advisory with our clients we we have 2 - we have discretionary clients those are set up exactly the way a normal advisory business is a lead consultant they work with the client the difference is that consultant will go to the directors of n pc and select the rigorous process to make sure that all clients are treated equally we don't operate any minimal fund and not involved in we have an allocation process that prevents conflict we think large public funds should indeed retain an outdoor advisors we had one situation with the santa fe police and fire lost their

staff and asked us to serve and we agreed to for 6 months we're not jefferson in that because we have 8 hundred and 80 billiards did bulk from public funds but having activities in the other areas particular a endowments let's us draw an expertise from those areas for example we have an internal committee that looks at for positive opportunities and in the investment and environment that meet the e s g criteria page 6 is the rewards and recognize according to our personnel and clients both our people and clients have been recognized in the industry not mentioned orange county was

mentioned by the one of the most initiative funds that has an increasing issue we've worked closely with orange to try to identify not only the let them had has no context but what is being earned by the expenditure of those foes so the public can understand sometimes when you pay more fees it is a fwen and simply looking at some fees is unable to just on page 7 we've late out our people we think as investment markets become more complex the commitment to research is more important in managing issues that came forward we believe we have one of the most credentialed groups if in the business you'll see the things on that page our

consultants come if a either they're with other consulting organizations that choose to join us people have done things in investment custody or they're homegrown people we've trained up and our teams served that way carolyn came from tackling less than and watson i was what bankers trusted and dan was with us for virtually he's whole career next page package 8 talks about research and the growth of research so you'll see over time not only have the number of people in our research department increased they've been a large growth in the portion of our research people that are non-traditional we believe that there are significant opportunities in

non-public or private markets particular in times of stress we want to do the research to help our clients avail themselves up the bottom chart is particularly important it is not matter how many people you have over and over research folks if the lead consultant didn't have time to work with the clients so we very careful manage the number of clients per consultant so it consultant has adequate time to be with that client i have 5 clients i've had for a number of years the oldest san bernardino county i've served since 2002, the orange county and the state of arizona public safety police and fire at $7 billion and new mexico teachers a $10 million

fund i've spent a good deal of time with our staff they've been candid about the the complexity of your relationships i can fulfill i'm fully commit to make sure you get the best and brightest. >> the next page is the issue how our clients performed the chart in the upper right indicates client anti performances in various markets, in fact, over the last 29 years since our founding the cloys aggregate has outperformed the 29 years not only on a return basis but on the risk adjustment basis as well we subscribe to greenwich research your staff was interviewed by them they serve

one thousand public plans they survey those on the advisors towards the custodian and the money managers we have consistently ranked number one been in the top 3 of the top 10 largest advisors for a number of years be as you can see that there later on in the book if you want to glance on page 25 we'll breakdown into individual scores for various categories we actually pay contemplation to every employee of our ability to be in that so everybody from an administrative assistant for $300 or an ceo bans the ability for outperform finally on the last tjpa palm you'll see our fund clients

we've outlined in danger blue out of the ones in the red city offers i'm going to talk about how we approach consulting or philanthropy do you have any questions of any of our attributes. >> do you only work with pension funds yourself allen. >> we're broken down by client be sector i only work with the public pension funds that's an advancing the public plans i keep saying the problem their public you learner a lot about how the issues are important across the client basis and it builds expertise city of seattle

are fatiguing the issues we think serving only public clients makes us better in serving you. >> i was remembering i seem to remember that you were trying to combine with an asia group i'm not sure if did you do that? so we have been pursuing research in asia for several years doing sending our researchers there several times a year we engaged with a research firm in asia called g f i a it lasted 15 months we were not getting on the ground research we were hoping for but decided to do more trips to asia

that's a big initiative we're think there is lots of opportunities we'd rather do it ourselves >> can you address the issues that if some of the areas are important to pension funds you you know environmental issues and loss of fuels a subcommittee diversity, things like that can you talk about deviate diversity within our company and working with the diversity if you've had those items for you're with all your plans and give us a view of that additionally under that i know that right or wrong had a performed incredibly well in 2008 down one percent you were the close to that i mean. >> i think orange was a little bit more than that. >> they've done well. >> your stream was that

