>> i will opium i'm sorry this is not a question and answer period you can speak to the commission. >> i can say which of the two, 5 percent policies are testified next and here's any comment when you vote will you make it clear which policies you're voting on tuesday (laughter). >> i would be happy. >> make that clear as far as the funds for emergencies that is (inaudible) i will clarify the motion those of you those are alternative policy hedge funds the break out is 40 percent in global equity 18 percent in private equities any public comment? 17 percent in real assets, 5

percent in absolute return hedge funds and 20 percent in fixed income >> i will - i don't want to open it up for editorial at this point is there my question that's pertinent to anybody's issues. >> okay all in favor, say i. >> i opposed? it is a 6 to one vote thank you everybody the commission will take a 10 minute recess. >> item number 5.

>> that's a discussion item. >> to the commission do they have questions for staff of this item this is self-explanatory i will on it up for questions. >> no questions staff anything you'd like to share more than what you've submitted. >> you have our report we're available for questions. >> i'll open up for public comment for number 5 annual report and sorry. >> thank you jed for city of chicago around. >> thank you all this is officially takes the cake for autograph us i think i was very excited to see that

rep systemic the approximate i didn't voting was on the agenda the first level one activation of the level one approximate i didn't voting since 1992 was activated a year ago this month and involved taking active proxy votes at the board level for the top two gas companies that are listed on the carbon tractor list i don't see any mention that existed so i actually am not sure that level one oh, say can you see by the dawn's early light was kwacht as this board implement one year ago if it was there was certainly no

indication in the republican systemic report that is concerning to us despite what we've heard from the board we need to go through the steps and let level one take it's course it didn't seem like staff or the board has taken the social investment procures very seriously or if so perhaps staff didn't communicate to index s f they have include the approximate i didn't action i'll say this is the only fear in the last year that the board specifically called out proxy action so the fact it is a discrepancy ricci so make sure make sure? included in the next

item. >> speakers sielgd and we brought you monthly report under the proxy assault weapon that included the engagement it was a separate project we brought to you and report each month at the end the proximate i didn't we provided you with the result of our holdings and how we voted button proximate i didn't see for the incentive we have those separated out and but we have also considered it not part of the annual report but as a special report i believe the last report had been

in june or july we'll provide the level of details for o cooker 2 hundred companies. >> great, thank you call item 67. >> item 6 action item review and look at the proxy voting procedures did 2015. >> this is the second of two reports you've received from staff each february the action item once in a while we'll address the recommended changes to the proxy voting policy and belief radiation on up for staff for questions. >> questions by commissioners? okay

commissioner driscoll >> okay. then the chair will entertain the motion of adoption. >> is there a second. >> open up for public comment on item 6 welcome back jed. >> thank you for your repeated indulgence turn to page 8 of the staff report for this item you'll see that the 7th restriction to the proxy restriction is related to adaptation of green house gas emissions point out on page 23rd the environmental issue that you

would have a voting policy on i guess i would make to point one of them is the first reference i gave you number 7 kind of shows you that i ss as a major proxy voting contractor has moved pretty much beyond your level one vote of a year ago with their default plan to when we say your level one is weak i think this move by i ss leads cede as an that the basic fundamental report is beyond the level one you specifically activated a year ago we'll agree our social policies are blovldabove

and beyond the second point on the number 22 is to draw out when you look at this list how many of these are a case by case basis the vast majority are a case by case and i'll note that you'll level one because of a motion by a board member instead of it being across the board hike a anti climate change it is a case by case vote it looks like making a case by case vote on those issues actually was not a new approximately unbeknownst to us we've not seen your i ss school district it looks like you had some kind of case by case by case by case voting with respect to fossil fuels proceeding this report i don't

know if that is accurate but from this report is it my point relating to the last agenda item this stapling step was meant to be the first step the board intoxicate for inform cooker and at risk information which we bloomberg and at&t's others brought you to and what this report is exposing is that the last year is kind of been wasted that the kind of default plan, which example ss will be recommending to its similar institutional investors to take a predictable reasonable approach we'll urge that this report that you use this report to judge the level one has been

