away and give piaget away and a christmas part with a santa and bring 5 hundred meatballs and pa get and we're like in the mission not about them knowing where the food comes from but a part of the community. and my restaurant emmy's spaghetti and fun banquet and san francisco not the thing that everybody knows about we stay under the radar we show the

showcase i take it food and we started to eat we wanted to have comfort food and that a claims friend from i take it and helped me create meatballs and dealing evolved over the years in the beginning one plate of spaghetti and a meatball we tried to make the portions as big as they could be. and now we have quite a few types pasta dishes with a la begin and meat sauce or have a partition to a lot of food we are at a point with all the favorites i don't change the menu often 0 i eat here so much

but everything is fresh your cocktail menu is the best it's ever been one thing on the menu our magazine ghetto we change the flavor one of the fun things it is served in the historically we're known emmy's spaghetti as a friendly place and when i opened i wanted my friend to be welcome and other parents to be welcomed and it is very for this is a place for families especially in san francisco and this is where though hold their celebration important i mean you're coming to a family restaurant and you're coming for o to a fun place i love being the owner and pretty sure my life i enjoy running the psta spaghetti place i hope to be

here a while we'll see how it goes we everyone is a friend we're hoping you'll be a [music] since the opening on third and mission in 2010 the grove is a epicenter. tis is part of the community. we bring tourist, we bring convention ears and have a huge group of locers who live here. we are their living room and love to see them on a regular basis and seek newcomers to the city of san francisco and serve them a good dose of san francisco hospitality. we make everything in house

from scratch every dape we vahand carved [indiscernible] the chicken pot pie we serve probably a hundred thousand if not more. roasted chicken, prime rib, salad[indiscernible] coffee cake and [indiscernible] all the pies are fresh baked. the home made cookies are done, once, twice a day, depending how fast they go. we believe in goold old fashion home cooked food. we want to be a welcoming, warm hospitable place for everyone to come and hang out. respond time with friends and family, meet new people. have important conversation. relax and enjoy, rejuvenate, get restored, enjoy one another and the at mus sphere the growth. the grove is over 730 to 830, 7 days a week, breakfast, lunch

and dinner.

>> [drums] [applause] >> good morning everyone. welcome to chinatown! [applse