Get develop the relationships early as well you know be quick in terms of timing and motorcycling with that in terms of the strategies that our team as well as in conjunction with the Investment Team 59 spurs has been working collaboratively in identifying the right opportunity to target for terms and getting in and making the introduction working all understandably from you know relationships from your staff and cambridge to help develop those and get those allocations on the investment side its a very interesting market on the private investment we continue to search for pockets of values and as well as adding to areas where the Systems Program is relatively light in the explore if i could turn you to page 3 a snapshot of where the program is today here we have some graphs on the bottom and the bottom will show on the left hand the Equity Program and the right side is excluding your investment the responsibility has been called adopt and paid in by the system your First Investment in 1987 and what it is valued 59 today the green is what has been 12krsh9d back to the system and the imply is what is left in terms of value and help within the managers is so as you can see from the private Equity Program that one. 7 times the dollars you put into the program has generated one directing and 70 a interesting evaluated to one 60 in terms of the performance again Strong Performance on a absolute and relative basis and on page 4 where since inception 16. 6 percent n i r of the 10 year 15. 7 periods of time so you know the longer than term has delivered a healthy premium weve recalculated the premium in our market quantify and its our cambridge p m e basically nears a public equivalent in and out of our program and investing in the peer s and p 5 hundred since inacceptance and seven hundred and 90 points in the last 10 years you put in what is typically seen as a green bar which is the regular annual average count return rate for the s p 5 hundred that is a similar story in the 3 and 5 year periods very strong Public Market that the private program has trailed but i would say it is hard to keep up with strong Public Market in the shortterm particularly due to the Market Private market vaegsdz and the permits find but in the last year private equity has been a strong performer in the last year that private equities has up tacked the Public Market i think you know with the next page weve see here in terms of the venture its been a strong component of that driver of outperform so i wont spend 7 8, 9 on the chart on page 5 we wanted to provide the information returns and break out and this is through various multi you year periods i noted earlier your Venture Investments have delivered strong perform in the last year one of the big drivers within that you have a big position in uber with one of our managers thats really gotten a big lift but over the longshoreman the buy outs laughter your buy outs have delivered strongly over the long term and we compare those results here you have the cambridge benchmark in the middle table there and then on the bottom are the Public Markets returned and by comparison. On the next page page 6 we just wanted to showing you the directing kraeths from each one of the classes for our managers and on the left side is did year the 12 months ooefrj averaging thirty and since the inacceptance as i mentioned venture was strong in the last year and big driver as well as buy outs bear in mind venture is about 25 percent of our portfolio and buy outs are 50 percent thats the strong outperform from venture managers in the prior year period and since the inception the back beauty fund have delivered the most in terms of asset returns the next page is a breakdown of where the program is broke out by each one of the sub asset clauses as well as emerging versus developed markets and the top is the portfolio including energy and the bottom the portfolio exuding copyrighting and the lefthand side is whats in the ground what has been invested in terms of n e d and the right is the dry or the unfund amount just a few comments as noted in the past emerging markets overall is light were continuing to visit and build back the venture most of the emerging xhoesh has been in a Market Opportunity but buy outs are starting you made commitments in 2014 that will add to that and the emerging markets b will continue to grow and as you can see on the dry 30u6rd does the emerging markets are the ones added into the dry powder are a larger component on the next page on page 8 a chart showing the program historical cash flows from the private Equity Program and the top half of the chart are our distributions and the bottom the trktsdz and the different colors represent the different classes and the wine chart shows the magnitude of the net flow the positive and negative for the most part the program dipped into nothing else cash flow just after the Global Financial crisis but over the last 5 years has gone back to positive net cash flow with a strong cash flows in particular in 2013 so those numbers or so for the first half of the year are that the orange is what repealed by buy outs as you can see in recent years just for examples in 2013, the buy outs sdrksdz out phased the capital calls probably about 3 to one overall the program was 2 to 1 in 2013 in terms of distributions versus capital call well see something similar in 2014 with the increase in commitment pates for 2015 probably in the near term Going Forward well see a dip down in terms of the reduced amount in terms of the casual flow as we see those managers calling down capital. Please note the only way to increase the size