they are just counting on morgan stanley and goldman to make markets, and if they are not there, calpers at black rock won't figure out how to trade with each other? or there a funny little price move in an asset class in the dealer will stand there and say, these bond interest rates dropped 10%, but we will offer you the old price? of course not. i think these are just banks -- they are in the business of making money, advocating their own self interest. that is their own job. but don't be fooled by that. i just don't find the argument compelling. another argument that banks will big is, well, the manufacturers in the u.s. -- general motors or ford -- they need us to be this big because they do business in 100 countries, so they need a bank that does business in 100 countries. 100 countries. think for a second, they manage thousands of part suppliers all around the world. they seem to figure out how to do that. they can't manage a dozen banking relationships? ? banks.ording to the big again, let's test their self-interested arguments that making. they don't stand up. >> what would you t

investors in the country, big asset managers, big pension plans, whether it's blackrock and fid eelity or calpers and calcers? you're telling me they're kouchblting on goldman to make markets and if they're not there they're not going to figure out how to trade with each other or if there's a fundamental price move are the dealers going to stand there and say these bonds just dropping 10% in value but we're still going to offer you the old price? of course not. i think these are just banks -- they're in the business of making money. advocating their own self-interest. that's their job, working on behalf of their shareholders. but don't be duped by that. i just don't find the argument compelling. >> okay. >> another argument banks will make is the big manufacturers in the u.s., let's say general motors or ford, they need us to be this big because they do business in 100 countries. so they need a bank that does business in 100 countries. now, think for a second. gm and ford and boeing, they manage thousands of parts suppliers all around the world. they seemed to figure out how to do that. they can'

and some are turning down in the assumptions when looking ahead and with the state of california calpers have reduced rate going forward to seven and you have seen plans lower than that but we're at the median if you look at pension plans of any size and 50% in terms of this assumption. the last couple of years meaning last year and the year before we saw as i recall we didn't have losses but we had very low gains in the pension funds. growth of one -- half a percent, one, 2% and still growth but short of the assumption and that's the problem here. it's not that the pension fund didn't return growth but not at the level we were counting on. in the current year you're right. pension returns in the current year are better than expecting expected and trend to beat the current year but with a lot of time left an interesting thing about the way this math works it's really a snapshot on one day, june 30, on where the pension fund is on that day, and what happens in a week can really influence that number which unfortunately what we saw last year and brexit occurred the week before and the mark

more, it will come from sovereign wealth funds in the middle east and asia and pension plans like calperstirs in the u.s. that have been active and vigorous for the last 20 years. vonnie: in recent weeks, private equity personalities have been in the news because of the trump administration. what is going on here? why is this a meshing of the two? jason: josh harris was at the white house talking infrastructure. he was there with another private equity guy from general atlantic. they are dealmakers, the president is a dealmaker. steve from blackstone is leading the policy council. these guys are very much in the conversation and wilbur ross is a private equity guy. they are all over the place. vonnie: thank you for that. our thanks to jason kelly. france in the plot will be speaking exclusively to jamie 30.on tomorrow at 7: ♪ david: 1:00 in washington in 2:00 a.m. in hong kong. ."lcome to "bloomberg markets here are the top stories we are watching at this hour. the debate over the republican proposal to replace the affordable care act continues. we will get the latest on the house markup

jane: to correct the record, calpers was an early quiet.e see going forward asset owners, large pension plans, they are faced with a very tough situation in terms of trying to generate returns to get benefits of the underlying employees. ,nd unfortunately, most people ourselves including, don't think that investing passively will produce enough return. the good news is that we are living longer but the bad news is that as we live longer, the viability for the pension funds increase. so you have to find sources to put into it. vonnie: are return assumptions too high? now, that is down 8%, the last few years from where is the correct, in your estimation, to normal? large public, the california plan on the west coast are thinking out-of-the-box the box and are retesting the assumptions. we think they generally are moving in the right way. return assumption use is dependent on your investment strategy and the more strategies, the lower your rate of return. vonnie: but even without that, what is realistic in this kind of world? numbers that are

