in 2008, our bond portfolio looked a lot like an equity portfolio. it had a ton of credit risk. when credit blew up, it did poorly. >> can i just -- can i -- for time's sake can i stop there and open it up to the board for questions? this is kind of a natural place. >> just one more minute? ok. in the long-term, diversification almost always works. it works spectacularly in the bursting of the internet bubble. back then, real estate made money. reits made money. value stocks made money. hedge funds earned double-digit returns in the bursting of the internet bubble. in most periods, diversification does work. in a severe, systemic-wide sell-off like we had in 2008, diversification does not work as well. but also what happens post that, the government comes rushing in and says i'll guarantee that. i'll back that. i'm good for that. they can't let risk at-prices fall to zero. what happens after that is you have a robust recovery. >> can i -- can we talk about that some other day. i don't want to keep everyone here all night. >> the bottom line is we believe the best approach, we've

having a diversified portfolio.he simplest of asset allocation concepts is in the long run, diversification wins out. that's a boring message at times. one that i think we would be remiss if we didn't hammer that home constantly. we do believe in diversification, over long-term periods. that wins out over long-term periods. thinking about that, and we've gone through some of these slides. if there's questions about stuff you've seen before, feel free to stop me. not going to spend as much time on that. but one of the things that we wanted to think about is trying to illuminate when we talk about strategic verse being dynamic and what that means. and when i think about strategic, that's the asset allocation target we set and were approved back in october or september timeframe. that is the long-term guide post with which the plans operating today. but then thinking about what are ways to be dynamic within that allocation. so setting bans, setting plus or minus asset allocation targets around that. setting guidelines

of our portfolio. so first, i wanted to take a 30,000-foot view of what the city owns and leases. so our portfolio city-wide contains approximately 44 million square feet of buildings and land, that's not including rec park holdings. that is within the city limits, so it does not extra territorial land which is significant outside the city and county of san francisco. of that, we lease from private properties only 4%. of our portfolio. this has been an issue that is concern of the board of supervisors as we brought leases forward as to what is the constitution of our portfolio. this really tells the big story. we're at 4%. we had a discussion with many of our peer organizations across the country. we found an average range when you look at aggregate portfolio, there is a lot of land in the portfolios nationwide, they range from 1-4%. new york city, austin, texas, right at 4%. so we feel we're in line with the peer cities in terms of how much is leased and how much is owned. to try to address that conce

that's on the equity portfolio, doing those numbers on the bond portfolio. to cost assumes they're tracking the index. and value managers are chosen to add value above the index. value manager is paid for you to determine the security or set of securities are undervalues. and to buy them with the idea of selling them when they're higher valued. energy stocks are susceptible to price fluctuations. backward looking analysis said, should have gotten out of it, but we've had oil and gas prices going down with other days of distraction. in the 17 days in january, oil is back up. it's because of a growing economy. when the economy grows, more energy is used. and most of it comes from fossil fuel prices. so prices are up 4.8% with energy. the value managers, the costs are even higher than what i said. on page 10, we note that energy stocks perform particularly well in inflationary environments with growth. we've haven't had that for 10 years, but the possibility -- and that's not our base case. our base case, as you heard, was modest growth in the economies going f

to the office portfolio. and now we're going to take a deep dive into the civic center where the heart and bulk of our offi office leasing takes place. how do we define civic centre? this is a map we felt best depicted our assets in the civic center that revolve around city hall as the point of government. and those units that need proximity to city hall need to be within this radius. beyond this radius doesn't feel or act like it's in civic center. that's a sense of how we defined it. so now let's take a look at a snapshot today and how we're moving this portfolio in the future. how do we move that needle from 19% leased today, to an even lower percentage, which is our goal. first thing i want to mention, we took a look at peer city organizations, those who could slice the data to this level. most could not produce this kind of data in this presentation. most just don't have the information, but for those that do, two really good examples as a method of comparison, the city of san diego. their downtown core