are in the underground portfolio is the blackwood line blowing blow the horizon; right . Eyes were getting more money back and we introduce another Going Forward. On page 9 this is another cut of the program and this is actually going through at a one level deeper and looking at the Company Level data for your flying fund and breaking it out by the geographics xhoesh and stage exposure a similar story on the u. S. Side 3 heavy on under the circumstances west coast this is mainly due to the go back in the venture explore we have and on sector you know a the larger chunk to technology probably plainly from the venture side as well. If there are no questions ill move to the observations on page 11 hitting on again 2014 the very productive year for the Equity Programs in terms of commitments over 900 million exuding energy and that is over double the amount that was committed in 2013 in terms of new managers 9 new managers in private equity xhooud energy and 11 reups and passing on made strides in terms of adding adding where the program was light or the value valuations we find are more attractive in terms of concentrating behind the name this is bigger bets this year in backing the managers you have committed to and the average commitment size was around 51 million versus an average of 30 million for the year prior and again, just to reiterate with the higher level of commitments as we want to you know get closer to that target allocation the in increasing the commitments that it is likely that the net cash flow will go down it will be reduced whether it its hits negative or just up it indicates it will be reduced Going Forward in terms of passing on page 12 we ran our analysis and updated it recently and came up with an annual target pace of 7 hundred to 800 million for a 16 percent target if that target it increased obviously well increase the suggested annual pace as well and several fooshgdz go into getting to that number and why that is increased from an earlier estimate last year we had six to 700 million moving the Energy Investments to the real program and then also the stronger than expected distribution that has occurred for the program in terms of the number of relationships this is an ongoing discussion and with the Investment Team at the system i know you know the general view is the continued concentration of the best names and manage the number of relationships you you know youll have an inception a total number of one hundred plus manager relationships and probably will 60 are the ones that are ongoing youve continued to back and thats a healthy number but we reason there should be changes as far as continuing to back the higher names and looking at addressing to areas that we have less exposure and take advantage of the manager upgrades at this point im going to turn it over to scott who will go to the sub assess clauses. Thank you implementing the all the investments have been active in terms of venture ventures is far by far the most active in terms of voluntary lot on paper performance is outstanding i emphasis on paper there seems like a lot of new raise and the businesses are still in their developed we not worried about the class as a whole right now were worried about the later stage venture weve seen the hedge funds and the stages its a thats a bad thing the idea of raising accident radius weve been very excited to introduce the systems for the venture manages their will fantastic about letting us pinch ideas and letting us meet with them the systems is fantastic and new york managers love to be able to say that San Francisco thinks their legitimate its you know kudos to you and use to your advantage were definitely looking at europe and asia its theres less capital overhang we need to be selective in can you talk about that. Growth area is a growth area of equity weve make introductions in that thats a unique market it is also competitive trying to make sure that were looking at the facts its segregated weve moved further upmarket ta and justin and tavrn i cant theyre doing more buy outs trying to fourthing who is the break out so ta has i think its roughly say 4 billion and so their competitive the buy out more than the Equity Managers i know that this is an area we continue to introduce spurs two i know trying to get ahead of next crumbles youre getting to know the managers uturn to page 14 our impression of your buy out managers you also continue to look to see they continue to perform but to date theyve done job the focus with the buy out managers trying to see who are the next one and were filling that avoid small cap we like the Value Creation is a good deal thats the component of taking Million Dollars business to a 20 million a higher grocery and selling that business for a higher multiple. So theres it data later on but sector focus manager is a focus something we have an idea that shows the sector focus and manager outperform generally i was. Youve done a great job of getting more assess and part of it is making sure were finding the right managers the special situations is a component weve been flexible with and its a Dynamic Market a traditional special strategies theyre not attractive and it is not a lot of things weve look at the turn around key managers so the deep value manager and this is an example of this platform. Ill let audrey talk about this and despite this is in the u. S. Its been a busy time from asia and sing important ive met art a few times now and in hong kong the Investment Team ta is active meeting the managers especially in the markets where the opportunity items where the managers view and stay on top of the involvement