we basically -- in both of those months -- have presented the proxy voting results related to this board's policy that we will always support and vote in favor of the incr. i believe the proxy season has significantly ended at the end of june but we'll issue one more report in july by hopefully will be the final. initially, there were over 200 that were drk-resolutions that were submitted by incr members. a lot of them have been withdrawn. i believe that i was reading this morning that they believe it's been a very successful season based on fossil fuels and climate risk issues by the fact that some of these resolutions were withdrawn, which they wanted to point out means that shareholders are talking to owners mtded fagsd

thfagsd -- the fact that they can get a resolution withdrawn is the fact that they're talking to shareholders. there have been a lot ofthe fa to shareholders. there have been a lot resoluti fact that they're talking to shareholders. there have been a lot withdraw they're talking to shareholders. there have been a lot of withdrawals which does indicate that there is discussion going on. i submitted last month a 2018 investors statement to global climate change. that was a g7 letter just as an example of the 10,000 things to come across andrew's e-mail probably every day and opportunities that we have, and he's ferreting out what makes sense in terms of what the board has taken action on. certainly, we have some issues that under the broader e.s.g. we've not actually addressed related to executive pay per

se, diversity on boards, so as we develop a more holist holistic e.s.g. policy, we will be able to join for groups that are working, public institutional investors in trying to influence behavior related to these other issues, and we look forward to that because commissioner driscoll is correct. the blueprint and the steps and the deliverables that were presented to the investment committee all are very important and they're going to take a lot of work. bill will indicate that we're getting ready to recruit for a security analyst to support andrew in his work which we think is very critical to make sure that a lot of the reporting requirements that we have get completed, and that he has that support.

the other thing is obviously, we have a new retirement board member. i was talking to claire on the way in. she asked if he was here, and i said no, he had to go to the br board of supervisors. i will do my best to ensure we don't call a special meeting on a tuesday afternoon. we'll be reaching out to him and his staff to try and provide orientation. we have been working with commissioner chu. we've had at least two sessions, and she's willing to sit with us for, like, three hours, so that's very dedicated and has a lot of questions, and so we look forward to going through that same process with commissioner safai. and with that, i will open it up for any questions. >> president stansbury: questions from the board? seeing none, we'll open it up to public comment. are there any members of the

public that would like to address the commission? seeing none, we'll close public comment. thank you, mr. huish. why don't we go back to -- let's postpone 9. thank you for bringing it forth. any objection to that from staff? >> no. >> president stansbury: 9? the analysis of protection strategies, we will postpone that. that's going to require a little bit of time. >> president stansbury: i've reserved the option to do it later. can we call 10 and 11 together? >> sure. for item number 10, real quick, we had a very good month back in may. seems like a long time ago. our investments were up over

1.3% for the month. we have a number of disclosures that i still think we need to go through, right? >> yes. >> so marshal ridge is a distressed strategy that the board approved in the absence of a portfolio. we made a $25 million investment. we expect to get more here in the coming months. that will be called -- called down periodically over time. that was actually the only item closed during the month. there is some valuation data earlier in the memo, just some charts showing the valuations are above average, but they're not ridiculously high like they have been at other points in time, and that there are some markets that are really quite reasonably priced. and also, on page 3, i'll note that this is just a follow up to any p.c.'s quarterly report back at the end of the first quarter, and that is that our performance has been very, very good across all time periods.

and it's without taking more risk. you'll see at the bottom of page 3 is that our volatility is slightly lower than the peers, and in public equity, the reason for the table on the upper page 4 is to show that over the last few years we've seen a pretty comfortable improvement in our excess returns in public equity. with that, i can close that and move onto item number 11, since they were called together, i believe. so fiscal year end, we ended up at about 11.34%. i do expect that number to move around as private market investments, their valuations are closed in the next couple of months. in particular -- and it wasn't just one things, we had a number of good returns. u.s. stocks and private equity were up more in 17. real assets were up nearly 15.

