how does that work. >> as the city attorney. >> commissioners i don't believe there is a or could points awarded for that under state law that's prohibited but the board policy does direct that staff consider that factor but in the service provider selection policy but no specific weighing. >> i don't know which state law your referencing but certainly the rfps we as the city issued from the transportation authority there is a some relevance around the qualifications of those further stipulated and i believe the law is focused on local business status it's been changed not focused on minority or women owned and the processed here is slightly different base from a

city process this is a fiduciary board with an obligation to the board and funds so a point rigid point system may truant officer with the experience of discretion by the board as a fiduciary by picking the best firms for the system. >> i see okay. the other two classes is the lgbt seniors or a veterans i understand that's the system that sets up to exclude people as well maybe we can move this on. >> it has been moved. >> i want to address some of the progress there's been several board members that think this is the case in terms of not xhoud the pc a i think there is

an inherent bias they recommended this position the other issue i think there's going to be in inherit questioning of why we include someplace not hunt this has not references from public be pension fund no references from the pension fund and excludes someplace that a superb i think that that might be preserved the references are important if i were in mondays be shoes especially labor i'd like look at the references the endorsement and references and re789sdz are very, very important part so i believe that there might be the perception it might be bias because of hedge

fund any candidates would say where why are you including someone and someone he will that as a inessential is reputation. >> it is also i want to say for the record i asked for the score from the executive director and it was denied i wanted to mention that 3ub8 i want to ask pc a void the perception so that's it. >> is there a second to the motion. >> motion device if no second chair. >> i'll move we accept staffs recommendation. >> is there a second questions. >> does the motion include the

site visits okay second. >> on site due diligence which i building is a new part of the process. >> and reference checking. >> i ask we accept staffs represents. >> is there a second. >> second. >> i'll vote against i for the reasons i've stated. >> when we come up with the four would you walk me through 1 through 6 and see where they fit in the scoring. >> we kaunt can't. >> well, we have in the past. >> in a public meeting. >> yes. it was shared that they were very close or that the cut off point came because there's a gig eir big

differential that's how we arrived before so i'd like staff to giving me some type of cardboard how we came up with 4 that's not a magic number in the rfp that helped so is he craft a figure of 4 how did we arrive at that. >> i'll turn to ms. porter. >> the more information that's disclosed obviously the fact that the next steps of the evaluation process there's no hard legal rule around this this is a matter of bits judgment for staff on what can disclosed without potentially compromising the process if there's a general answer i could give that's within our ability to do so. >> commissioners and just to add to the discretion 80 took

away - we're the commission we're the final arbitrate and oversight of everything maybe the discretion should come our way. >> the work policy has death e delegated the authority over this delegation to staff i'd like absent an allegations of an unfair process obviously the retirement board has full discretion whether 9 process was complete and fair i'll say that answering whether the four were lumped together close or a clear break out might be general enough for a discussions rather than - and we coup with 4 we should know how that came up if staff were saying we want the

top 2 when i don't know how many players i get that but 4 we think that's prudent whatever you think i'm not taking our power away from you running that shop i have to be able to defend how e you arrived there. >> can i make - >> you're asking a process question to understand your reference to get them to explain the process as we can talk about the past we are going to focus on the questions i just want to know how we arrived at four if that's a magic number because not knowing a number of four i think it's fair to show how arrived at the number. >> i can try to help you

understand our process some factors that went into recommending those 4 one was certainly the size of their staff okay. >> the depth and breath of their resources the quality and the breath depth of their investment research the expansiveness of their allocation and ideas did robustness on feedback he regarding our existing managers staff turnover the whether or not they have their own in house manager research database, their own individual research or off

the shelf programs whether or not they have third party monitoring in item or things are in house that led us that their 3 firms that are quite large okay and there are 3 on that are on the smaller size ongoing there's a clear differentiation of 3 that have well over 40 and two of them have a lot less in our recommendation we want to evaluate whether or not we would benefit from the resources of a much for robust firm with much deeper resources compared 0 our incumbent. >> in that process how did the

magic four come up. >> there were 3 that are very robust and they're very deep and broad they have many sets of i'd say many subject they've included white papers on multiple multiple people in risk management risk allocation and research and white papers again the so there are 3 that are clearly quite large. >> is it fair to read into that that the 3 are substantially better in score. >> there is a difference between the 3 in terms of their results and has to do with the factors i've adu lutd to again, i can't say named but things

