[applause] >> tell people how to file. >> well, then this actually concludes it. thank you so much for coming out this afternoon and remember to file by march 2. thanks. [applause] >> i'd like to call the meeting to order thank you everyone fewer patience i was waiting for a full house

roll call please. commissioner makras commissioner cohen commissioner bridges commissioner driscoll commissioner melberger commissioner paskin-jordan mr. stansburg would you state your name is present. >> thank you. please join me in the pledge of allegiance and to the republic for which it stands, one nation under god, indivisible, with liberty and justice for all. >> item number one is public comment i have a lot of cards for item number 4 those of you who are here for item 4 which will be heard in just a minute speak pertaining to the item this is items not on the agenda for today do we have any

speakers? >> i'm sorry for - i'm having trouble our microphone is not working well. >> number one is. for items not on the claurd if you're here for item number 4 that will be up in a few minutes >> we were told we could. >> we can talk about anything we want to talk about so public comment we'll talk about the hedge funds or anything else. >> i'll open up for public comment (laughter). >> your first. >> my name is john i'm a 40 year members of the retirement fund this issue is punt u prejudicial tilt i was here for

15 minutes to one i don't think i've ever in this year as the muni new supervisors i was not late for one meeting when people come later and later and later so we go to a lot of functions that's part of their culture not german or english culture but b be here and start on time the next thing commissioner melberger brought to my at the time of the accident when i made the comment by mr. herb and he mentioned i said that i do building i'm not going to say every hedge fund every time i've

read the new york state wherever anybody is going to jail it's from the hedge funds (laughter) i'm very concerned about our consultant the ceo of age let me see consultant company what kind of people come out of the cameraman islands they don't pay taxes and don't know what anyone is doing i'll say most people from the khamenei islands with the hedge funds awhile i'm here i'll talk about hedge funds the reason i think you shouldn't get involved in hedge funds let's go by the august hedge funds in the country there are been hedge funds for 12 years and devested themselves of hedge funds the reason.

>> 30 seconds. >> for the past 10 years 4.8 percent and last year, we paid $185 million for the hedge funds manages so what makes you think, in fact, i'll for anyone who shows any differences of the calculation you'll average them between less than 5 percent thank you. >> thank you. >> we're using 3 minutes for speakers today. >> morning i need clarification on whether or not i ask talk about the agenda item now the agenda does not reflect. >> do it patrick. >> what. >> i'm patrick. >> welcome. >> i'm here as a private citizen as always i'd appreciate

if those packet were handed out this board and it's chief executive officer how are they smarter than warren buffett he's warned against hedge fund and the pension plan for the board whose clients are beneficiaries rejected investment you have a fiduciary and legal and ethnic obligation to back off the results of the line surveys i was asked of the plan beneficiaries so that monk seven hundred plus survey responders 95 percent are not in favor of the investments in the hedge funds and 82 plus buildings the

pensions so not invest in the hedge funds and when asked what amount they might feel comfortable with in addition the survey revealed 87 p.s. .5 percent don't believe hedge funds are risk reserve than stock who are they trying to fool and if there's a stock market decline 82 percent building that sf dr s should be restricted from vvl in hedge funds and 89 percent building the city should a restrictions for vvl in hedge fund and 96 percent building the board should ask about the deinvestment of hedge funds to go off to cal teachers union to

investigate infrastructure you should visit cal ferries and talk about the hedge funds 94 percent are not prepared to see their member contributions 25rdz future retirement increase in hedge funds fail and 93 percent would not charge - >> the staff to perform adequate due diligence on hedge funds and 98 percent building that all union members should be surveyed for their preferences in investing in hedge funds and 95 plus building that this board should not make a decisions to invest in hedge funds without approval of the 54 thousand plan beneficiaries i urge you to vote no on any asset obligations

thank you time (clapping.) >> if people could listen up to speak on public comment i'll work off the speaker cards first. >> good afternoon board members i'm worked at laguna honda for 20 years i'm not an expert in vvl but warren buffett is and george sorry is and mr. cal per if they don't recommended the pensions to be into hedge funds i know this is a bad idea putting citywide i aside any ethnic issues regarding the

hedge funds like transparency and the connections with with payments just think about this the doubling of the foes for investing in hedge funds and the 20 percent extra charge for profit we city workers will be left in taking the risks with hedge funds and the profit will go to hedge funds for sure today, the members have the opportunity to do the right thing those who support vvl in hedge funds are really irresponsible i urge to you vote no on hedge funds investments thank you (clapping.) >> mr. vice president and board members i'm cynthia an official court reporter the may pitifully of 2013, the that they were to

