it rise towards 7 and a half that's a four and a half percent pay raise if you do this right they'll get and lastly retirees retirees would like to get a full supplemental one cola that can't happen unless the application is going well i'm not fearing hedge funds i've been watching hedge funds for 25 years and gentleman before me said why were they created well, it should be a clue they're important to someone they've 7 thousand 5 hundred holding $3 trillion and worldwide one out of $4 managed and hedge funds exams from the public or

private pension one out of $4 from a public or private pension we're not early but late hedge funds were create by wealthy individuals that had with an idea in said to manage risk and manage their risk they were looking for returns with bond like down side it's now huge there are 8 hundred institutional quality and we have a - we've been looking at 8 hundred institutional hedge funds for us what do i fear it's not hedge funds it is a repeat of 2000 and 2002 and the disaster of 2007 and 9 when the fund headed do

you think that's what i fear and putting the risk management controls to me is the prudent thing to protect either of those things happening thank you board and staff and keep up the good work on behalf of all of us thank you. >> jonathan hello, again trustee 7 thousands 5 hundred hedge funds managing $3 trillion that's called chasing returns that's not a good strategy i want to just make a few more comments starting with the words truest we've placed our truest in you you have a diet to manage our assets with the interests of us in mind not have jay hewitt but of my interests and the rest of the people in the room right now, i'm

wondering if you're making the best efforts to do that why don't i say that there are things about the process that don't make sense number one it appears that mr. coker and hewitt came to you with the recommendations at the beginning of what should have been an open and objective process the answer was hedge funds before the questions were asked and in fact the right questions may not have been asked this is not prudent and careful and not skillful and not delinquent as far as i, tell the gentlemen gave you information only how the hedge funds are not risky and they're the observe choices authenticity to the on and objective so again, i have to ask why, why are hedge funds and

other investments that have higher fees than other options being pushed so hard by the c i o this makes me dough the integrity of the process i think if you were doing euro job you'd question that when hear that mr. poker and the other gentleman refuse to pick up the phone and ask questions that should have been one of the first steps taken it was not done ever i know i'm beating the deadors those are two of the greatest investors to size us to stay away from hedge funds by the way, we have to building that

that those gentlemen are smaller u smallest than warren buffett i found articles why hedge with a hedge funds hedge funds are for instructors are hedge funds the ultimate rip off and more evidence that hedge funds are a way to trail the accepting 57 hundred. >> i understand you as trustee may not have been directly involved in developing the hedge funds you are only accountable and at the end of the day the short term the absence of the theory and objective evaluation and our duty to manage those and go through an process to look at the prudence and skill thank you (clapping.) >> good afternoon. i'm

patricia a retiree and member of the local in san francisco i strongly oppose the 3 or 5 or 10 percent no percentage in hedge funds that is taken from our retirement fund i won't repeat all the things that have been said we've been coming since genuinely june this is clearly is not a prudent investment whatsoever and 81 percent of the retirees average about 2 thousand 5 hundreds a month for benefits that's an average those way up there for one hundred plus are down there with most of us who average the same as assistant is that is 12 hundred a month in this city how do you

live there's been things done when vvl in risky investments and now the mayor want to dip into our pension fund as well where does it end i think it's the one percent we're all familiar with are looking for pots to take money out of and pension funds as a gentleman said one in $4 come from pension funds i want to make one correction it is historically we contributed 7 that is 5 percent that was a give back done in the latest 90s by the city employees now the other thing i have one hundred and 50 word statement i'll turn in i'm deegress because of what's been said about the transparency of the

board and onness i believe i heard that you were going to vote on this issue in private now that's kind of disturbing i understand there are some things the board has done in private i've been on a board that to me seems how intransparent am i wrong are you going to vote on this in public today is that true? wonderful >> i guess i was misinformed. >> 30 seconds and between 2009 and 2014 the apprehension fund asset grew by $11.9 billion from $11.9 billion to $21 billion that was out risky investment as

i said the only - i thank you and we. >> time. >> we're look forward to this vote and please say no to pension funds. >> (clapping.) hello my name is sighing i'm a retired financial visa cards and planner for a major bank my wife she works she is working at the city of san francisco and she'll be retiring in 5 to 10 years the main reason i come today even though i have concerns about hedge funds i want to i'm more concerned about 457 b the deferred compensation before i do that i want to make one final comment on the hedge funds