special congratulations to art and also to ed and chris and to cambridge for getting an increase in our exposure to real asset to the time when that wasn't really popular a year or two ago. oil prices had fallen down to about $30 a barrel or a little bit less, and they've rallied to more than double that, so we've seen a reversion to the mean that, and we did that by increasing our allocation at the same time. global equity and private debt were also up in the low teens. and every asset class were in the positives. fix income just barely above break even, which is something that we've been expecting. in the month of june, we were done 27 basis points. this was particularly in international stocks, and in particular in china because of

the -- the trade tensions going on. we did have a number of meetings. i was recently in beijing and pouring through the difference of the business performance of the underlying companies that our managers are invested in versus what's taking place in terms of stock returns, and we're really, really pleased with the business performance of our under lying companies, and the impact, the trade tensions in terms of our companies, our managers are estimating at about 2%. it's really quite deminimus. in addition, one manager is just chomping at the bit because they're seeing p.e.'s of five and 6 where they're expecting earnings and growth of 15 to 20%, so they're really quite encouraged. the year to date, we're up 3.2% on a calendared year to date.

economic conditions -- i do want to point out one or two things here. overall, economic conditions continue to be really good. the one highlight i would want to point out is that earnings growth has been really strong lately, up about 26% in calendar year 17, up about 20% here in the first half of this year. it's going to be really hard for the markets to duplicate that. you usually don't get say even three years of 20% earning growth, and that's going to make next year's comparisons harder, okay? so just to keep an eye on in the future is that i would expect that the -- i'm not expecting any really serious trouble, but it's just going to make the -- the comparisons going forward more difficult. but -- but the good news is if you see the chart at the bottom of page 2, is that stock prices

and -- and earnings growth have mirrored each other. as a matter of fact, earnings growth has been a little bit higher. that is a really good sign that the stock market appreciation is based on fundamentals, and it's based on the present value -- on cash flow, and it's not based on speculation, it's not based on a repricing of the market going higher. a couple of closures to note. the biotech value fund, we -- the board approved $200 million. we have intestvested 60,000,04 million in various vehicles. we do expects the remaining 100 to be called in the next few months. also, the board approved a real

estate opportunity strategy for fortress of 75 million. we've invested 100 million so far. we believe further will be called in the next number of months. long hill, which have a venture investment strategy in china, we asked the board for 30 million. the board approved, and we did get all 30 million on that. there's a lot of ways to make money in health care in china from biotech to medical equipment to health insurance. tower brook is a strategy that we asked the board -- it's a large cap buyout strategy. the board approved 75 million. we did get 50 million, and beacon light, which is an equity long-short strategy, we asked the board to approve 220 million. the board -- 225 million. the board did so. we expect the remainor of that

will be call -- remainder of that will be called, as well. you see the portfolio is up 6.5% on an annualized basis and that's at a period of time when the bond market is actually slightly down. i am very pleased to welcome ron manning, and ron, if you could please stand and perhaps come to the podium and introduce yourself. ron has -- ron played football at rice university, so he's going to make me a really good running back. he played offensive line, but he also previously served at the dallas-fort worth retirement system, and he's got a distinguished education, as well. >> i'll just tell you a little bit about myself. i'm raised in houston, texas. i went to rice university in houston, so -- and got my graduate degree at texas tech. my wife brought me out here.

