Id like to call the meeting to order welcome please join me with the pledge and to the republic for which it stands, one nation under god, indivisible, with liberty and justice for all roll call please. Yes. Commissioner bridges and commissioner driscal my burger and pass care jordan a quorum is present. Okay. Well up it up for general Public Comment i have a few speaker cards. I will start with this you cant mill deny. Good afternoon Board Members im you cant mill denny work for laguna holding worked phenomenon the city for 20 years ive collected 3 hundred and 50 signatures of a petition from workers from laguna hydroand sf general they cant be here they are serving the patient and the message is we the city workers do not want to invest our pension in hedge funds whoever make that proposal needs to go and represent another institution because they does not represent our interests thank you. I have 3 hundred and 50. Okay glen followed by fin is glen here . Welco welcome. Thank you, commissioners thank you, president im glen van lane a chapter president of the i cu for the chapter its been four months since president is an letter of concern to the board in july we have no response i dont not understand why this has on a hang up for your folks under specific concerns of the letter is a basic concern for an open process that continues through the decades to maintain our fiduciary duties and the maintenance of our funds idea that we will take up to 0 third of the funds andes could not it into nontransparent and liquid investments that dont comprises an allocation as weve heard the term defined seems like a slap in the face after all this time ill say that again, thank you. Thank you welcome sid how are you. Im the president an active member i want to say a last months meeting was the first fiat h mite e meeting i attended i was disconcerted by the proceeding i think after all the members that especially the retirees that spoke against the hedge fund not one positive comment from the folks that are pushing for the investment and i also didnt here responsive to what the members are concerned about after all the Retirement Fund a our fund but fund for the members that retire you are as a board compared charged what administering that and it is disconcerting that the board is not responsive inform what the members are saying you know we didnt hear any of the folks that who are youre going investments i didnt see rational from the Board Members to tells us the Board Members who are here and concerned why you believe building it is a good move to invest in the hedge fund and then to put it off for three or four months and a special meeting to talk about this and we werent informed and all of a sudden after all the emails it was cancelled and so to us im a new i havent attend the Board Meeting but it spoke of a nontransparent process we come take the time to come and speak and yet seeing the behind the scenes manipulation of votes your crafting a negative image for the members who fund youre charged with administering a message vision for the members of this redevelopment board and you as commissioners of this board and thats very unfortunate thank you for your time. calling names . Yes. Oh, declined im sorry, i didnt kate . My name is kay walker a retired social working im a member of s c i u since 72 and an person as an officer i want to id like to followup on something that was said it is actually in terms of the city chapter there recent something called a prekraurgs principle it is really the city charters are constitution it talk about a policy or action has a suspected risk of causing harm to the public or to the environment in the absence of Scientific Consensus that is action or policy is not harmful the burden of proof falls on those taking on action she said she didnt hear why those funds are good for us in terms of the principle in the city and county chapter that is our responsibility i know that the city and county doesnt follow its rules but as a member of the system im sxhiftd i do this and also in terms of investments i was online a lot after reading that warren buffet thought it wasnt a good idea and after the reading the article cal which is like another Public Agency which is a huge 300 billion fund of Public Servants so to aspect and retirees they dumped the hedge funds and listen to air m e o had had a great presentation his comments were they were too complex the fees were too high, and the yield was low, they werent transparent, and they couldnt follow or track them very well so they get rid of them i mean this is like a good example of something to compare i suggest if you havent seen this manager you should listens to him anyway it is also another thing your Mission Statement it says that you have to or you want to protect and preservation invest the Pension Trust assets and promise benefits of the active and retired members of the San Francisco Ethics Commission i dont consider them as a member the hedge funds proof of investing if somebody came to my door i dont have any money to invest id shut the door in their face. Is selena followed by david. Silva sorry. Its silva just for the read im not i im not its in the minute i ask you amend the october minutes i submitted a petition signed by the members 69 retirement system opposing investing 3 billion ufo our money 0 into hedge funds on wednesday november 52 other members and myself met with jay and