policy is not harmful the burden of proof falls on those taking on action she said she didn't hear why those funds are good for us in terms of the principle in the city and county chapter that is our responsibility i know that the city and county doesn't follow its rules but as a member of the system i'm sxhiftd i do this and also in terms of investments i was online a lot after reading that warren buffet thought it wasn't a good idea and after the reading the article cal which is like another public agency which is a huge $300 billion fund of

public servants so to aspect and retirees they dumped the hedge funds and listen to air m e o had had a great presentation his comments were they were too complex the fees were too high, and the yield was low, they weren't transparent, and they couldn't follow or track them very well so they get rid of them i mean this is like a good example of something to compare i suggest if you haven't seen this manager you should listens to him anyway it is also another thing your mission statement it says that you have to or you want to

protect and preservation invest the pension trust assets and promise benefits of the active and retired members of the san francisco ethics commission i don't consider them as a member the hedge funds proof of investing if somebody came to my door i don't have any money to invest i'd shut the door in their face. >> is selena followed by david. >> silva sorry. >> it's silva just for the read i'm not i i'm not it's in the minute i ask you amend the october minutes i submitted a

petition signed by the members 69 retirement system opposing investing $3 billion ufo our money 0 into hedge funds on wednesday november '52 other members and myself met with jay and bill we didn't get the message it was scheduling cancels they shared their how did are the see hedge fund i was quiet and left hand and left hand it became clear their experiencing tunnel vision and not he presenting out methods of protecting our retirement fund go like high-risk hedge funds the retirement board is being present with one option that's with hedge fund they met with the mba and the local 21 and others net to the best of my

knowledge they've not have they respond to s c i u letter right leg a response to their questions and answers to their suggestions no response whatsoever from this board mr. bill one of them requested a suggestion that 1021 made to you was they requested an independent consultant to prepare a report other options for retirement funds to utilize to protect our retirement fund and local 1021 who represented e.r. represents over 14th thousand members has yet to get a response that's troubling we're the under aspirins over 14

thousand members honestly it is reprehendable and now since we have 14 thousand people and you have their monies actually, it's our money you shared no responsibility you can't possibly excuse me. last minute and last word what is the rush what's the rush to do this herb has e-mailed you and bill subsequential evidence that constrictions the way that hedge funds are the only way to protect our funds i'm not an expert but hedge funds are risky if we're vfdz did state says to stay away from hedge funds and they pill out linen to all your members. >> thank you.

(clapping.) >> david williams. >> good afternoon commissioners david williams retirees i want to thank all the brothers and sisters and fell members and city workers with are be standing up and so to speak out on this issue there will be many more to hear from in the not so distant future you've heard what i had to say i'm not going to reiterate i suggest i saw an article yesterday in an investment magazine suggesting portfolio managers are getting a 4 percent raise i don't know how accurate it would be nice if we get an 8 percent raise i don't think that the hedge funds investment it part of that plan

i question who's really profiting from all of this likewise i question why we're going into as to how new strategy when to me the system is not broken we're talking about fixing a system that's not broken edge area of investment we think we need to be thinking much more seriously about why we're doing it we've not heard anything why we're doing this it is a hedge against the downturn in the market we come back without having to do risky things if it ain't broken do fix it (clapping.) any other member of the public would like to address the commission were welcome claire.

>> i made it just in time representing the retirees of 71 we had our general membership he meeting we had a speaker who was neutral and talked about the the hedge funds and basically said recommending e recommended that if we were going to attempt any of this we consider a much smaller portion that he was greatly disturbed he studied cal and is well known in california and study unless a member of the commission, the public, or staff so requests extensive and said if we do something take a little bit and try to out and see how it goes no invest 15 percent that's dangerous and suggested that some very extinct consultants be hired several back east no one out here there

was interesting to our mini yet when the petitions were circulating i want you to know i circulated both a yes and no there are was an overwhelming response that you have this item on our agenda so you can see that its members who are puc out and i'm getting e-mails from members green across the west coast so it's not just the few of us that appear before you but our members that pushing on us and asking us to be their advocates here in front of you and to tell you we're representing thousands of members that are very, very concerned and i think you you'll know and if you don't this is the first time that members have become so actively involved and

adamant about business before this board this should grab our attendance and help you understand we've not woke up because none of us are finance and investment exerts but it is impacting our lives and has us worried david said 8 percent we hope for one and a half percent so we're not being greedy thank you very much. >> thank you any other member of the public then first on my list is congratulate supervisor cohen in her re-election for 4 more years in representing san francisco congratulation (clapping.) i like the commission to know that our executive director is preparing a rely to the s c i u

letter hopefully distributed by december one being that the special meeting is december 3rd i would like to continue a few items today, the first one will be the minutes commissioner my beggar has in addition and the number of signatures to the petition and the minutes more dlabtd on item 4, 5 and 6 i'd like the minutes to expand on angeles investments comments in item number 6 and there was a statement presentation by commissioner driscal that was not included in the minutes i want that uploaded and continue item 5 to the december 14th meeting and item