(multiple). >> i didn't mentioned performance but if you look at the 2014 results recorded by rb cones the number one performing county number 52 was ventura county our client and the least volatile that's san bernardino county and orange a close second we've done very well what clients that try to have a more diverse penalized and hive ship and (multiple voices). >> tim will take diversity. >> so a few different parts to the diversity it is the big initiative for us candidly we

can do more and recently a partner all 34 partners got together to talk about the initiative and one of the issues was diversity how we do more one of the things we'll be doing having an initiative and spending money to do outreach and have a more diverse culture as a national consulting firm we're a difference nation and want our firm to reflect that i think we are working hard to try to have a difference culture and engage our employees to work in a life balance flexible work schedules and try to accommodate the different needs of the employees in terms of the diversity in the search process that is an area that will work for many years

i'll talk about the traditional research process and how we funnel managers this is a flexible process that allows us to work within our list or in the public and rfp process either way we include meeting managers either either in our funneling process we'll go through the screening process and separately have emergency managers as part of that and specializing i and will be considered separately. a lot where we rank and compare to all managers to make sure no one are slipping through the cracks. >> because of the initiative i think our founder of the firm was x compass brigitte and i attended it we're looking for

firms that will help us be a leader across the country with other pension fund we're wondering ourselves if we can lead that process and become the pension funds that gathers others and then can make further steps we're hoping our consultants can help us with that. >> one of the things i didn't mention one of the best resources we're chosen to have capable clients that are leaders we've done a number of things in investment side to pit clients together to develop new strategies jerry regard miller has an initiative to try to force private equality funds to have lower fees we do think we can do the same kind of thing with respect to n s g we have an

active committee exploring positive activities in the g s l space with the actions of engagement and proxy, identification of managers we favor those positive actions any potential action we're engaged to examine on the divestment space we miss meet fibd fid standards and consistent with the act it's not our money having said that we are strong believers in improving the environment and have initiatives across the sectors to do that. >> how many women partners do you have in your firm. >> 5 out of 34 so you need to do better laura. >> we do

although the red would do city offers 4 out of telephone maybe a little bit better. >> and tim mentioned the bulk of the employees are in boston not as diverse a population as we like we're working hard to simply being the best firm in above the but better in terms of overall mixes. >> go ahead. >> that's what i was going to say reading all the bios and the bulk of the employees senior martin luther king is in above the it didn't seem diverse you said hiring i guess a recruiting firmer it's to the representative the clients don't represent - >> on the executive questioning committee one of the 5 is female so two of the 8 members of the

group are women and i think all we can say in response we agree we recognize we need to get better. >> and you talk about your meeting management program that's meeting what percentage has you retained. >> i don't have that number i object to get back to you i've got to tell you we have quite a few if you meeting managers on the list their going out in a pro-active way and clients are working off preferred list there are meeting merchandise we'll come back with the total exposure but the total numbers of preferred. >> so welcome i'm malia cohen

i'm one of the elected members on the board of supervisors and one of the things as a policymaker we look for create action so when you say that you are looking to get better at bring into that diversity i'm curious what you have in place to help to diverse if i internally or the talent on the meeting managers list what is we hope to get better actually look like other than a conversation and partners are acknowledging we have liability and areas we can grow is that a policy written a document or other relationships that are being forged if not with universities you know for the call for young talent.

>> all those things last year, we had our first, we used on internship organization to get a minority our director of organizational development is going through the organizations right now to help with recruiting we recognize this is a place it can't be a conversation we say we're going to do this we've got to spend money and work with people that help us build relationships and do outreach and get out to the universities we can have more of a presence and start to build more relationships i think one of the advantages we have we've been flexible historically in terms of location so the fact it our majority of our employees in boston didn't restrict us if we find talented people we can have them work out of their homes or new officers because we're no

restricted in the same way otherwise. >> that's interesting i've traveled to boston in the cambridge area and i found it to be pretty diverse not only from a united states prospective but international i have a strong base to pull from not to mention the world world university my team the smallest state schools are breeding grounds talent is over looked because it is established institutions look for no offense mr. martin but stanford tend to graph at a time towards the larger university like santa fe state in the region that is able to help us

to fill that pipeline thank you. >> i would add we're starting to do recruiting anothers minority university that are smaller we don't want to not go back year after year we're initiating those programs i don't have those facts and figures the head of h.r. has identified those mere we can't hire someone out of stanford we can't pay them but very good people at santa fe and santa clara we are trying to hire an interim for our organization i don't want to disclose. >> happy to help build those relationships i want to go back do one of the things i won thing ideas policy ideas you know they