she's from the south bay area. she grew up down there. came out here, visiting her family a couple times, and really fell in love with the area. she found a good job. i followed her out here and found a great job myself, so i'm really happy here. city of san francisco's been really exciting. looking forward to -- obviously, the summer's been great. the nice winter weather you have here in the summer. it's good. you all think it's hot. i have to stop saying y'all. you think it's really hot, but it's not. let's see...working here, i'll be working with eunice and the private credit strategy, but i'll also be working with victoria owens on the public strategy as we make the transition back and forth there. so with my previous job with fort worth, i was a generalist. i worked with the portfolio half, and then i would have hedge funds, private equity,

funding only strategies. here, i'll just be concentrating in one area, which is private for me. >> and did you close on a house in the last couple days? >> i did. >> wow. east bay. >> yeah. planning on jogging out here. >> welcome. >> thank you, ron. >> welcome. >> and we do have our manager director of asset allocation, risk management and innovative solutions. an offer's been extended and accepted, and that person will start on august 27, and i look forward to introducing you to her at that time. that closes the c.i. reports. >> great. thank you. any questions? commissioner driscoll? >> i'll skip my questions, but on this monthly report, on your page 5, the sf sfers monthly net aet ises, some month -- assets, some months, we started

putting the liability bar on there. i highly recommend we keep that there, but only looking at the assets and not looking on the right hand balance sheet, people are going to focus on that. it's much more useful information in terms of what we are trying to do here, so if you could put that back in here -- i see this one's been amended by staff. i would highly recommend, even if it's a once a year number, you can do that. >> happy to do that. i'm glad you mentioned that, commissioner. it is a highly relevant number. we are at june 30, and since that number's going to be hard coded in november , we can include it. >> yeah, and you can footnote it to say it's only measured once a year. >> okay. we'll move to public comment. any member of the public wish to address the commission? seeing none, we'll close public comment. thank you, mr. coaker. regarding items 12 and 13, i

don't see miss chuy. i think we can take the items as submitted unless there's any highlights you want to bring up to the board. >> i just want to bring up two matters. in the third quarter, interest rate was set at 2.26, so we're moving in the right direction, and on july 25, there will be a deferred compensation meeting, and that, as submitted. >> thank you for the reminder. we'll cope it up for public comment. are there any members of the public that would like to address the commission on this issue? seeing none, we'll close public comment. any comments from the board? >> the eligible participates now is north of 36,000. that's a big number. it shows how much the workforce has grown. it affects liabilities. it's at least 8,000 more than eight years ago. many growth in jobs. again, that means more work for staff, rolling people, but

again, it affects the participation efforts that deferred comp is trying to work on. >> thank you so much for the report. item 14, we are going to postpone to a future meeting. 16, so i believe there's only -- do i have this correct? there is -- [inaudible] >> what's that? [inaudible] >> yeah, why don't we call items 18 and 19 together as submitted. any public comment on items 18 and 19? seeing none, we'll close public comment. any comments from the board? okay. that leaves one item, item 20, retirement of a board member, good of the order.

>> order to request information either from staff or from our city attorney because i think one of the things -- or one of the issues that have come up in different meetings over time is a confusion for me around our use of our fee r 5 so i would be interested in hearing from a city attorney if there's any restrictions or requirements from us to be engaging in r.f.p.'s or r.f.i.'s in our search for a manager. >> i might add onto that, a repeat of something i've said before, if we could please look at how we are going about finding managers, and whether or not there's any areas for improvement, and i think that goes hand in hand with commissioner chu's request. okay. public comment? are there members of the public

that would like to address the commission? seeing none, we'll close public comment. anything else from the board? great. thank you, everyone. it's been a very long day. meeting adjourned. >> very long day.

[applause] >> mayor breed: while. what a beautiful group of people. welcome to district five. [cheering] it has been a real honor to serve as a supervisor for the district that i was born and raised in. i am so excited today because this is a special community.