like turnover okay whether or not ownership, experience of the lead consultant and second consultant and others on the staff etc. so there is a difference between the four but we're not at a place to declare that those that have a higher score based on what we reading on paper that there is clearly one or two we're focusing on >> duo would you be kind enough. >> maybe i can ask jay or kate why whether or not that's acceptable. >> then could you walk me through and the commission how that punches on the other end

with the scorecard i get the asset allocations but we have 6 buckets to come up with the score tell me how that review falls into the scorecards and the separation with some number of 4 maybe 3 or 2 i haven't reviewed the rfps. >> the rfp sets out different sort of general categories with regards to evacuates criteria and i'll be resistant to go into the sub cargos on the scoring eric mar there's a potential that may allow the proposers in the next steps of the process to tailor how they present

themselves or respond to staff or make the playing field not fair. >> are you sharing with us there's a lot of charts versus the cargos everyone i've seen has a category with no subsequent sections. >> i haven't seen the scoring eric mar but certainly certain questions go to certain categories of the process so clearly to the properlyers they're able to scombrauft how they're responding in the process in a way that gives them an advantage over the other propers. >> i'm asking any specific question on any bidder i'm asking the staff what they did and how they did it everyone is

trying to wheel in how we release information about those bidders versus understanding the process. >> i understand you can ask the questions so staff can answer we're not trying to help propers in a way that advantages them over the 09 propers. >> question about the front. >> you can tell me if you cannot or can't answer this. >> i see you're waiting percentages and you use those to determine who got in on the top 4 with each percentage did you then allocate a number one or two or. >> we didn't range them 19 or 6 we gave them a percentage of the

25. >> okay. i then write them 25 down and each one ranges and you put them altogether okay. >> on those that i know them all it looks like there are 3 with a very big beverage big staff and then it looks like one has less than 75 people i took the small group and picked one or you discussed they were going in because a because their itself existing consultant and they were not thrown in because they're the existing consultant they have a track record for serving over 20 years and have result in they engagement and

awarded points for that fact. >> okay. okay. just because i have known each one of the firms i have to say one of the advantages that i see and i've seen at the board is there a beverage if they have over 2 hundred people and need a lot of staff on issues it is different than people that don't have that in my experience i've seen other boards let them go not wanting to hire this internally so have a large staff and cam brazen can probably comment image that's the way i am viewing those 3 i'm fine with it if you want to move harder ahead with a motion i believe that staff has a criteria and you bring them and

we can go and understand that not just here but read the rfps that i'm comfortable with looking at those. >> i have a couple of comments seeing none, public comment is closed. >> just want to talk about profits first, i want to echo how you score those i ask the questions you get the comparability it's easy for the numbers but for the objective active ones that's a challengescleritis do you use a are you ableer when r e b ic. >> what do you mean. >> i will ask you what i mean. >> it's a standard way of

grading objective active kinds of questions for may a master students i ask them about the criteria if they earn a or b or c they want to see this in advance they want to see the grading process in advance i publish my recurringers and how you earn a c what additional things you need to earn a d or an a that's called a recurring eagle e earrings it's a master level class in terms of doing that for a teacher it's absolutely prepared. >> is that enough of an explanation. >> i'll say yes would you? i would agree with yes >> i look forward to seeing which this is done. >> great seeing none no other

comments all in favor, say i. of the motion. >> thank you, everybody call item 67 please. >> (inaudible). >> thank you. we're going to wait for anna from angeles investment to join us here in a moment this is a simple recommend change in the number of security and a rational often that anna will walk us through that. >> thanks bill. >> a q r as a long standing manager their quantify active in nature they've revised their process from using 4 on mirsz down to a global on miles an hour this is a lower need for

holder if you think about it as you republic through the models of the categories you are going to get a global defying indication so the only change there they're asking for to move the bottom in the holder down to one hundred 50 this gives their model a flexibility when i look at the bottom into 4 hundred down to 4 stro their anticipation the expected holder will be from the high 3 hundred to 125. >> thank you very much i'm here for questions. >> questions by the commission?