i like were our portfolio -- where our portfolio is, going toward growth with our equity selections,ancials, industrials, etc. we are just watching and waiting. on the bond side, we maintain lower -- shorter to intermediate duration and high-quality bonds. we have exposure to real estate. precious metals like gold and silver, which, if you get whyation, the reasons interest rates would go up would be the same reason you have an increase in gold. the market does not always trade that way but common sense, that is what happens. we have a broad-based exposure. vonnie: any concerns any asset classes you mentioned may be the next overcrowded trade? growth stocks for example? >> i think there is a lot of sectors in the market, if you look at them in terms of valuation, they are expensive. in some cases, you on them because you expect companies to grow into the valuations and are comfortable owning them at elevated vibrations. in other cases, that is not the case and they are expensive. we look long-term and tend to focus on some of the areas that have been left behind and are maybe trading

the portfolio, it's truly an engine. it is an en tne to get you your goals of that retirement date, of livingif that bea golden years in tampa, somewhere warm. maybe it's albuquerque. >> uh-huh. >> essentially, that portfolio engineto be your and so what engine do you need? you need a souped up engine. you are going to have more stocks because you might be behind. otherwise you could have a prius engine becse you have been able to save enough you don't k.ve to take on that r >> stacey francis, thank you. with frannis financial. >>> let's look at today's big turnaround on wall street. the dow rose 567 points to 24,912. that cut yesterday's losses basically in laugh. the nasdaq added 148 points, better than 2%. the s&p 500 up 1.75% or 46 points. >> it's only tuesday. >> it's only -- no wonder we are >>l so tired. know. that's it for us tonight. i'm sue herera. th k you for joining us. >> i'm tyler mathisen. thanks from me as vewell. great evening, everybody. and we'll see you tomorrow. >> this is "bbc world news america."

>> well, it's a portfolio. >> okay. you don't see each fund on its own. >> well, we don't think of it as a portfolio. >> i know. i know. i'm just curious to see how they performed during that week. >> okay. >> just to see if anything was really not what we thought it would be -- or understood the volatility a little more. >> okay. >> i think that issue's a really interesting moment in time for us to understand what that portfolio did when the market went down. thank you. other questions, comments from the board? seeing none, we'll open it to public comment. is there anyone from the public who'd like to address the commission? mr. furland? [ inaudible ] >> 30 seconds. [ inaudible ] >> time. thank you, mr. furland. are there any members of the public that would like to address the commission? seeing none, we will close public comment. why don't we go to item number 22, and why don't we take item 22 as submitted, and we'll call for public comment. seeing none, we will close public comment on item number 22. discussion only

to put a number on it, the fossil fuels portfolio of the retirement board right now sits at over $500 million, $500,000 million. since the commitment in 2013 the board of supervisors made to divest we divested $1 million, that's .2% of the fossil fuels portfolio. that's the action we've seen from the retirement system and board with respect to those who have fought hard for die investme investment -- divestment. we've not seen a fulfillment and the degree of inaction belies the moral and feudishry responsible of the board to dive divest we know big oil is under performing the s&p 500. we know there's been consistently negative turns over the past five years. over $100 million of the retirement systems investments in fossil fuels have issued consistently negative returns over three years. we can get rid of those investments today and there's no argument that does not fulfill the retirement system's fiduciary obligation to its members. as sea levels rise and climate catastrophes occur with greater consistency there is no excuse for this support. i thank you for taking for take strong po

if liquidity gets out of whack, the portfolio does.ut this because if you think about who are using risk parity funds, you have behemoths like bridgewater holding a lot of bonds. putting that pressure into the market, they are pretty careful about their trading, but if they see correlations starting to change, they will have to start trading into the market and you get issues of liquidity because they hold so many assets. happenedink about what during the taper tantrum when these funds got low to the ground, they had to hit the bond market hard because they were bleeding assets as correlation got out of whack. as inflation spiked and ruined some of this relationship. definitely something to keep an eye on. each firm would have their own opinion whether they can impact the greater market and to what extent, but selling could occur if correlations continue on this rocky relationship. guy: traditional idus, the bond market is a hedge to my portfolio. can i do that anymore? how does it work in this next phase? steen: this is all about math