it is a community that has had a challenging past. iit is a community that has consistently come together to solve our most challenging issues. it is a community that is such an amazing place, full of people who care about rolling up their sleeves to get the job done. not only to make their neighborhood a better place, but to make san francisco a better place. so when i was thinking about someone who is just really a strong communicate just community advocate, someone who is focused on delivering for the residents of district five, i could think of no one better than valley brown. [cheers and applause] i first met valley brown over 15

years ago before she was even a legislative aide at city hall. she was actually in the lower elite with her own picker picking up trash. i thought, this really reminds me of what my grandmother used to do. she used to clean the steps were relived. she used to make us clean up in our neighborhood and i thought, that is pretty amazing that someone would just take it upon themselves to go out there and clean up the community. she has been actively engaged, not just in her area where she has lived for so many years, but she has touched the lives of so many people across the entire district. when i reached out to residents in this neighborhood for feedback on someone to replace me as the district five supervisor, time and time again, i heard people tell me stories about what vallie has done to help them, to basically help

plant a tree or remove a tree that was dead, to deal with a pothole, or to help here in the western addition with many of the challenges that you all know we face when we were dealing with some of the worst violence in the history of our city. vallie has been there for us. cavalli has rolled up her sleeves. [cheers and applause] to not only get the job done for folks throughout the district including as far out as the inner sunset, but she has focused on the broader issues. the issues around equity. the issues around neighborhood preference. she was by my side on putting together that legislation to deliver neighborhood preference for the residents of the city where people who live in the community have a right of first refusal and access to the affordable housing built in their community. because of the history of

redevelopment and what has happened here, you had a fierce advocate on my team to fight for what was right. because of it, you know the results of the kennedy apartment. we are able to get 23 african african-americans in the apartment at 39 of those 98 units went to residents of this community. time and time again, when reviewing legislation, vallie has been the eyes and ears of the community character she listens to the needs of our small businesses and community members, and she makes sure that when legislation is introduced, that she proposes amendments or raises questions, or other issues so that the legislation and the work we do at city hall can actually have a positive impact on our community. this playground where we are here today, she was instrumental

in working with the hayes vallie neighborhood association. working with the western addition to bring the community together and to help with city resources to raise the funding and to make this a place where all feel welcome. that is what she is about. bringing people together. covering all parts of the district. young people, seniors, everyone has a place in the vallie brown administration. i am just excited because -- and what some of you may or may not know, vallie brown worked for me as a legislative age. she worked for a previous supervisor as a legislative aide to. let me tell you. i don't know how many arguments i have had with her over decisions, regularly. she stands her ground. she stands her ground to do what is right and to do what makes sense for the people of this

district. we will have no more fears of an advocate on the board of supervisors than the amazing vallie brown. it is my honor today -- [cheers and applause] it is my honor today to administer the oath of office to my friend and a friend of our district, vallie brown. [cheers and applause] [laughter] >> mayor breed: ok. do we want to do it in the microphone? ok. all right. come on, vallie. come on. hang on. i'll just hold it.

>> mayor breed: i vallie brown. >> i vallie brown. >> mayor breed: do solemnly swear. >> do solemnly swear. >> mayor breed: that i will support and defend. >> that support and defend. >> mayor breed: the state of california. >> the state of california. >> mayor breed: against all enemies. >> against all enemies. >> mayor breed: foreign and domestic. >> foreign and domestic. >> mayor breed: that i bear true faith and allegiance to the constitution of the united states. >> that i bear true faith and allegiance to the constitution of the united states. >> mayor breed: and california and i take this obligation freely without any mentor -- mental reservation. >> and that i take this obligation freely without any mental reservation. >> mayor breed: i will well and faithfully discharge. >> i will well and faithfully discharge. >> mayor breed: the duties upon which i'm about to enter. >> the duties upon which i'm about to enter. >> mayor breed: and i hold the

office -- i hold the office of member of the board of supervisors. >> and i hold the office of a member of the board of supervisors. >> mayor breed: and the san francisco county transportation authority. >> and the san francisco county transportation authority. >> mayor breed: of the city and county of san francisco san francisco. >> of the city and county of san francisco. >> mayor breed: congratulations. [cheers and applause] >> thank you. >> mayor breed: supervisor vallie brown! [cheers and applause] >> crazy. i have to take a deep breath. this has just been a few hours that i have even realized that i am actually going to be the supervisor. i am. thank you. thank you. i am sure that will not be the last time you tell me something i need to know. [laughter]