and some are turning down in the assumptions when looking ahead and with the state of california calpers have reduced rate going forward to seven and you have seen plans lower than that but we're at the median if you look at pension plans of any size and 50% in terms of this assumption. the last couple of years meaning last year and the year before we saw as i recall we didn't have losses but we had very low gains in the pension funds. growth of one -- half a percent, one, 2% and still growth but short of the assumption and that's the problem here. it's not that the pension fund didn't return growth but not at the level we were counting on. in the current year you're right. pension returns in the current year are better than expecting expected and trend to beat the current year but with a lot of time left an interesting thing about the way this math works it's really a snapshot on one day, june 30, on where the pension fund is on that day, and what happens in a week can really influence that number which unfortunately what we saw last year and brexit occurred the week before and the mark

. >> calpers still trying to sell a billion of timber. >> anyone else? okay. thank you for your presentation. >> thank you very much. >> we will go to public comment on this item. seeing no comments, public comment is closed. mr. park could you call item 12 chief investment officer report? >> item 12, chief investment officer report. >> thank you. board members we had another very fine month. we were up 1.27 percent for the month of february and up 8.23 percent fiscal year to date so very good return. you see on the front page the u.s. equity market is up 15 and a half, so very very strong return. the fixed income portfolio is up about 1 and a half. turning to the narrative, the economic update, what i would say here is that the u.s. economy continues to do fine. we have more than 90 straight months of economic growth, employment growth, the economy is not doing spectacular but it is doing consistently well. the recent rise in the market which has been really significant is driven by a lot of optimism on the part of investors about the prospects for lower capi

. >> calpers still trying to sell a billion of timber. >> anyone else? okay. thank you for your presentation. >> thank you very much. >> we will go to public comment on this item. seeing no comments, public comment is closed. mr. park could you call item 12 chief investment officer report? >> item 12, chief investment officer report. >> thank you. board members we had another very fine month. we were up 1.27 percent for the month of february and up 8.23 percent fiscal year to date so very good return. you see on the front page the u.s. equity market is up 15 and a half, so very very strong return. the fixed income portfolio is up about 1 and a half. turning to the narrative, the economic update, what i would say here is that the u.s. economy continues to do fine. we have more than 90 straight months of economic growth, employment growth, the economy is not doing spectacular but it is doing consistently well. the recent rise in the market which has been really significant is driven by a lot of optimism on the part of investors about the prospects for lower capi

and some are turning down in the assumptions when looking ahead and with the state of california calpers have reduced rate going forward to seven and you have seen plans lower than that but we're at the median if you look at pension plans of any size and 50% in terms of this assumption. the last couple of years meaning last year and the year before we saw as i recall we didn't have losses but we had very low gains in the pension funds. growth of one -- half a percent, one, 2% and still growth but short of the assumption and that's the problem here. it's not that the pension fund didn't return growth but not at the level we were counting on. in the current year you're right. pension returns in the current year are better than expecting expected and trend to beat the current year but with a lot of time left an interesting thing about the way this math works it's really a snapshot on one day, june 30, on where the pension fund is on that day, and what happens in a week can really influence that number which unfortunately what we saw last year and brexit occurred the week before and the mark

respected and a fairly large retirement system compared with the otherwise and they are not as big as calpers but still lar large. to help further along this conversation. >> thank you, are there any other members of the public here for item one? >> seeing none, public comment is closed. we will adopt the amendments and send the item to the full board with recommendation without objection. >> could you read, item lech out of order? >> yes. item number eleven,hearing on the city's emergency medical service response times and 9-1-1 call center response times; and requesting the controller's office, the fire department, and the department of emergency management to present and report. unfortunately, and hopefully this will be the last week, the audit committee is meeting the same time as the budget and finance submitty, and so supervisor yee may have to come in here and hear that item and so we may have to break this up in segments but, let me st t start. the response times over the last year, and i would like to acknowledge not only the men and women of the police department and the department