and that is the science and technology portfolio. what are we investing in in the network that will deliver capability? and what has industry research and development efforts, one of a developing in that we may not need to worry about? what is dod, what are other players in this space that have network implications, where are they investing? the past 75 days as we stood up. we find out what's doing what. where the investments and how do we explore that and exploit that as quickly as we can by getting this in the hands of the soldiers and making sound recommendations on how to move the money to get the best tip -- the best capability. >> maybe it is unfair because it is just too broad of a question. too many different technologies but how much better do you want to get? there is a program that is historically taken as five or 10 years, use whatever example you would like. how much faster can we realistically become in the space of the network? >> i would say in my opinion, there's technology today that we can coordinate pretty quickly

this is where i trade and manage my portfolio.ce i added futures, i have access to the oil markets and gold markets. okay. i'm plugged into equities - trade confirmed - and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you. >>> welcome back to the half i'm john harwood in washington we have the four-page memo that was released, so-called nunez memo written by house republican staffers on the intelligence committee and what it says essentially is that the law enforcement officials who applied for a warrant to secretly surveil carter page, the trump campaign adviser, omitted information about the information it was using to obtain that authorization from the national security court. the omitted the information that it had relied in part of media reports, omitted the information that christopher steel, the author of the so-called dossier, had been employed by democrats in order to gather information about donald t

this engagement can permeate a whole portfolio to drive improvement.if you own the assets and make the assets perform better, you can -- yeah? >> just to clarify, you're advocating don't sell the company -- don't sell the company stock, but look at the actual projects that are within that company and move down to that level? >> so number one, i'm not advocating -- >> or whatever. >> what i think the point is that as part of transitioning to a low carbon future, there is a lot of critical choices companies make about what they invest in, how they operate and how they're assessed. there is a fork in the road, do you want to be in the board room as part of that conversation to push in a certain direction or opt out? there is no perfect approach, but there are pros cons and one of the cons is losing the seat at the table around the cap x decision. there are choices to be made and the world would be better off in the choices move in a more sustainable direction than less. and one of the questions is what role do you want or not want to play in the conversat

the annualized impact on an overall holding portfolio was 12 basis points peryear. slides 18 to 20 show this in more detail. they're historical simulations based on actual cash positions [ inaudible ] starting on slide 18 -- and i just want to point out that manager cash is not included in this, and that tends to run an additional 2%. slide 18 is the full cycle from september '07 to september 2017, and you can see in the two right hand columns on the bottom. [ please stand by ]. >> -- to managers, benefit payments, capital calls. this process can also be used for reallocation from one asset class to another. for example in december, we lick witne lick -- liquidated $1 billion from our management portfolio. wanted to point out that any of these strategies requires an infrastructures of a futures agreement and a manager to implement them, and contracts alone take six months to finalize. so that -- in summary, cash securitization and rebalancing are expected to recover ten to 20 basis points. that's up to 500 million over ten years based on our current market value. it

what stands out the most, 20% of their portfolio was founded by a woman.res to the average. i spoke down with maha ibrahim and nina kjellson from canaan partners about how they might describe gender issues in venture capital. >> in the last few years there has been a race for people to hire women, for firms to hire women. they have done it at senior roles and german -- and junior roles. over the next couple years, what will be the true test is, how many of those women stay. how our industry retains those women, helps them be successful, integrates them into the fabric. we are at a good time right now. i am optimistic for the future. i take responsibility and i know that many others take responsibility in making sure those women are given every opportunity to succeed. is uniqueaan partners in that it is three female investing partners and 40% of the company is women. how do other firms get there? i got to think a lot about this when i decided to join the firm. i did a lot of research about what is canaan doing right and what is the recipe. it has to do with

