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 members of 1023 one and have talked about he they feel will the hedge funds plan it is seemed to be recommended about the risks and the fees the need for transparent about the feeling they're not been due diligence that this whole mechanism of determining the asset allocation has been taken with blinder on for the last six or seven months and the lass lack of controls with the board and the hedge funds will have and the

investments and fear that groups on the table like elliott management and the people he deals with that will invest their money against the unions and against the fine benefit plans leads me to once again say you've heard from many of our members you've received many, many services opposing hedge fund investments today, i have another 8 hundred and 65 close to 3 thousand signatures of our members back behind the ones you've heard opposing the hedge fund allocations we'd like submit those and hope you'll consider well, today, i hope we hear a lot of comments today that actually have a career

point of view by the way after all of there must be so. >> (clapping.) good afternoon. my name is a terry.org i work to the san francisco public health as a coordinator i've worked for the san francisco over 40 years and member of local 21 i'm a member of 21 pension advisory committee that is past making recommendations on behalf of the members to this prosecuted we've done research and unanimously recommended a 10 percent investment in hedge fund we urge you to support this vote today local 21 really took a finding out thoughtful fact full approach to make a determination on behalf of our members we

support listening and engaging in complex matter and the experts building the allocations will protect the fund in a down turn we recognize that are concerned but building this board listens to its experts and makes prudent decisions and the fund will continue to recover from the 2008 downturn i thank you. >> (clapping). >> hello claire welcome. >> hello, i was going to wait by after the last comment i need to speak i'm representing the retirees we had our meeting this morning and our position has not changed it was interesting one of our members that attended

today said she's moving to fresno she can't food san francisco she's been priced out of her home and has to move to fresno where she's found anywhere affordable lodging she'll be able to get her pension and live in fresno and for those of you who knows fresno she compared it to hell s of you who live in the central valley and understood part of what you're hearing today is really the vast majority of men's have been advising you this is not a prudent approach to take i think you should be pressed with the fact so many of our members and members of your system has done their due

diligence and educated themselves to the issue because many quoted experts and obviously have done their research i read over the packet and concerned with the for a second i don't believe that due diligence has been made with regards to the information any stack thas has grown from the information from june and i see no opposition information the only one i've heard that ever spoke about the dangers of hedge funds that presented a balanced approach is commissioner melberger all the material is only focused in one direction we must invest in hedge funds it is curious to me even the former organization i have friends as the uc it is now reducing it's

equities portfolio and it's been reduced because of the excess fees and too many securities that were not performing well yank if that's an issue it is interesting that that is happening soon after he leafs our funds are at 3 percent your percentage will go lower and not pot as well funded as we were before i urge you again to listen to the members the vast majority of members that bothered to come here for the first time and spoken and have consistently done it since june. >> time. >> if you're members are that interested in the issues before the board you should takes a look at and listens to them thank you very much

(clapping.) >> thank you. >> thank you, mr. president, and board members i want to thank you for taking the time and emergency it's taken to get through this matter i've come before you sefrmentsdz asking for continuance to get more information we've metro several of you and talked to our own members that work with the retirement staff as well as the staff managers and this is not an easy decision we pulled together an citizens advisory committee we had consisting of members that are supportive and opted and had a robust discussion and asked difficult questions about the assuring the ideals and that advisory committee made a unanimous decision to support at this time 10 percent of the lowest percent that staff recommended we precede and i stand before you

to you urge the board to act on the advice of experts local 21 digs in deep on the details we but we believe that would the premise of prop c the promise made to active employees this board needs to make you prudent investments that will reduce the contributions of active members they currently pay one of the highest rates for the retention but begin to move that contribution waiting rate down to protect against a down turn i think one of the riskiest things to not change strategies and go through other strategy like 2008 we need to protect ourselves and

comment i believe that all of you received a letter signed by the unions with po a and m e a and others irregularly you to support staff and experts and do the right thing with this vote today thank you very much (clapping.) thank you. >> hi good afternoon. i'm margaret a member of the s c i u-1021 and member of the fossil free san francisco if my notes are correct i'm not the 37th speaker today thirty of whom have spoken clearly against hedge fund against investments in hedge funds i will remind you zero so fossil free san francisco is composed of people like myself in this system people have relatives in the system and

