report the job numbers the sheer number of job numbers creation has been good actually, the new jobs for the 12 months is the highest since 1999 quiet expressive that's good it brought the unemployment down the worrisome part it is the make up of the jobs a disproportionate of them are going to lower wage jobs so we're not seeing much in the way of job growth that led to more enduring and more confidence in enduring economic growth so that is that's on the positive side there's the one for about but it's good we're creating jobs you down side there's no wage growth with the unemployment rate as dropped

with that, i'm i'm going to turn it over to the board. >> under items 12e for putting in the website for those two investments people have been making statements when we go into closed session we report out and lead you to information about who we involved with we're will parallel statements about why the board is unresponsive sometimes we're not lout to explain but 1922 one example who we allocated to in case our interested if that investment system and thank you, sir for including that website for all the members to look at.

>> we'll make sure we do that in the future the honeyic investment we can provide to peop people. >> i did not see maybe noting i'm not looking in the right area the real estate investment sheets one through 3. >> i broke it down. >> as the same below the equity and am i not seeing it i see it 0 no, no still. >> are you talking about the global. >> the private real estate. >> give me one moment. >> commissioner other than the second page if you drop down to total real assets. >> right so you're not listing

out each manager. >> no, i don't believe we've ever done that. >> i'm curious. >> only in quarterly rorlts. >> expectation of the portfolios august or september it recorded a single line item. >> i'll get those for you i want to take a look at them and two just refresh me and aging let me see help here remind me about the difference in the mayor eric garcetti market mrpgz we have a nuance on laundry and roll call ton and capital we have 5 of them remind me you don't need to go into detail only the ding difference. >> laundering is on the value side and concentrated e m manager wellington plays the

opposite manager that's typical for wellington and d f a both their portfolios are middle the road to more court but the smoke cap that's been a gap that was filled when we did our research about two one half years ago that's the distribution. >> and cap guardian i apologize. >> cap guardian is like. >> left lane ton they have a large number of security. >> it's no our memo it's more diversities than laundry it's one hundred and four. >> it's not just they have more securities they're not valued are they - >> wells fargo ton and modus operandi run will be similar and cap or can capital international

they'll have tilted as bob noted and the manipulative for quantitative approach they have as bob said one of the small cap that is another value to the overall e m management line up. >> call item 7. >> the first committee the committees met on october 15th to discuss the following issues as of the minutes the primary issues on the at the other end of the table were to review and approve replacement of tim with

another fund by the manager and currently, the plan has about $273 million with 10 percentage of the total funds the plan fund seats with tim could so given the fact of the dpooch of mr. gross and the instant alienation within the fund we felt it was pursuant to look at the watch list for various reasons but i guess with everything that is going on and with the dispatch of blood gross they continue to liquidity but beard is a strong local manager that has been around for 24 years and given the performance and the track records it's a great recommendation the other thing those structure of tim could

they are currently at 46 and beard is thirty basic points the other item that was talked about the recession of guidelines those were for the stable guideline for the docket and prevail this day as well and to eliminate the mid cap value and we've talked about this in detail about 3 meetings ago and reviewing all the funds structures it is to do as well, the f one, if they can get to throw a account if you want the funds put it throw the brokerage part it's at option given the fact that we're downsizing and i

know there was some mr. smith said if you want it we can get it but it's eliminated directly other thing the review of gold makers and they're leading on december 3rd we'll review a current mission statements that's pending we're in the process of rewriting and talking about a mission statement that will be reviewed and approved and going up for the board approval so again, the major items the replacement of tim could and the revised billboard the mid cap vail and growth fund it was still an opposite to get those funds and review and update the

implementation. >> sorry someone cell phone is here it's an apple i wanted to public comment that a member contracted me and deferred a second most important benefit that a lot retirees rely on especially early residencies an member contacted me and indicated a representative from capital was trying to get the capitalizes from our defendant's next in order account to a best estimate professionalism criminal e credential plan when that individual indicated concerns about the performance those are the kinds of things that are disturbing because that impacts the ban planning and if that's some kind of ongoing practice known or unknown it could impact

the fund and there's only one that came forward but that greatly disturbs me because basically trying to undermine your compensation so i thought i'd bring that up to have someone a lot into that thank you. >> first of all, thank you for your presentation i appreciate it i wanted to know if you can expand on the watch list how long has been on the watch list. >> what the reasons for - >> well (inaudible). >> but they were not triggered for performance reasons it was - yes, that's in the record for