bill we didnt get the message it was scheduling cancels they shared their how did are the see hedge fund i was quiet and left hand and left hand it became clear their experiencing tunnel vision and not he presenting out methods of protecting our Retirement Fund go like highrisk hedge funds the retirement board is being present with one option thats with hedge fund they met with the mba and the local 21 and others net to the best of my knowledge theyve not have they respond to s c i u letter right leg a response to their questions and answers to their suggestions no response whatsoever from this board mr. Bill one of them requested a suggestion that 1021 made to you was they requested an independent consultant to prepare a report other options for Retirement Funds to utilize to protect our Retirement Fund and local 1021 who represented e. R. Represents over 14th thousand members has yet to get a response thats troubling were the under aspirins over 14 thousand members honestly it is reprehendable and now since we have 14 thousand people and you have their monies actually, its our money you shared no responsibility you cant possibly excuse me. Last minute and last word what is the rush whats the rush to do this herb has emailed you and bill subsequential evidence that constrictions the way that hedge funds are the only way to protect our funds im not an expert but hedge funds are risky if were vfdz did state says to stay away from hedge funds and they pill out linen to all your members. Thank you. clapping. David Williams. Good afternoon commissioners David Williams retirees i want to thank all the brothers and sisters and fell members and city workers with are be standing up and so to speak out on this issue there will be many more to hear from in the not so distant future youve heard what i had to say im not going to reiterate i suggest i saw an article yesterday in an investment magazine suggesting Portfolio Managers are getting a 4 percent raise i dont know how accurate it would be nice if we get an 8 percent raise i dont think that the hedge Funds Investment it part of that plan i question whos really profiting from all of this likewise i question why were going into as to how new strategy when to me the system is not broken were talking about fixing a system thats not broken edge area of investment we think we need to be thinking much more seriously about why were doing it weve not heard anything why were doing this it is a hedge against the downturn in the market we come back without having to do risky things if it aint broken do fix it clapping. any other member of the public would like to address the commission were welcome claire. I made it just in time representing the retirees of 71 we had our general membership he meeting we had a speaker who was neutral and talked about the the hedge funds and basically said recommending e recommended that if we were going to attempt any of this we consider a much smaller portion that he was greatly disturbed he studied cal and is well known in california and study unless a member of the commission, the public, or staff so requests extensive and said if we do something take a little bit and try to out and see how it goes no invest 15 percent thats dangerous and suggested that some very extinct consultants be hired several back east no one out here there was interesting to our mini yet when the petitions were circulating i want you to know i circulated both a yes and no there are was an overwhelming response that you have this item on our agenda so you can see that its members who are puc out and im getting emails from members green across the west coast so its not just the few of us that appear before you but our members that pushing on us and asking us to be their advocates here in front of you and to tell you were representing thousands of members that are very, very concerned and i think you youll know and if you dont this is the first time that members have become so actively involved and adamant about business before this board this should grab our attendance and help you understand weve not woke up because none of us are finance and investment exerts but it is impacting our lives and has us worried david said 8 percent we hope for one and a half percent so were not being greedy thank you very much. Thank you any other member of the public then first on my list is congratulate supervisor cohen in her reelection for 4 more years in representing San Francisco congratulation clapping. i like the commission to know that our executive director is preparing a rely to the s c i u letter hopefully distributed by december one being that the special meeting is december 3rd i would like to continue a few items today, the first one will be the minutes commissioner my beggar has in addition and the number of signatures to the petition and the minutes more dlabtd on item 4, 5 and 6 id like the minutes to expand on angeles investments comments in item number 6 and there was a statement presentation by commissioner driscal that was not included in the minutes i want that uploaded and continue item 5 to the december 14th meeting and item 14015 to the call of the chair. Number 5 is continued. Until the december meeting 13 and 14 to the call of the chair could you please a call item 2. Theres any items anyone wants to pull outdo that now. I move we adapt the consent calendar is there a second. Quick i will now opening it up for Public