remembered in 2007 and 8 when the market crashed we know the reason the market crashed all the hedge funds people they urged you to buy so-called money back mortgage security or whatever the fancy sew names and the hedge fund with all those big guys are by the time against it they make billion dollars and billion dollars of dollars 38 they take our houses away a lot of people went bankrupt because of the hedge funds so i want you to remind you that the hedge funds is not for you but for themselves and one other thing i remember a few years ago help also the teachers hedge funds they almost went bankrupt because of those hedge funds they lost billion dollars and

billion dollars of dollars b be very careful about those hedge funds and the main thing i come here today combaus because prudential and they claim that they did acceptance up front is much less than great wall and it is point zero 5 percent interest you've got to be decree very, very careful about those people when they lowered the up front ratios they have much higher expense ratios then your investing in they claim it's not their fund other people's fund and you also is a consultant i don't know how faith is this consultant working for the benefit of the city and county of san francisco last time. >> 30 seconds. >> i was here in january i

don't have a chance but compared the funded with prudential 250i789 december 20th accepting were 67 percent and metro was 6 seven hundred i can send you through the e-mails - time. >> and i'm saying the performance is below average for example you look at the real estate investment plus the highest return funds was 28 point plus and the other zero better to be safe than sorry point one percent ratio that's right was 0.01 percent. >> time. >> so the older funds was -

>> welcome. >> hi and my name is david hill i work for the san francisco public library good afternoon, commissioners and commissioner cohen bev says hi i was interested in some of the things i can go over here and revehicle sore roses and wiener busting i could do that but it would be cheap so i would but i'll admit i was pulled out by some of the agreements made in defense of investing in hedge

funds mr. griffin from local 21 said used the phrase regardless of martha conditions well market conditions are the thing that it is postulated it depends on marketing conditions that is strange it is sort of like a man that leaps off a rooftop and of a 10 story building by the 6 floor says okay. so far (laughter). >> at the risk of getting heckled another interesting comment the idea that was it one in $4 are invested in hedge funds and then he cited the

2008 9 financial country and says it could have been prevented by more vigorous hedge funds i'm not a environmentalist or a very interesting person (laughter). >> i just don't understand how something how you can look at that situation and say more you know it's you know if you're going out through to market street and beat someone i've been smoking a lot of crack why not come up to my place and play russian routine if you say i'd prefer not to go to a russian routine party will you accept the answer don't knock it until

you'll tried it larva. >> it seems like like the board is e vesting from oil to fossil fuels and so on and so forth that it seems like a bad idea to move into cripp tonsillitis thank you for your time and thank you (clapping.) (laughter). >> oh. >> okay. so. >> good afternoon everybody i'm elaine i work for mta muni i didn't and san francisco representative of san two one siu i'm here front of the you, you with concerned members and public and employees of the city

and county my concern as you've heard wait until the last minute is this i'm afraid with this investment for the simple fact is all of us went through the recession before those money we put into the city and we've working hard are for all families to put sweat and time on it i guess why do we invest our own money we've worked for and this is only pertaining to members of the family we've worked for and i wonder if any of you would like to invest our own money you've worked for and think about it what's the outcome of it because right now, we're very certainly not agreeing to my of this why

not pass all those people that make a lot of money and exempt the retirement and i's and all of us pay dues and why can't we - why you take all our money who gives us the right to do that i'm here and anger with all of those things we keep going back to this i just wonder and question how much will you guys if you invest our money out there tell me i work in a bank before and this happened before i'm not going to let this happen to me and all of us here because this money is not about your money this is our money i've worked for this and i'm tired of this

leakage and playing games with our money and retirement all of the us in here put money and time to make san francisco all about and you going to come in here and all of us working here and take it especially you guys you put into this position and helping us and make us understand help us to make our money gain and not to invest it and lose it i wonder if you guys are getting what you are looking for because it's too much hopefully, you guys make a decision. >> 30 seconds. >> because we are all effected and if you can go to sleep together for the dignities is this the right thing you wonder

you if guys can face us. >> hi, i'm denice when i worked for the city i literally and literally can prove it saved million dollar dollars for the city i want to get some back i never got a raise so i don't get a big pension even now you know this thing has been dragging on for months and i don't understand it i think that i get a sense of arrogance and the science of people who the majority are opposed to the hedge funds i'm