like i said, we manage these portfolios. big five, back in the 1970s and 1980s, there really like the big 64. about 59 other programs are selling underneath the major systems. that is really what we have today. we manage those capabilities because we have a variety of threats that we have to deal with. the more help we can get, the better. they have access to, you know, the brightest minds that our country has to offer. >> i should have mentioned his background is also an mba in addition to other things. were discussing the outreach to the silicon valley and the other high-tech sector dealing with the acquisition process. general, please, go ahead. >> as i spoke earlier, we are looking where we are and for the last 75 days, one of my first stops would be to see what areÃwhat is this company doing the joint community and how can we possibly leverage that to our advantage? we have already conducted a cross functional team with 576 partners in aberdeen, and the next one, we are actually working to get nontraditional partners an

how it is causing a shift in portfolios. ibm's watson is now stoc

not to mention dealing with another portfolio of china.ndicated, it isn't just a question of access to classified information and what he can read or not, another complexity is attending any kind of meetings. white house situation room is typically set at the tseii level. so if he were to attend a meeting and he's only cleared for secret, that really in ibits t inhibits the conduct of business. >> i want to ask you about mike rogers today on capitol hill testifying about u.s. efforts to stop russian interference in elections at the origin of the attack. right. to bring it to the russians. he said he has not received authority from the president of the united states to do this. and i just wanted to play for you, i'm sorry, what he said, and also the white house press secretary trying to muddy the water and almost deny what he said. here's what he said and here's sarah sanders. >> the mission teams, particularly at the origin of these attacks have the authority to do so. >> if granted, the authority. and i don't have the day-to-day authority

answer to that thars a good thing secondarily, the fact this is just an equity correction and not a portfolio correction doesn't present the risk to global synchronized growth that's very important. >> is the worst over >> yes yes. that doesn't mean that we don't test it. what we see when we see a big spike is significant spike like this one we shorten the time frame because of the speed i don't think we go back there i'll be surprised if we can push back into the low 30s because we're not just with moves like today. you're 1.4%. you're not in the 30% volatility range. in other words, i think a lot of folks that needed to get protection grabbed it last week. some at really bad prices. some hopefully kept their hands in their pockets and didn't make the bad decision >> you're a buyer of stocks and a number of different ones >> i was i was buying them last week. when you look at quality companies, when you go through earning seasons we used to pick up the stocks good today, 14 th% down high quality companies look at jpmorgan >> morgan stanley. >> why are you looking to sell down some position s

i would debond my equity portfolio a little and not have in stocks inrest my portfolio.ld move away from the united states. i do not think the international markets have to correct as much of hours. i look at a little -- as ours. i would look data little commodity -- i would look to add a little commodities. for the first time, cash has a return and it will make close to is getting to be competitive return. i would raise a little cashier until the market settles down to lower levels. julia: one mind to finish it off. cameron: i think he is right about cash. for years, cash has been trashed, and maybe now cash will be flash. [laughter] scarlet: cameron crise. paulson. julia: cryptocurrencies lighting. -- sliding. starting off the new year and red. why there are more concerned industry.the this is bloomberg. ♪ mark: i am mark crumpton with first word news. the white house says the newly- released gop memo raises serious concerns about the department of justice and the fbi's handling of the russia investigation. impressed. isn't he asked on twitter, "that's it?". he calls t

what is that portfolio? are they willing to accept a narrow scope in that portfolio? >> i'll and two hypotheticals. was kushner naive enough when another government says we want to deal with you personally to accept that at face value, be flattered by that. and was he naive enough to ever raise business, the kushner family business with these foreign relations that he came into by dint of his west wing knowledge? >> if you take the president at his word this young fellow has good judgment so you would think he'd know better. i think probably from "the washington post" reporting what concerned the fbi wasn't so much that foreign countries were trying to manipulate him. i think there must be something much more significant. because the bar for denying security clearance for a senior advisor for the president is pretty high. and the fbi is going to go after that issue and dig in it better be for a darn good reason. and i don't think it's merely because foreign officials thought they could work jared kushner. >> and kim, let's talk about real life and the way people live.