Comment for the consent calendar seeing none, ill close Public Comment all in favor it passes unanimously call the next item, please. Item are there others who wish to speak. Okay. The chair will accept it as presented until the commissioner wants to add thifrg anything fantastic opening it up for Public Comment on item 3 seeing none, ill close Public Comment could you please call the next item. inaudible thank you. Thank you good afternoon board menus mentions a minor change and recommendation in the guidelines and ill ask mr. Shaw and the lady to briefly explain the rationally. Were asking for an increase in the range of 035 to 45 to 60 this is the expansion of the names of names their target go range is the market range over 25 billion sense weve hired them it is has moved in 5 hundred and 40 names fear asking for bandwidth to better take advantage of the opportunities thank you. I have nothing to add. I will open up for Public Comment on item 4 sierra club ill close. And ill move the adaptation of recommendation and any discussion. Can we ask questions. Sure. This is in age let me see reporting on the bottom of the page regarding china no addition for the market to have a more placement roll in china can you expand on that it is constructive expand. November 17th monday it was posted it was mid october i think this is in the memo that the shanghai correct with the 3 hundred only available to u. S. Investors if you have a x c license theyll be trading in hong kong and available in our portfolio very good. For monday. Im looking for mortgage our saying up to 60 names would you like additional flexibility beyond 60. We expected 50 if they want to go higher as proposed not guidelines theyre seeking to get for diversification. Theyre allowed in you take a look at the guidelines theyre allowed to own up to 15 percent they have flexibility. Any other questions or comments seeing none, all in favor, say i. Passes unanimously call item 6 please. Thank you, mr. Nick evens and Board Members turning to the Staff Research the initiatives a couple of things updates on previous items that were in closed session in september at the september Board Meeting the board approved a multiply Venture Capital it closed on october 15th at the october Board Meeting it did close i should note somewhat a smaller amount than we asked for up to 35 million to close at 36 meeting and the october meeting it approved an obligation a special situation strategy this accident close subsequentially severalty weeks ago and it closed i believe our investment is 2025 million and hon company in september the board approvals up to 50 million in an asian backed beauty strategy closed on october 4th are there any questions on the 3 . Yeah. 5 up, 50. Board members i am particularly delighted to announce the postponement of ms. U. S. Ma question as the senior Portfolio Manager shes served as an analyst on our team as spurs for the last 2 years 9 years total and other years anothers Morgan Stanley this was a vigorous and competitive process that included 3 interviews as well as written materials ms. Ma just distinguished home sharer for several reasons shes a it starter comes with her a game everyday and the second shes a Great Research third is she conducted extent e excellent Due Diligence on strategy whether things eunice is on it the next do i day shes on top of things and shes a team player that was not an automatic promotion by any medians it was competitive is he distinguished herself for those 4 reasons and jason l ill invite you to make comments. I was delighted to interview eunice and shes joined the sf team in the last year in 2013 and progressively herself to say a be a variable asset ill reiterate this was a rigorous process kind of an interest if the position from cross the United States so again, im very hemisphere to welcome eunice in a new position on the team and shes got a lot of work cut out for her going forward. Eunice any comments. Thank you guys for the kind words and grateful to be given this opportunity and have worked very hard since ive started at San Francisco and will continue to work hard if not harder in my position and thank you guys again for this wonderful opportunity. Thank you Board Members any questions . The recruitment on our two yes commissioner driscal still going on. Ill wait until our finished the recruitment for the other two position it is advancing and continuing its just time consuming process so i think one of the two most important things we do in addition a hiring managers we hire our team theyre the ones that add value down the line were being pursuant and thoughtful towards that regarding the current market we all took note i believe the market volatility and the quick snap back the end result we ended in the exact same place if one had not noticed over 6 weeks it would be been flat but it was noisy you up and down both ways ill note what is beyond the report the job numbers the sheer number of job numbers creation has been good actually, the new jobs for the 12 months is the highest since 1999 quiet expressive thats good it brought the unemployment down the worrisome part it is the make up of the jobs a disproportionate of them are going to lower wage jobs so were not seeing much in the way of job growth that led to more enduring and more confidence in enduring Economic Growth so that is thats on the Positive Side theres the one for about but its good w