urging you to use the cautionary principle and stop it like i said before go to las vegas and use your own money not mine thank you. (clapping.) >> thank you good afternoon trustees i'm cynthia landry sits on the 1021 executive board for the local trustee it's been said before it's been said today and it will be continued to be said by our members active and retired that we have saying no to my hedge fund allocation simply stated zero hedge funds

allocation local 1021 exclusive board has passed a resolution along with the committee opposing zero hedge funds allocation. >> support. >> what did i say and supporting. >> okay. thank you for the correction supporting zero hedge fund allocation our members have done their due diligence and my question to you trustees have you done our due diligence regarding hedge funds we've had a town hall meetings regarding hedge funds and the board has been educated on hedge funds do you know the specific instruments that comprise our

hedge fund allocations what does the hedge fund comprise of what are the fees? and where was the corp headquarters? is the and does this corp headquarters pay taxed do they invest in the u.s. and economy are they good corp citizens those are questions you should look at when you decide invest thank you. (clapping.) >> thank you very much. >> thank you good afternoon my name is rebecca resign with the municipal executive association thank you for the opportunity to address you first

of all, i want to talk about the collective issue i think it is the most important basic concern about their retirement terms of the pensions and health care i want to acknowledge that there's no easy answers to the decisions i share that angst what brings me is any equal angst when i hear and read our consultants analysis that we're in a worse position today, if something like the downturn in 2008, haepdz and we were in 2008, that makes me extremely concerned and so whatever i have something complicated in front of me i try

to make the best decision it means gathering information and what the nba believes in and what months thoughtful people understand when you have complex issues i want to note a couple of things to make sure i'm right first of all i believe the decision will be to invest in some measure many hedge funds but the decision about what hedge funds and the discussion of transparency and the philanthropy of those hedge funds will come back again and require another public discussion i believe we all share a concern about the issues and want to make sure that whatever investment we make acknowledge the culture of san francisco the other thing i want to say

the issue of peace it's a been brought up in terms of fact-based discussions i understand there are other investment that supers board has invested in that has the same five fee structure so fees are an issue and should be an issue and challenging them at every single place. >> 30 seconds. >> where we spend money not only on this area this is not the only area we pay high fees i want to say i checked and unfortunately or fortunately you know many union plans invest in hedge fund they go to protect workers pensions and i think that to question people's wish so protect pensions is really. >> time. >> and the failure to make a discussion decision and that

decision has ramifications we need to move forward differencely so we can begin the process of protecting the pensions of all of the retirees and active san franciscans and the taxpayers and acknowledging that if there are alternatives idea i've not heard them put forward yet we need to be realistic about the options thank you. >> thank you (clapping.) >> my name is john i think the board and mr. cork can have a dilemma to deal with i heard 7.5 percent was your target and the 10 year bond it 23 two percent and the entities

are over valued there is no easy way around this dilemma they've turned to hedge funds and hopefully, they'll work out the hedge funds are two unrisky they've draufksz underperformed and the local hedge funds have underperformed by 2 hundred points but what do you do when you index to the entities you can lose 20 percent your dilemma is it the investment community has failed you not oufg e offering the. rightone: that is adequately hedged the reason they can't charge 80 fees it's a very, very simple thing to do you can buy the i for less than 10 percent

and with the low volatility in the financial markets created by the banks of the world you can easily hedge those with options and futures for reasonable costs the problem is the people who are worried about the hedge funds they're not going to includes u lose your money they haven't made you enough money that's the problem and the come back can problem two percent or 10 percent bond deal can't find a difference if i believe investment that works in a typical plan it explicit exist you guys are coming late to the city model and the thirty years too lastly unless i get even though best hedge funds and the best private equate funds and

the beneficiary funds you're playing a loser game but that's the investment community fault they're not providing you pension funds america with an adequate product that's - >> thirty seconds. >> i have a dilemma with not easy solutions right now (clapping.) what is your last name. >> david williams. >> just for the record i once ran a hedge fund and anti performed it in 3 years. >> what's our name. >> john. >> thank you. >> david williams with the retirees thank you for listening i'm very proud of any memb