but i am so honored to be here today with everyone that i respect and admire. mayor breed, thank you for your confidence and trust and appointing me as the district five supervisor. i know it wasn't easy for you. because we have so many amazing residents and advocates. when you told me and when you called me and told me congratulations, supervisor brown, but you said, not even skipping a beat, you better take care of my district and residents --dash residents. i knew that was the reason why it came to work for you in the first place. it is amazing to be at hayes vallie playground. everyone, this is such an amazing thing. the buildings and the grounds are beautiful. i walk by this place every day when i come to work. i see the community tending the flowers, picking up the trash,

and making it their community space. i will tell you a little history. we used to call the building that was here eight leading to. because i think, th the coordinr here held it together with duct tape. i was an aide when we received bond money to renovate the building. unfortunately, we were short about half a million dollars. when the city's early budget was revealed, this funding was not in the budget. so we decided to put it in adds back. and as a supervisor snow here, $500,000 for one place and add back can be a really hard push. but we fought really hard for the funding. it was really the neighborhood association that activists and advocates in the fillmore,

western edition, cheryl davis, and then mayor breed was ed of the arts and cultural complex. she came out to city hall in force. and got this through. got this ad back through to actually build this building. and now it is absolutely beautiful. what i really was about this experience is that as your supervisor, i cannot do it alone. it is the community that makes it a reality. it will be you, the community, that helps guide me in city hall. hall. i am your voice in city hall. i moved to san francisco three decades ago. i was looking to create a community without other artists and like-minded people. we lived in warehouses throughout the city, but then,

as now, we were evicted and pushed out. one landlord, in particular, a good landlord, came to me and said, why don't you pull your money together and by the place? 's own three friends i bought a place. it was falling down, but it was our home. right now in san francisco, families, teachers, nonprofit workers, and bartenders, they are struggling to stay in san francisco. i am not seeing the same housing opportunities we had back then. even as artists with part-time jobs, we were able to pool our money together and buy something. keeping people housed in a neighborhood that they love and creating more housing, affordable housing, it will be one of my top priorities as a supervisor. not far from here, i started my community activism.

we worked to create a supervisor -- supervisor breed mentioned we work to create a neighborhood association and we cling to the streets. we helped the school, the elementary school. we improve the public safety. we planted trees. i realized that the power of a community coming together to tackle issues in a neighborhood. it wasn't easy. it taught me that it is possible. i also discovered that i love community work. yes. [laughter] i'm not sure i will -- it will always love me but i loved it. it really was my springboard to take the next step to work for the residents in district five as a legislative aide. for over a decade, i worked for two supervisors and with the city to improve the neighborhoods in district five. the life i built in san francisco is a very different one than the one i grew up with in utah. i grew up with a single mother working odd jobs to support me, my sister and my grandmother.

i never knew my father. i knew the fear of not having stable housing. we moved often. one day, when i was at school, i overheard a girl tell everybody that my mom was a deadbeat mom and she didn't pay the rent. that is when i realized that nothing is guaranteed to. by the time i was 14, my mother and my grandmother had passed away. and it took a community to raise me. so you can say, good or bad, i am a product of community development. [laughter] now i stand before you today, your community partner, your district supervisor, your neighbor. i am ready to jump in now. i'm ready to jump in to work with japan town, the valley, alamo square, and the fillmore.

shout out! and inner sunset. ashbury, cold valley, i i think i said lower hayes. when avista, lower pack heights. thank you to residents of the five. [cheers and applause] [♪]

wwe have a high-speed rail representative. and director reiskin is unable to attend today but director kane just kim is absent. joining us is director chiang. [roll call] spee 12 your next item is item number 3, communications. we will be postponing item 17 to a future meeting. item four, the role of business. >> chair nuru: non