come and go but generally a person's core values stick with them so i'm occurs to know what is the mr. martin particular you and your consultant dan he's our right hand; right? >> that's how i was introduced (laughter) (inaudible). >> what exactly are our core values when it comes to the conversation we're dealing with as an institution here in san francisco when it comes to fossil fuel when it comes to divestment our hellos in russian due to homophobic idealogy and conversations that are happening there those are issues we're dealing with i'm curious how you'll council and advise when it comes to our allocation. >> first of all, let me say i

have a maybe naive belief that people that are unbiased who have access to information, and have good decision making process if they get the right information generally you'll reach the core solutions with when you get significant dispute one of the things is members of the commission payroll one thing we working hard to make sure we do the core research to have the right facts in front of the decision maker to just judge the right facts you'll hear about the things are not true and the debates are shaped around the information so to make sure we get the right research and two

we're great believers in transparency to tale with an issue in a straightforward way from the prospective it is not our money it is the clients money so we have to do things 2 3, 4 or in their interest we're fiduciaries by training and do lots of research to make sure that the people get the information to make appropriate decisions in a charred environment. >> i think this resonated with me oftentimes we get caught up in the investment as to it's our own money and oftentimes in exercise a hostile vooichlt environment can be created on an issue one of the things i'm looking to work with on staff and my fellow commissioners and ultimate a consultant to

mitigate that level of statistic and misunderstanding and to remember we are acting on behalf of the members and put on own individual interests. >> commissioner bridges. >> i was going to say that california has the largest public university in the district and boston by virtual has the largest private liberal arts colleges in the country i'm hard-pressed to building this is that difficult i'll go further to recommend i don't know if you've heard of the tweg gal foundation they're using the feeding ground for the financial institutions they have people coming out of it and harvard and

san francisco state university their partnerships in terms of recruiting. >> i have a personal friend we're members of the bankers trust and you need to become a member we're a smaller organization becoming a larger o when you do that you need to pay a broader attention. >> to understand the caliber of people that come from an organization. >> maybe i'll follow-up on your answer saying we're smaller and we'll get larger and share our vision on where your company will be 5 years from now in solemn you have 2 hundred and 44 people working for you now where you're at and your vision so we can - >> i joined n e pc in 2000

waltz the 50th employee we're by standards in this industry we come a long way we believe that the asset markets continue to grow and that the need for independent advise will continue to grow as well as we can continue to do continue to grow our revenue and our profitability by doing what we do now and more of it we're not in a business we feel like we have to dramatically change things we believe we choose our clients and grow our resource base with 0 clients with the client base that we can continue to become larger in a managed way we have maintained a 25 percent profit margin and grown our revenue base from 8 to 20

percent a year with that said, the market are more complicated so we're longing to disif i into wealth control and we've done some work as you've seen on the outsourced c i o and doing more work with the private clients with leveraging idea we serve clients each clooiz cloois client was a unique aspect one of the clients are known for innovation so our clients calls us and says what do you think of those ideas getting a creation of opportunities to leverage across clients does wonders for us and have a number of clients do

so-called one-on-one we'll earner a credential fee for earning the consulting firms with the private equality advisors and it enriches our buys do more of what we've done well and initiatives to look at endowment and health care in pa particular we've done for a number of years successfully those are our growth plan. >> to do that more efficiently if we looked at the last 10 years our employees and clients have doubled but to embrace technology and work with the

clients and making information more assessable to our clients would ask a scenario of rich investment. >> commissioner meiberger. >> thank you commissioner makras. >> four matters of inquires discretionary money go management and e s g and cultural can you tell me was it standards for it was originally england we went to the acronym. >> first, the fiduciary is important from our discussion i'll assume you'll stand as fiduciaries to this plan. >> absolutely. >> i said we are engaged in

what is called outsource c i o till it's it is there's a consultant he looks at the same things and makes recognized i have to come to you, you to get permission where there are discretions we'll make decisions and advise with the regulatory activity where you get conflicts who has access to the limited capacity of the manager that's where we have allocatn processes particularly for capacity everyone finds out will the activities whether their discretionary or not so clients have equal access to the information. >> so where we'll be in 5 years there's more money to be made in discretionary management do you see changes in the