the general fund. >> i want to address the events would it be better if i brought that up for the next item. >> so summarize the turnover and the liquidation in the fund. >> you mention about 2 hundred and - >> $73 million. >> okay it's - thank you. >> commissioner. driscal manager is he aware the situation that ms. lance sky raised. >> i'll follow-up on it. >> you'll follow-up on it? thank you >> you and i can talk off-line and we notified the board but as an interim since julia has left

i've appointed karen by deputy director to cover the policy side we've asked maria newport to help out and cover the customer service center of the coming so if you have issues please refer them to maria or directly to karen or me. >> she's not. >> she's not. >> i think you've met her once when we did the strategy plan presentation i'll make sure she comes i want her to meet the board sure. >> anything else? mr. chair >> could you please call item number 8.

>> good afternoon, commissioners karen deferred compensation manager i was going to do summarize the reasons for the replacement of the pimp could total fund but commissioner bridges did it much better the only thank or thing i'll add during the committee meeting there was a discussion of whether it might be pursuant to liquidate the assets before the november 12th meeting and after the meeting given certain news we had learned we were concerned that there would be additional liquidations that could impact the painter because we're talking about 10 percent of the fund so a decision

particularly after we learned foreclosed liquidating the holdings to move over two back and forth effective november 3rd and fourth that was completed happy to answer questions and obviously angela is here to assist. >> okay opening it up for public comment for 8 seeing none, close public comment and open up for comments from the commission. >> yeah. i have a couple i want to talk about the liquidation you mentioned foreclosed was liquidating assets i was a member of the fund as well the question those are bonds the most go liquid assets can you weaver in the fact of our apprehension

virtually a fund that is cash those are government bonds they can convert the manager can convert them into carbon right now. >> with with respect to the pimp could we have other pimp could holdings we're not talking about we were concerned with the large quantities of like dedication like 23.5 in october and in addition to ford fund swabbing had removed the fund from the target date funds we really didn't think that was in the participants interests to hold it when we had an additional to move into quickly

and save the participants money. >> yeah. when we talked about that really didn't seem like an upside remaining if the fund given the concerns and our right they are liquid and we didn't have the concerns we'd be the last investor now detain from $300 million from its peak and those subsequential you out flows for the ousting and teachers there's been a lot of high profile redemption the foreclosed redeems was scheduled to hoop the same day and taken place in looking at the best interests the planter not moving expeditiously what was the best. >> those are liquid securities what's the problem because

they're going to get notifications of allowed shuns they can facilitate the cash this is not equity you can't have a run on the accounts can i address that in terms of 6 if you see lick idiot issues what's the symptoms of the detain see of liquid shuns. >> it's true those are liquid they're not exclusive government bones it is not just you know very at this time securities most of it it they have lots of cash really what the concern comes down to say just to mitigate any reflexes from waiting tloo there could be -

>> i'm asking the lid it issues was the prices if he should. >> they performed in october. >> maybe this will help you had some city government matters at hand in there if you want to say awe nekdz next day from the program $25 billion a month with that kind of entities with the price of security change. >> or stay stoed. >> it's hard to know what will be affected they've under performed their benchmark. >> so it's that performance base changed 20 base point is it due to the performance or the $25 billion. >> that's hard to answer that.

>> we don't know. >> the market can't tell us that. >> we can't answer that. >> okay. >> on that side you'll see a distinction. >> i can say when you have the major public funds you have choices and if you have an option to opt out why not arrest secondly, why wait and take the risk when everyone is you're the last person out you know the liquor shuns are coming so tells us open that side and your question about performances because the fund is $170 billion and going down. >> just - >> unless you. >> i want to ask go ahead is it

related to this. >> go ahead. >> i wanted obviously the issue for major staff departures is a big deal the question he want to ask the depth of the bench if you will, and typically those companies have deep ventures so for example, some of the have you talked to some of the other managers for example. >> yeah. >> march or the other managers of this fund have you talked to those people to get a better idea and the way they handle the effects of the exodus for the pimp could and it's important as well. >> no, we know the bench is a firmer the people are the people in the business what's unique