provide protecting and moderate income housing no to maintain the diversities the findings in the planning code section in the stay and city address mayor ed lee stated starting this year we're under the down assistance promissory note preamble helping one hundred and 50 families after our employees vote on this mayor ed lee speaking speech put the burden of low income for the retirement system steadfast where it should be on the city it's general fund and the landers who are reaping the benefits and protect housing with not return to our pension fund with $300,000 well below the market when the property is sold it is restricted to the

guidelines for the visionary blocking our pension funds and alexander in exceeding expensive funds like san francisco and new york the medium tops $100,000 and the apartments rent for $3,000 a month san francisco is an extremely attractive place this boost in the general fund of high property taxed should be the vehicle for purchasing the protecting housing mandated by itself state of california and not our retirement fund this is not the time to invest in hedge funds i do not like and warren buffett concurs that we should avoid hedge funds only 47 percent returns as for real

estate if they are going to invest we should invest in returns and not a restricted one as protecting housing not when the market is at an all-time high the retirees have more to lose from the investments the board should be more fiscally responsible for our returns thank you. >> good afternoon, i'm ms. wong a custodian working inform cd for 14 years and i come here i'd like to refer to the s c i 14 though members are concerned in hedge funds the hedge fund is too risky and the fees too high

thank you (clapping.) thank you. >> good afternoon thank you for given me the opportunity to speak i'm a member of s c i and works in the city attorney's office and today i'm speaking for myself and coworkers that are worried about our pension money being involved in hedge funds the reason is the lack of affordability and transparency i understand if this were to happy millions of dollars in fees and we'll no be able to know all the transactions considering and on top of 20 percent of the funding they'll take 20 messenger percent of the profit but losses

the hedge funds don't have to pay back those who will come up with the money that the hedge funds lose the employees we're concerned about that as far as lack of transparent my understanding is that neither the employees nor the board will tvnt to know where the hedge funds are vvl and where their investing in and where their investing and losing money they could be investing in companies that sell tobacco or arms or companies that damage the environmentalist or countries where their politics are not in the best interests of our country it is being proposed up to $3 billion of our pension money to be invested in the hedge funds, however, many investors have pulled out so why

we would we want to invest in the funds that are not turning a profit and no so unknowing,able your entrusted with our pension money we've worked hard for and we ask you to not invest our money in hedge funds thank you (clapping.) >> my name is silva alvarez i want to before your accident the poison pill that was in approximate that was passes one any shortages to this retirement fund the san francisco tape recorder as well as the active employee in the retirement system will have to increase their contributions and number two just for clarification commissioner stansbury is it

true you neglected to attend the meeting of the san francisco retirement board while you were arresting a sill certainty public defender commissioner stansbury i'm speaking to you a this is public comment all right. number 2 for warren buffett totally agree no investments funds retirement funds should go into hedge funds number 3 i urge you all people in the room to read the investment for lack of due diligence if staff and the retirement board it is a great foundation for your loss thank you (clapping.) steve united public workers for action i think this issue of hundreds is a serious issue not only for the workers and

retirees in the city and county of san francisco it was the hedge funds derivatives that created the collapse of our economy in 2008 one of the things that's happening a lot of people are saying the economy is going to have another fall because of the speculation we're talking about massive speculation now was did that that mean the hedge funds have a history of buying companies what do they do they steel the pension money of the folks and tell the workers they have 40 candle stick park their busting the unions it's a disgrace that po a that represents the police officers tells us we shouldn't put our money in union busters their attacking public workers

and ventures you need your heads examined the members have to ask serious questions why we have on this board one of the speculators who is worthy over half a billion dollars i asked her so people invest in hedge funds what she said we should look for the good hedge funds that's what we should have done the good hedge funds where are those because people are saying get out of hedge funds we're ready for a folly conserved do you have any money worst over half a billion dollars in hedge funds she said, "no the question we ask why would you want the city employees and retirees to invest when you don't have your money invested in hedge funds

that's the question we have to ask (clapping) so why are you investing in hedge funds that's the question that the city workers have to ask and foreman the city of san francisco has a policy they don't want to invest in fossil fuels when you vote to invest in hedge funds they are investing no fossil fuels nerds they can violate the city and county of san francisco rules and lastly officer is being suited by a black officer in the city and county of san francisco who arrested a fellow public defender who was defending african-american clients and sued her of agreeing what's the pension board is supposedly representing the city workers