14015 to the call of the chair. >> number 5 is continued. >> until the december meeting 13 and 14 to the call of the chair could you please a call item 2. >> there's any items anyone wants to pull outdo that now. >> i move we adapt the consent calendar is there a second. >> quick i will now opening it up for public comment for the consent calendar seeing none, i'll close public comment all in favor it passes unanimously call the next item, please. >> item are there others who wish to speak. >> okay. the chair will accept

it as presented until the commissioner wants to add thifrg anything fantastic opening it up for public comment on item 3 seeing none, i'll close public comment could you please call the next item. >> (inaudible) thank you. >> thank you good afternoon board menus mentions a minor change and recommendation in the guidelines and i'll ask mr. shaw and the lady to briefly explain the rationally. >> we're asking for an increase in the range of 035 to 45 to 60 this is the expansion of the names of names their target go range is the market range over

$25 billion sense we've hired them it is has moved in 5 hundred and 40 names fear asking for bandwidth to better take advantage of the opportunities thank you. >> i have nothing to add. >> i will open up for public comment on item 4 sierra club i'll close. and >> i'll move the adaptation of recommendation and any discussion. >> can we ask questions. >> sure. >> this is in age let me see reporting on the bottom of the page regarding china no addition for the market to have a more placement roll in china can you expand on that it is constructive expand. >> november 17th monday it was

posted it was mid october i think this is in the memo that the shanghai correct with the 3 hundred only available to u.s. investors if you have a x c license they'll be trading in hong kong and available in our portfolio very good. >> for monday. >> i'm looking for mortgage our saying up to 60 names would you like additional flexibility beyond 60. >> we expected 50 if they want to go higher as proposed not guidelines they're seeking to get for diversification. >> they're allowed in you take a look at the guidelines they're allowed to own up to 15 percent

they have flexibility. >> any other questions or comments seeing none, all in favor, say i. passes unanimously call item 6 please. >> thank you, mr. nick evens and board members turning to the staff research the initiatives a couple of things updates on previous items that were in closed session in september at the september board meeting the board approved a multiply venture capital it closed on october 15th at the october board meeting it did close i should note somewhat a smaller amount than we asked for up to $35 million to close at 36 meeting and the october meeting

it approved an obligation a special situation strategy this accident close subsequentially severalty weeks ago and it closed i believe our investment is $2025 million and hon company in september the board approvals up to $50 million in an asian backed beauty strategy closed on october 4th are there any questions on the 3? yeah. 5 up, 50. >> board members i am particularly delighted to announce the postponement of ms. u.s. ma question as the senior portfolio manager she's served

as an analyst on our team as spurs for the last 2 years 9 years total and other years anothers morgan stanley this was a vigorous and competitive process that included 3 interviews as well as written materials ms. ma just distinguished home sharer for several reasons she's a it starter comes with her a game everyday and the second she's a great research third is she conducted extent e excellent due diligence on strategy whether things eunice is on it the next do i day she's on top of things and she's a team player that was not an

automatic promotion by any medians it was competitive is he distinguished herself for those 4 reasons and jason l i'll invite you to make comments. >> i was delighted to interview eunice and she's joined the sf team in the last year in 2013 and progressively herself to say a be a variable asset i'll reiterate this was a rigorous process kind of an interest if the position from cross the united states so again, i'm very hemisphere to welcome eunice in a new position on the team and she's got a lot of work cut out for her going forward. >> eunice any comments. >> thank you guys for the kind words and grateful to be given

this opportunity and have worked very hard since i've started at san francisco and will continue to work hard if not harder in my position and thank you guys again for this wonderful opportunity. >> thank you board members any questions? the recruitment on our two - yes commissioner driscal >> still going on. >> i'll wait until our finished the recruitment for the other two position it is advancing and continuing its just time consuming process so i think one of the two most important things we do in addition a hiring managers we hire our team they're the ones that add value down the line we're being pursuant and thoughtful towards

that regarding the current market we all took note i believe the market volatility and the quick snap back the end result we ended in the exact same place if one had not noticed over 6 weeks it would be been flat but it was noisy you up and down both ways i'll note what is beyond the 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