about the pimp could fund it was murdering and bill great he's the credit guy and this good managers others portfolios not the trigger puller he's a seat those are the 3 replacement we think that creates concerns we don't know how those 3 individuals together or individually we don't have a track record in the interest of looking at the best thing for participant we thought we'll see how the track record goes and you you know we'll, of course, continue to follow this the most prudent thing to eliminate it. >> can you walk me through this in terms of you're asking for the revocation you talked about

the team being part of the team i don't know about it until i read i assume many others are not aware so in terms of the team who what other people are aware of it and what other people you asked just walk me throw the process it's unusual i've been on the board for 22 years? the first time we've seen before you were so walk me through this in terms of and it all evolved. >> the decision of pimp could. >> yeah. and why it happened on november 4th. >> angela and staff acted quickly and on friday we got into contract what staff and started a search process that is

idle in the memo started 11 hundred strategies and came up with a recommendation worked with staff and had the materials prepared for the october 15th deferred coming committee meeting there was approval the plan was to take it to the board and discussion of whether it was net tatted moving to the board we waited for the board we kept seeing more and more liquidations we thought in the best interest. >> as far as process goes at the deferred coming meeting there was discussion that asked the question is it prudent to wait until the board meeting we had no recommendations to wait but circumstances changes the committee made it clear to support the action to protect

the participants so with my authority of executive director when it was recommended to me we basically, i agreed to terminate and replace pimp could on november 3rd so that's the rest of the process. >> what i suggest and i'll conclude any comments in the future i would prefer if you would inform the board members of that rather than ask after the fact just going forward i don't want to read this on monday after a decision. >> can i have clarification are you suggesting you wanted the staff to ask for approval in advance or we're going to be doing that and notice in advance. >> i don't know if the board is authorized you need a special meeting i'm asking for a courtesy i didn't see. >> fair enough fair enough.

>> we'll make sure that happens in the future. >> i spent a fair amount of time talking with pimp could people i'm going to asked favor i think that will be interesting to see the performance dan i've son has been played as the c i owe and other c i os reporting to him the story i got inside and outside dean's performance was outstanding and basically beating on the income fund there was a lot of issues for the kind of people that were in the 4-year-old and 6-year-old are area been there 20 years for the performance and not given an opportunity to move up there was a lot of contention going on in

the firm maybe we've seen the performance maybe for us i'd like to refer that it is occurring for the last year but rather than having this happen now it would have been nice they had one of their fixed income people leaf and go to gm o the signs were in the working for quite a while so we probably should have been dealing with this earlier was one the comments made in the meeting we should have dealt with that a i don't know i thought that was a comment i made then and that's exactly

back and forth and back and forth and . >> it was mohammed. >> this was a big signal when mohammed left and bill growth and most people didn't look across so if you guarantee go back two years ago then it should have been pulled. >> now again, interestingly when you talk to a lot of people inside of pimp could mohammed had not been running the funds he was supposed to be managing hands on and all those things are a favor we like as the board try to get early so i know on the flip side we're making 24 move it's a great move to do this it is a safety move and people are saying i don't want to take a chance of the hours

but it is very well, maybe that the team of pimp could maybe better so the fact they've got facts from gm o and lost the staff and payroll came back and i think other people would be great to keep on top of that and see if it's stabilized. >> stabilized right we don't know having dan i've so on is now going to be running the firm and people say. >> haven't done that before and so we have to watch and see whether this new you know not star method but having a team they villaraigosa had a long time should produce a relative i think it's a good move and

definitely support it. >> commissioner driscal salesmen as pimp could has been going on for a couple of years. >> i remember when airbnb left and came back and left quickly again, that's one of the signals okay there are other changes another our last board meeting i asked that the issue of deferred coming because the said pimp could runs the management team they are different and mr. gross was key that change should we wait and have another board meeting no november that's the reason we dedicated to staff to act and they acted and the committee supported that versus waiting that was on october 15th and here with we are on

november 12th now i've been through other management changes, too, and when we he's we lose and we lose more than half the time we husbands. >> i support this move i think it's important to watch management we've been talking an allocation strategy and to wait for some of us on the board is usual for me it's not that it is liquid investment skerl we have investments it's about the fact there's been a sell off and potential 16th of marketing when there's a big sell off because management changes it means everything else is walking around