respected and a fairly large retirement system compared with the otherwise and they are not as big as calpers but still lar large. to help further along this conversation. >> thank you, are there any other members of the public here for item one? >> seeing none, public comment is closed. we will adopt the amendments and send the item to the full board with recommendation without objection. >> could you read, item lech out of order? >> yes. item number eleven,hearing on the city's emergency medical service response times and 9-1-1 call center response times; and requesting the controller's office, the fire department, and the department of emergency management to present and report. unfortunately, and hopefully this will be the last week, the audit committee is meeting the same time as the budget and finance submitty, and so supervisor yee may have to come in here and hear that item and so we may have to break this up in segments but, let me st t start. the response times over the last year, and i would like to acknowledge not only the men and women of the police department and the department

respected and a fairly large retirement system compared with the otherwise and they are not as big as calpers but still lar large. to help further along this conversation. >> thank you, are there any other members of the public here for item one? >> seeing none, public comment is closed. we will adopt the amendments and send the item to the full board with recommendation without objection. >> could you read, item lech out of order? >> yes. item number eleven,hearing on the city's emergency medical service response times and 9-1-1 call center response times; and requesting the controller's office, the fire department, and the department of emergency management to present and report. unfortunately, and hopefully this will be the last week, the audit committee is meeting the same time as the budget and finance submitty, and so supervisor yee may have to come in here and hear that item and so we may have to break this up in segments but, let me st t start. the response times over the last year, and i would like to acknowledge not only the men and women of the police department and the department

and some are turning down in the assumptions when looking ahead and with the state of california calpers have reduced rate going forward to seven and you have seen plans lower than that but we're at the median if you look at pension plans of any size and 50% in terms of this assumption. the last couple of years meaning last year and the year before we saw as i recall we didn't have losses but we had very low gains in the pension funds. growth of one -- half a percent, one, 2% and still growth but short of the assumption and that's the problem here. it's not that the pension fund didn't return growth but not at the level we were counting on. in the current year you're right. pension returns in the current year are better than expecting expected and trend to beat the current year but with a lot of time left an interesting thing about the way this math works it's really a snapshot on one day, june 30, on where the pension fund is on that day, and what happens in a week can really influence that number which unfortunately what we saw last year and brexit occurred the week before and the mark

and some are turning down in the assumptions when looking ahead and with the state of california calpers have reduced rate going forward to seven and you have seen plans lower than that but we're at the median if you look at pension plans of any size and 50% in terms of this assumption. the last couple of years meaning last year and the year before we saw as i recall we didn't have losses but we had very low gains in the pension funds. growth of one -- half a percent, one, 2% and still growth but short of the assumption and that's the problem here. it's not that the pension fund didn't return growth but not at the level we were counting on. in the current year you're right. pension returns in the current year are better than expecting expected and trend to beat the current year but with a lot of time left an interesting thing about the way this math works it's really a snapshot on one day, june 30, on where the pension fund is on that day, and what happens in a week can really influence that number which unfortunately what we saw last year and brexit occurred the week before and the mark

and some are turning down in the assumptions when looking ahead and with the state of california calpersave reduced rate going forward to seven and you have seen plans lower than that but we're at the median if you look at pension plans of any size and 50% in terms of this assumption. the last couple of years meaning last year and the year before we saw as i recall we didn't have losses but we had very low gains in the pension funds. growth of one -- half a percent, one, 2% and still growth but short of the assumption and that's the problem here. it's not that the pension fund didn't return growth but not at the level we were counting on. in the current year you're right. pension returns in the current year are better than expecting expected and trend to beat the current year but with a lot of time left an interesting thing about the way this math works it's really a snapshot on one day, june 30, on where the pension fund is on that day, and what happens in a week can really influence that number which unfortunately what we saw last year and brexit occurred the week before and the market