mrvl and mr. melberger >> for the contributes to return he go by the sector and selection this should effect the number or maybe they've got trouble i'm trying to fought how to effects the performance remember the one page that's a timing initial will it effect that. >> i would expect a modified tracking error and i'll answer your question the tracking area is targeted to be 45 periods of time then they very a return target in line with that they expect their tackling to be in that range but got up a little bit the utility environment is hard to track and the tracking error on the lower end that exit terms they don't expect the

changes in the ratio they feel the change p will modest there actually shares that's in the measure in terms of characterizing the excess returned i don't believe i don't think it's a dramatic it is a better way to engineer their that time for the stocking consultant about 40 percent of they're overall model and the shock selections that's the part with where the global option and thirty percent a current fee think of it as 60 percent of the overall model is not changed. >> my definition from 3 to one hundred and 50 it's an unconcentrated portfolio the thing they show you a test up there their process improvement that helps. >> i know they've been looking

at this for 180 months they haven't shown us a back feed they were extended over 6 month period it also, they don't expect it to go down to one hundred 50 by mid 3 hundred they want to give themselves room so they don't have to be constrained or come back but in reality it is more not range of 250 to three or four hundred not down to rhetorical 50. >> can you repeat that thirty periods of time. >> thirty percent current and thirty periods of time country selection and 40 percentage. >> this is my first recollection of the manager asking to decrease the number of stocks do you have any recollection of that happening

before you you know for anyone i have no recollection of anyable manyable asking to decrease the stock. >> i mean this is such a large number of stock you want to be contained. >> which companies. >> not here but i say firlz that my career i've seen firms wanting to concentrate. >> it caught my eye usually they want more my first recollection of decreasing stock a couple of things first of all, on page exhibit b this will be part 3 general guidelines this is on page 2 general guidelines all the investment by the manager one of the things i want to draw your attention you want to know if it's intentional in the cross ousted version the

transacts will be exude on the best price of the sf beshldz or beneficiaries i did not see the word sole but the best execution for the benefit of sf so is that an error. >> that's the template we've added to the score outlines i can't give - >> commissioner i don't know specifically about the changes i can tell you that the i m a has the best execution so we're conforming this to the language of the f m a. >> i'll vote in favor just the wording sole is a big word. >> i'm happy to look at it if you want the board to approve it with the responsibility and the

council to add sole back florida that's determined to be an improvement that maybe american people option. >> thank you. >> other questions. >> are we going to take a vote. >> in the board still has questions. >> i do want to disclose my firm does but with a q r in the retail area i have no interests in my firm will i be excluded from the vote. >> no always the disclosure. >> itself the vote and are you custodial not just the vote. >> it's definitely the vote i wouldn't participate in the

discussions there's no recall necessary here. >> i have a couple of questions. >> first if this a-2 r driven. >> yes. >> second mr. shaw you indicated their holding for a high 3 hundred 3 and a quarter will that make them compliant they have a 4 to 6. >> thank you for the correction that would be my error. >> the 325 to high 3 hundreds is where a they'll go in the next 6 months if f this was approved and we told them that within the 6 months they'll get to a tight range over the 6 months you'll see it. >> the chair will entertain a

motion. >> i'll move we adapt to change the guidelines of a kwshlgs r and look at the word sole. >> second that. >> questions discussion seeing none is communication on item 6. >> david williams i have a question on page 9 where the it is updated and the list of tobacco companies that are prohibited i'm assuming on page 6 the language that means after 90 days of discovering that investments i'm noticing a number of names on both lists is that resolving over the name to update or as opposed to devesting them. >> we'll get back to you with

an answer this is not a q and a unfortunately for public comment. >> thank you. >> it was list in the guidelines i put it in there. >> any public comment on this item? seeing none, public comment is closed infers. >> i. >> passes unanimously thank you call item 7. >> and commissioners if 24 is a review of our private entity portfolio and in our team from cambridge will provide an overview to the board. >> thank you, bill good afternoon, commissioners our long-standing private entity

does well, we're unfortunate fortunate it to have folks here to represent the park please note they'll discuss an update on our portfolio and also the market and i will circle up with a separately to discuss the strategies if you have questions. >> i'm sorry in addition you good afternoon commissioners happy new year at cambridge we've worked on the private entity and we'll take today it continually talk about where the system is today in terms of the private program and discuss the outcome i