what is that portfolio? are they willing to accept a narrower scope in a portfolio? >> let's talk about the mueller team interest in all of this, and i'll ask two hypotheticals. was kushner really naive enough when another government would say to him, we want to kedeal wh you personally, to accept that at face value, be flattered by that? and was he naive enough to ever raise business, the kushner family business, with these foreign relations that he came into by dint of his west wing job and marriage? >> look, no doubt he was hamstrung by the fact that he was fundamentally unqualified and inexperienced for these roles, although if you take the president at his word, this young fellow has good judgment so you would think he'd know better. i think from "the washington post" reporting probably what concerned the fbi in looking at his clearance wasn't so much that foreign countries were trying to manipulate him. i think that's par for the course and probably more than four countries that wanted to do that. i think there must be something much more significant. because t

hence why you are seeing the of portfolios.s what is being termed the adultification of the soft drinks market, where you get increasingly complex flavours and flavour varieties, different textual experiences and as we've seen in the beer industry and orientation towards more craft products and solutions. we will have to leave it there. thanks very much indeed. adultification, no less! investors injapan were relieved to see the government appoint bank ofjapan governor haruhiko kuroda for another term today. let's go to our asia business hub, where mariko oi is following the story. much relief? use a relieved, but i got excited. he is one central bank governor injapan got excited. he is one central bank governor in japan who got excited. he is one central bank governor injapan who has really surprised the markets in the past five years. it's been dubbed even as we kuroda bazooka because sometimes his decisions have moved to the market a lot. he hasjust been nominated for a second term, from april, by the government. he is also s

what changes should you make to your portfolio right now if any? up next, the cio of double line capital will tell us what his firm is doing and mcdonald's announces changes to the happy meal. >> that's fantastic move. >> it's going to make it healthier and you'll be happier. >> it's impossible for me to be happy right now. i'm with mccm, i'm with you, it's thursday, come on. >> look at those fries they look good, man. >> the nuggets >> got to love the nuggets each day our planet awakens with signs of opportunity. but with opportunity comes risk. and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances. so what else is new? humm..she's doing good. she needs more care though. she wants to stay in her house. i don't know even where to start with that. first, let's take a look at your financial plan

>> we believe in a high quality bond portfolio.e believe we are later in the cycle in terms of the u.s. economic expansions. we have been reducing high-yield. we like nonagency mortgages in the housing market here we like core bonds and we like to .iversify selectively it in banks, the consumer, pipelines look interesting. earnings growth will be robust this year. those are areas we find exciting right now. we were talking about the deficit now. an interesting chart brought by bloomberg intelligence. it is the federal deficit as a percentage of gdp against the treasury yield. it shows that all the way back through the 1960's, there has been a correlation. can the deficit and looming toget deficit tell us where ?o >> 20 trillion dollars economy, we are currently running 3.5% deficits. because of this used, we will go to 4.525 deficits. or 300 essentially to billion new bonds which have to finance that. what is interesting is this is the first time in about seven years where we will be increasing deficits when the unemployment rate i

back in my day, it was portfolio insurance.a certain product and in order to diminish the risks of that, they all had to sell stocks about the same time volatility and some of the etms that have volatility issues have the same problem what happens is they have an etf or a position. it doesn't accomplish or give them the right to do what they do what do they do? they go to other things and go in the vix and sell. it's a lot like what happened with regard to the issues of the credit crash when you looked at the portfolios of some of these toxic mortgages, we focused on the very weak ones and everything priced to that. having everything priced to volatility in the marketplace is dangerous. because it's one point everything graph tats it to. real quickly on the dow jones industrial average, when you get crazy markets, line charts aren't as good as bart charts. you have the open high low close. basically i'm trying to say here is that the key level in my opinion is yesterday's low that was 23,923. even though we have a lower low tod

how the latest wage income and price data are causing a shift in investors' portfolios.is now stock picker, sort of. we talked to the team behind aieq. it's an actively managed etf that uses machine learning to choose a new stock every day. and this week there is an etf for that, we take you inside one that