for doing her job when he should have been in a hearing instead arrested a city employee you should recuse users and not be talking about this we have to stop the hedge funds slchlt and most of the employees are hurting they can't live in san francisco we need to protect our hedge funds and protect the public and we don't have another bust of our pensions thank you (clapping.) >> good afternoon tom o core president of the san francisco firefighters this is a tough act to follow i'm not here to to personal acquisitions against the board i'm here to say thank you for the excellent rate of returns we've received over the

years we shouldn't politicalize but thank you for all the men and women of the city of chicago we trust our judgment to make the right decision thank you. >> everyone please give the speakers of the courtesy of sharing their remarks. >> thank you, again, for your services to the men and women of san francisco we trust in your judgment. >> thank you. i'm gregory i work for the public library and member of the c i as a librarian i deal with information and facts like everyone said everything that anyone what that point to by hedge fund their risky i think in terms of the hedge funds that relate to a larger part of the economy in investing and if they lose

that's ones the workers i'm going to have to live on a pension i don't know if everyone will but if that pension goes down you don't believe i don't want any daughter to support me in my old age (laughter). >> it woirdz me the retirement board concerns this financial instrument at this time i urge you not to vote for any money to the hedge funds thank you. >> (clapping.) hello, i'm a follower social erica a mesh of the pink panthers and other organizations everything i've wanted to say has been said we've done a lot of research and discussion during the computer and i wanted to say i heard a rumor about an hour ago or so we don't get our

information necessarily under any board member although we've poling to some of us have spoken to several you know we get you know we get this from other sources you here this over and over about warning busting and incurring southern california list that article is automotive all over the place i'm opposing hedge funds i've been here before their risky and the business of transparency is it makes me nervous because you can't detract i want to be socially responsible i don't want to invest our hard earned money into something that's harmful to the environment or another thing that are harmful that will come back to bite you you as a board if those hedge

funds are invested this way then you'll have twice as many people including anti vial groups this place is heating up you've seen the increase of people coming in we're educating each other you know, i wouldn't put that on one member that is not supposed to talk to us we're the beneficiaries not the mayor's office this is what makes many of us mad in terms of the city and county they're in a bad direction supporting the one percent people are being 1r50ek9d right and left this has to do with the mind set many of us n are in a different mindset would people that included the minority included on the boards and with the people that are for

civil rights and escalation their salaries. >> ten seconds. >> we're in the same place trying to keep people in their positions i've read about the people online the financiers that see that that way you don't invest to make money and this is always political thank you. (clapping.) >> welcome larry. >> good afternoon commissioner makras and members of the board i'm larry griffin a compliant officer for the labor investment and in my past life been a

district attorney investigator i'm the at large vice president of local 21 i'm the at large vice president for them i also serve on the pension board prop c and its cost model is based on this board to make sure the investments and funds are in the second degree in a prudent and sophisticated manner as a former member and exclusive officer nonetheless after studying hedge funds and the alternatives in the last several months we feel this is the way to insure that regardless of market conditions it achieves the maximize and the fiduciary duties you lineups listen to stewart's to make sure the funds achieve their 7.58

percentage we urge you and the local 21 is concerned of the manner of the board some of the members have engaged in ongoing and going through this process to address that i also want to thank all the board members you're a public certainty and is in room is a public certainty we should remain that thank you. >> my name is richard a retired city worker and worked 12 years at the city's most dangerous job this is like the public talks to you and we talk and you listens but we could do better on the trofrld acres or issues having some manner of sessions the

camino islands is avoiding the tax and regulars and is like the jolly reorganizes in the stars and stripes i want to refer to the civil grand juries finding reveling the unrealistically high investment of returns is for the mandated member of the city contributions is little regard of prudent management the gentleman was kind enough to meet me he said we have to take significant risks to get 7 and a half percent the grand jury recommended we adopt the raefkz and consistent formula for the expected return rate and we should investigate quantify and address the risks in the portfolio and the hedge

funds don't give us that they don't give anyone that and finally there's 7 finding the public showed that the low risk policies performed better better than the high policy this hedge funds we lost $60 million there was no due diligence on the $750 million investment so that's what i have to say thank you. >> thank you (clapping.) >> good afternoon commissioners my name is david i'm the san francisco regional director for the local 1020 i'm going to read to you a letter that was sent two days by the local president roxanne she writes bear patrol cars i'm writing