tried and not succeeded in changing the social investment conditions and now is the time that i ss has taken our level one and made it your baseline to move to level 2 thank you very much. >> welcome back claire. >> thank you. this time i'm speaking sole for myself again on page 19 item 21 the self-analyst testing and someone pates a great advocate for conservation for animals and domestic animals i had expend conversations with a number of research veterinarians including those atic davis with issue with my own dog i've leader beyond

the lab rates there's no necessity for animal testing we're not talking about the lab rats that are breed for that kind of test we're talking about the dogs and beagles and rabbits and other kinds of animal i'm hoping at some point roach the case by case and oppose all animal testing in regards to this think of our own pets and think if you want them to the ginny pigs and come up with a different view thank you. i'll appreciate that if you change that thanks. >> seeing none, i'll close the speaks on page 167 under the reluctant can you walk me through why we support

confidential voting i presume as opposed to an open vote so we can better cast all our votes on other issues. >> this particular issue is generally dealing with confidential voting that have been submitted by institutions to companies and making sure that that information is confidential it is actually, the proposal we generally see we haven't seen this proposal for a number of years now it's been a few years since this type of proposal has been on the ballot of proxy companies.

>> not towards votes in the board room. >> no only institutional investors and a as and present their votes to the company. >> all in favor, say i. of the motion. >> i. >> passes unanimously thank you you very much. >> item 8 please. >> number 7 please call it.

>> thank you thanks for everyone's patience commission dris cal colonel made a comment we shouldn't be giving money to managers that have too much this is one exception, however the group being one of the biggest global asset firms in the world but they're releasing is their largest business line representing about $80 billion in annual and they have an infest track records going on 25 years but their performance through and after the global financial crisis that

ceded their reputation the real estate group is managed by john gray who is likely to be running the firm someday and you know give the track record the impressive leadership dominating their franchise that led the firm to raise a rough sum of $15 billion and at very gp friendly terms the most notable only a percentage of acquisition transaction fees will be refunded to investors even so i think a meaningful investment to this fund will provide the system r with fantastic global on turnoff global and the

opportunity to invest with them 0 peter. >> hi commissioners so what give us the commission to recommend this money to the on turnoff real estate funds asz over a 25 he year periods one .7 multiple pretty much puts them in the top level of many on tusk real estate managers they focus on and the management to drive the creation across everything they do and last but not least they are the only remaining what's called a scale player in open you tusk playing this is the financial crisis and this is a tremendous advantage sometimes the deals are two big or complex

i'll pass it over to cambridge. >> thanks i'll reiterate everything it art and peter said regarding black stone they have an un34r5er8d real estate team in the entry a way to leverage the black stone that helps to generate the information flow to trj of the trends as peter men's their size coupled with they're built to act quickly is a true competitive advantage and consider large portfolio investments that others can't and they have the ability to execute very rapidly so brought deals on a first look basis that others can't see and finally one of the best track records in the industry it is consistent over a

long period of time and their consistent with their performance and on i r and r and disabled capital basis so a lot to like here and if there's specific questions i'll be happy to answer any questions. >> so the question is who's their biscuit competitor right now peter mentioned the larger global banks have been pushed out of the industry they're in a sweet spot likes a star wood might be considered a xeefrt but given the size of the platform investments they pull into this fund and stay difference if i did they don't have try xheefrts. >> i was going to mention star

wood but identifiable the strength strategy is very different there. >> i'd like add one more brookfield their funded for the project sponsor. >> but globally. >> yes. >> that's it. >> any other questions. >> nope. >> we'll be open to another motion. >> i'll make the motion. >> second. >> we'll open up for public comment on item 7 seeing none, all in favor, say i. >> i. >> passes unanimously thank you very much item number 8 please. thank you norm commissioners just a couple of quick notes one our missing a page from the printed report which you should have received by handouts that