. >> how should you apply it to create a portfolio >> when you look at your portfolio, there's thousands out there, so let's break it down. this is how -- i want 30% in the currencies that's where i talked about the bigger names like bitcoin and ethereum the other 30% you want in platforms, which includes in it ethereum, but the platform, that's where the new apps are company. 10% in apps, 10% in exchanges, that's where the money is being made and 10% in hybrids here, which are coins that can be used as a currency and a platform let's break it down. so here's our crypto portfolio currencies, you want bitcoin, bitcoin cash and litecoin. those are going after the big case of global monetary use. in the platform area, ethereum, ethereum classic, eos and neo. new things are being developed thousands of people are building on top it. zcash, monero and dash, those are not used just for -- people you don't want to see it, but if you're a big company and you don't want to show things are moving around the world. let's look at the second part. when i look at app, i want to look at things that are

portfolio companies and take that capital and reinvest it in growth is huge.see a net positive from tax reform. regulatory changes have been material and they are showing up in all aspects of the business. but i think most of importantly, we just see a positive business climate coming out of washington. so for years i would say it was neutral to negative. now we see it neutral to positive. that gives business leaders, ceos, board rooms, executives making decisions about building plants and launching products more confidence to do so. maria: do you see any value in the business of gevment? >> they are undergoing a massive evaluation of their overall strategy. there are wonderful businesses inside ge. i think everybody is standing poised to see what businesses they will stay in. whether they polite into separate -- whether they split into separate companies. they are just such a good company. maria: i have got to get your thoughts on the synchronized global growth we are seeing. more with glenn youngkin when we come back. noun, private equity powerhouse gleng yo

and given that, how did the portfolio do?talking to a number of investors and they would be surprised at how diversifiers didn't perform. will: we run a night asset class model, so some of those are down. they have done alright for us during that period. the fixed income is not providing us with much, the cash on bonds -- guy: a lot of people are all in. will: we have more cash strategically than we did. we beefed up the cash there a little bit. again, we've got five different risk profiles. for medium risk, we are looking at high seen the digits in terms of cash, which is enough for us. it is a dead weight for purple he returns, but it is the most save haven for us. you are invariably not losing money in cash whereas gold is not providing that for you. sometimes it does, sometimes it doesn't. guy: will is going to stick around. up next, we will bring you the latest moves in the market across europe. at the moment, a negative richer. not as much around asia. we will bring you the numbers. .6%.tse is down this is bloomberg. ♪

this is where i trade andrs. manage my portfolio. since i added futures, i have access to the oil markets and gold markets. okay. i'm plugged into equities- trade confirmed- and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you. >>> onnajarian seeing unusual activity pete joins us from minneapolis doc, you're up first >> tang a look at macy's with the stock around 24.60, he came piling in, bought 10,000 of the 25 calls that's not a huge move for macy's, but nonetheless 10,000 options is a million share equivalent, so somebody is looking for a relatively short-term move because these were march options again, not a home run, but probably hitting for a single here with this one, and they swung pretty hard with that block. >> pete, what about you? >> i'm taking an eye at u.p.s. it's really interesting. this was $135 the start of january, it dropped down to 127 when we got to february. all the way down to 102. i alrea

because, yes, a lot of retirees do live off income off their portfolios. that is what i've been doing 10 years with my clients t has been very, very difficult. when they have extra income from that income off their investment, guess what, they put it back into the marketplace again. so that helps the economy as well. like you were saying too, the tax reform, this is repatriation. apple is bringing jobs back, bringing money back here. that will be back with dividends, increasing dividends and also increasing and buy back their own stock, but again this is all good for the economy. that is only, you know, goes to just reinforce the idea that the economy is growing stronger, earnings of companies are growing stronger. that is more money in people's pockets, that the pie is not finite. the pie is growing. this is what america is about, is growing our wealth, the stock market is the greatest wealth creation tool in the universe and people from the waitress to warren buffett have access to that. and that's what makes people more richer, better and have a better