people that care about our future that is what opted i i take it up i us your strong beliefs that fossil fuels are killing us this is what this pension fund is involved in we want to get our pension fund out of if you voted for any part of the hedge funds you're voting against our commitment to the disadvantage that is down to the planet you will vote to divest from took hedge funds by their nature are not transparent hedge funds will contradict directly the comments you've made for social investment and make the devest impossible in the future you're going definition our own recommendations i'll remind you i believe when come backer spoke

in the beginning of the journey said that under 15 percent of hedge funds is not worth it how do you justify 10 percent how do you justify 57 percent or anything you're opening the door to a process that thirty of us today are really opted to and 30 thirty of us who represent clearly the majority of city acres the retirees was have you heard so many passionate pleas for your responsibility you've been very patient listening to us thank you for that many of my coworkers had to leave because they're working but many are staying to the bitter end of the month to month we want you all to explain where you would put any money into an unwise have

you ever known there are clearly all of the. >> 30 seconds. >> we'll be here to hear our decision we're not going away we have our calendars marked every month for this meeting thank you (clapping.) >> if no other public comment i'll close public comment and call item 2. >> item 2 an action item approve the minutes of january 14th retirement board meeting. >> is there a motion of adoption. >> i'll move. >> open up for public comment on item 2 seeing none, public comment is closed. jake and i'll pout one amendment that staff proposed in a memo from norm a clarification of the ownership within the deferred manager's report it should be in a packet before you that's in a memo form from

norman. >> okay. i'll give you a moment to review it. >> i'll read it to it is clarifying that well karen's statement. >> it is just clarifying any statement at the board meeting the draft minutes are number one changed in the target date fund with the cap manager they reduce the number of merchandise from 6 to one we're proposing we make it clear the ownership of q m a by having this instead to replace the recent change in the small cap value fund prudential reduce the number from 6 to one manager per q m a a subcy of the management that's what we discussed in the board meeting.

>> do you accept that. >> yes. >> thank you. >> on the page 5 of 23 this is i'd like this is stated as follows: can you hear me okay - >> just want to clarify page 5 states commissioner melberger noticed the comments on hedge funds shouldn't exclude - i state i preferred a fund to funds i stated the marines why that is i did not trust staff to be able to do the job and the commissioner stated that was micro managing i want to make that clear it is not micro misrepresenting but a policy decide so no member of the board should be criticized one more

time i'd like that to be restated commissioner melberger noted his comments related to a fund to fund so a direct approach that's number one number this had been page 9 of 23 this is a second photograph from the bottom it states in reference to a question from commissioner cohen commissioner melberger stampeded not to rule out consolidates that is false when i said i wouldn't rule out pca the pension consultants i did the due diligence and met all the rfps and felt they were one of the strongest candidates and that's the reason i wanted them computed in the search with those two amendments i'll delighted to reamend. >> is that a second.

>> i will open up for public comment seeing none, public comment is closed all in favor, say i. >> i. >> passes unanimously thank you call the next item. >> 3 action stem on the consent calendar. >> a motion of adoption unless someone times to pull off any items great what's the will of the group? move to adopt the consent calendar >> is there a second to that. >> i'll second. >> open up for public comment on adaptation of the consent calendar seeing none, public comment is closed. all in favor, say i. >> i. >> passes unanimously thank you next item, please. >> item 4 action item staff due diligence report an 2015 as an asset allocation proposal.

>> good afternoon mr. cokeer we'll accept it would you like to add comments. >> wanting maybe one or two quick comments. >> some of the things you see on paper is the staff and we've got multiple multiple meetings together with art in the private equity team as well as how much we can invest in real assets and the private equities over the next 3 to 5 years and the mature thoughts or individual thoughts on whether or not to petition the real assets into multiple assets there were multiply meeting. >> thank you on up to the commission if there's a direction we should go on the allocation if you want to put it

forward in the form of a motion we can do that. >> i'll move we adapt staff's recommendation. >> polluting please turn on the mike. >> i ask we adapt staff's recommendation and a at the 5 percent allocation as present. >> is there a second to that? >> i'll second. >> great discussion on the motion? >> yes. question on the motion staff recommendation for the 5 percent allocations is absolutely u absolute allocation is that direct. >> my motion to take staffs recommendation and not con

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