>> nice to meet you, andrew collins, delighted to have joined as the director of esg. coming from global advisors, where i was esg strategist working with institutional clients around the world. prior to that was in a research role with sustainability accounting standards board, a nonprofit based here in san francisco that works between corporates and investors on better data and disclosure. delighted to be here and look forward to working with you. >> president stansbury: thank you, andrew, bo. >> we're sad so say that ellen is leaving sfers. she has been the directing manager of asset allocation, risk and innovative solutions. this is decision from a mix of a couple of things. second to last born daughter is leaving, graduated right now and heading off to college in england to join her sister, who is already there. and that, plus how housing prices, she and her husband have decided to relocate to the midwest to trade lower housing prices and much larger land in exchange for cold weather. [laughter] >> much colder. >>

and the third initiative is the esg initiative. in this budget, we did not keep in line with mayor lee's budget instructions. however, the mayor's office did approve that we would be able to acquire resources to fully implement our esg, and the board approved unanimously . we're hoping that the committee and the board would be supportive of adding two permanent resources as a signal that we're not just focused on fossil fuel, we're also focused on executive pay, diversity on boards, a long list of social, environmental and governance issues, so we're hoping that you'd be supportive of that. as requested we've shown the fte growth relatively flat over the last few years, including the last two years and future budget. and this is how we spend our budget. and you can see that two thirds of all of our expenses are paid towards investment. that is not staff salaries, those are hiring managers, they're travel, they're research, and so the last majority of our budget is spent on investment. we have roughly 23% of our budget is spent on p

>> well, i think socially responsible investing is really been transformed it's more and more about esg think that that's an important thing. it's a major distinction, getting to be more and more disciplined around the whole esg endeavor >> what does esg stand for, for those who don't know >> you know, it's an environment, sustainability, and governance and we think that it's just so critical for them to be able to talk about investing in ideas that if you get this right, you're going to be able to add value for shareholders if you have, for example, a diverse workforce and a diverse board of directors that treats their employees with respect, you're not going to get the kind of lawsuit that brought so much damage to the uber brand, to what happened to the weinstein companies. if you're doing things the right way, you're going to be able to really enhance shareholder valu in the 21st century. more and more millennials want to see companies that care about the broader society and are not just think about the short-term profits but realize that long-term profits come from conducting yours

in going back to europe, esg general is the intersection between factors and somatics.have a variable envi ronment, the volatility of your earnings and cash flow is much lower. you are a much more conservative company. you are less risky. guy: let me ask you a different question. volatility has been suppressed for a long time. how big of an impact when it have on the demand for your products if you were to see volatility go up and stay ther e? is there a feedback loop that fx desirability -- affects desirability? matteo: feedback is at a normal level. the curve in the u.s. will flatten. there is geopolitical risk. forward, the low volatility strategy will potentially become popular again. year, low volatility strategists underperformed. now it is coming back. our responsibilities are to offer to investors, a set of possible, all the available products ande for that can be securitized in the form of an etf. guy: thank you very much, this unit.g, ceo of the stoxx watching very carefully at deutsche bank. a number of individual investors talking about the changes being ins

they are t, ep d stp esge dald tstrumrp carried. second is the embrace of donald trump, both his message and -- as well as his policies. there's a lot of talk about draining the swamp and building the wall. finally, looks very familiar to 2016, all the candidates runaing t washington but many of them are part of washington, either are a peb of congress --r mef congress, as in indiana two and west virginia one, or part of the so-called establishment, one of the folks running west virginia is the sitting attorney general. ironic they are runni against washington when the republicans are in charge of washington. usually when you'rin charge you say let's send more people to build the majority.s instead the fo on they need to go help the president, not to help republicans in congress. e you talked about wher there is room in the party for republicans who oppose the esident as well. is that going away? >> you're not hearing anything about a candidate trying to run against the trump portfolio. i lodoked at as from beginning of january unti

it is not just yes g -- not just esg, but trying to get companies to respond to what is happening in respond to shareholders. francine: i think six years ago i spent two weeks with you in south korea looking at steel mills. that was quite an experience for me. how have the emerging markets changed since then? now is all about artificial intelligence and chipmaking. mark: yes. you talk about apple and their success, but it is not only apple. it is cell phone manufacturers around the world. one billion smartphones are being sold. 70% of that is in emerging countries. it is interesting you mention korea. but at the change taking place on the corporate governance front in korea. we never would imagine that samsung would respond to efforts by shareholders to integrate some change. tom: mark, good morning and congratulations on your new effort. from what i hear, this is not a templeton redux. no one can redux sir john's work. it sounds like it will be much more nimble and let's go oriented. how many earnings you expect to hold at any given time? mark: the description of what we are doing y

i mean, these are companies that believe in esg.ey're strong in social, they're growing jobs by quite, 10, 15%, and their governance is very strong. these are companies that are not just acquiring and firing people, i mean, they're growing the economy. stuart: they're american capitalist companies. >> they are. stuart: and they're doing well. >> they're doing fantastic. stuart: and the growth in the economy and the tax cuts are helping them bigtime? >> it's fueling them. there's 17 companies in the s&p 500 that are creating about 300,000 jobs. and if you take those companies out, you've got, you know, 400 and something companies that are basically not growing at all. and these 17 companies are creating lots of jobs, they're informing in r&d, and they're fueling the economy. the others are spending close to $1.7 trillion so far in m&a activity, it's 600 billion over last year at this time. they're acquiring companies, and they're firing companies -- firing people. stuart: there's a couple of companies, i know your stuff, and i believ