was a double sided report the last page didn't print. >> so did we get 50 percent of it. >> that's sound right. >> a couple of quick things on the first page the investment vurnz is we're floating around zero negative 0.3 percent so far year to date so the return on the market has not been it's kind of flat lynn in terms of moving on to the memoranda is the orbit meant the health care royalty strategy the board approved in november closed up on january 30th so a

high point there. >> the car began stream go that was approved in december an energy strategy was closed on january 30th and we're making good process we may have something to report on building out our team in a matter of a few weeks. >> you have a report out as part of the supplemental v vote. >> that's right 53 voluntary closed after we recorded the materials this was a capital strategy the board approved last masonic february 3rd great i'll on up for question with our chief executive officer seeing none i have a couple of one request when you call out

the investments that closed anti low you be able to show the number the up to number. >> yeah. >> on your i do have and eunice might be here on we've met thirty. >> (inaudible). >> beautiful i believe it will be your page 2 not knowing if that's at real page 2 human resources at the bottom of the page we have your equipment two questions the last line it says the underrated is that a date error or are we year behind on tracking it. >> i'll catch up to the commissioner. >> unfunded commitments.

>> it's labeled asset allocation january 21st the capital appreciation is the first step all the way down to the bottom unopportunity commitments is that an error in dates are are we reporting. >> it's a january 2015. >> the next question blow that it says rb bridge walk me through that, please. >> t is bob here? okay real estate bridge loan i don't recall what that is what i report back >> sure of -

>> i will open up for public comment on number 8 seeing none i'll close public comment mr. cokeer we can handle that at a later time. >> item 9 the discussion on - (inaudible). >> manager you have in front of you the report for this month and i also wanted to advise i we have just learned that london stock exchange that owns russel investments will be putting russel up four sale that will happen quickly but we jew just founded about it this and answering any other questions.

>> questions by the commission. >> we've done well in that business. >> any other questions seeing none i'll on up to public comment public comment is closed. thank you for your report. >> item 10 please. i'll accept the item as submitted any questions by the commission? >> no. >> chair will entertain a motion for adaptation open up for public comment on item number ten seeing none public comment is closed all in favor, say i. >> i. >> passes unanimously thank you item 11. >> item 11 the determination and

approval of credited trick or treat for 2015-2016. >> great we'll accept the report as presented it's self-explanatory i'll on it up for questions. >> seeing none, the commission i'll entertain a motion of adoption. >> so moved. >> great open up for public comment on item number 11. >> seeing none public comment is closed. all in favor, say i. of topics. >> i. >> passes unanimously can you please call item number 12. >> item 12 review and the adaptation of july evaluation results. >> the actual serves corridor we've got the funding agey and this evaluation a determines the

upcoming fiscal year from july 2015 to june 2016 and our colleagues to talk about the results. >> good evening we're just going to hit the highlights of the report and talk about what's been changed and look at it some of the projections quickly we have good news to report contribution rates are going down for the employers and the basis has improved 10 percent and those have been primarily due to the investment returns of 18.8 percent. the fiscal year as well as the new ambition policy we've adopted in august and as well as being offset by the policy just

adapted in the - this table give us additional daily on the funding status i want to point out a couple of items first the actual investment from $167.3 million plus to $2 million less than the market rate that is $1.9 billion it's the actualy value so we recognize things over a 5 year period and those alternate $2 million in gains will be recognized over the next 3, 4 5 four or five years so you'll see when we get to later in the presentation that's a cushion it provides relief to the fund the other things i want to point out the new items on the chart

at the very bottom we're identifying from our unfunded liability the interest costs on that and that's something we're starting to compare from fund to fund yours is a very good situation the railroad on the unfunded liability is 3 and a half percent payroll so 3 and a half is the interest on the united way funded liability so our california survey by comparison as of just about 30th 2013 was median of 13 percent yours was significantly better than we saw on this slide we're showing the changes in the membership the new things the changes in the liability and the funds a