thats an active involvement with the commitments in the past year to high quality managers we think that builds a Strong Foundation were committed to look for the themes and the outcome is the environment and the merging markets Going Forward we think early stage venture in china more attractive giving the vaegsdz in the late stage but there are positives about the managers that continue to execute well, there we that there are certain themes playing out the raising middleclass and the health care and the potential restructuring given the slow down with the market particularly china well be looking at 9 opportunity but looking at opportunity to be addressed to the current roster you have that will add complimentary emperor and return out of atas we continue to be hard at work with theres been a commitment made to Latino America we think that sets a Good Foundation for the portfolio and we have listed opportunity to africa well continue to be disciplined and make sure were picking the right managers and not just filling the gap tweezer keeping our id say and areas on other gloriously link ill wrap up in terms of the portfolio were pleased with the progress we continue to work hard to find pockets of opportunities with the portfolio. So ill quicken talk about the counter trends theres a lot in here i seem you may have questions ill try to keep to shorter for you as you mentioned performance is fantastic and strong directs for 2014 has been fantastic 2 to 1 ratio is great the fund the tables that gps are now in control of what we do were advising clients to be cautious and trying to make sure theyre picking the right relationships good news here is that the ftc is getting involved in the early stampedes we view that is a positive the items we should expect more to come the kind of highlevel themes on page 18 of concentration and out sizings the best managers will continue spurs done a job and expect difference indication and geography is critically important and manager selection maneuver you have the definitions of difference indication to outperform long term and coinvestments is a popular topic and im involved with the Current Services i would say that there are reaps to do that but most institutions lp are not set up to do that we advise them to building very careful if they think about going doing this the way you set up your system apologizing alternatives make sense and real estate i know this is being formulated appropriately it is a given the market were advising again, people to be cautious. Talking about the fcc talk about 9 limited partners. Sure so was it means there will be greater transparent for limited partners as well as if there would be less ways for llps to be taken advantage of hidden fees of what youre not paying for. I think were already seeing some of the focus starting to move to a hundred percent offset of contributions of the monitoring fees just to avoid the scrutiny from the know if focus thats a friendly you know to the llp vandal Going Forward so again, this is what the ftc spotlight on the equity this will help the terms for the loophole will that. I know that the fcc has said they have fees i know i mean, i that havent seen the list its confidence as we think about the terms of the ftc pushing on the firms is there sort of a dividing listens between the bigger and smaller firms that can easily comply are they doing some of the things its not that big of a change for the firms we partner with. I would say that the industry in the community has been discussing those issues for years now it helps when theres a spotlight and help from federal government with a big stick i think their involvement is the only way to buy even faster and reduce the number of exceptions out there i have to say in our portfolio many of the gps are in compliance. Okay. That was what i was trying to ask thank you. Yeah. I think well go through it weve got quite a few appendix and hit the highlights if this years questions im happy to answer any questions you may have. Only page 19 in the the highlight the proliferate equity continues to deliver strong returned thats a long term asset class weve focus on a 15 year numbers cross the geographies and different strategies it has out performed to the Public Market this is the private equities driver in the portfolio ill skip over 20 it is the Long Term Strategy i think we recognize that and in terms of thinking about 2015 as a pipeline and the opportunities you know weve included slides here to that have guided our thoughts in terms of which how that relative evaluation is attractive and hue we should be positioning ourselves Going Forward in terms of fundraising were paced up from 2006 to 2008 but its a healthy distributions and the capital st. Is coming back into the market with the private equity and as we think about that we paid attention to the swaegsz e evaluations that those managers are paying making sure were not being perturbed pressured to put 24 money to work so this is something perceive been looking at and across the regions and geographies as well page 23, 24 the great returns in terms of the fund size the punch line here the smaller does better in terms of home run types of returns but if i want to protect capital and theyre in u narrow that range of returned youll have it in terms of tighter returned and less losses well look at the spectrum of investment size we keep this in the back of our minds to look at the straenldz and the focus on investment scott taunted this on 25 and 26 youll see sector fund in the u. S. Proefbl possibly from europe as the market continues to develop our hypothesis is that it should do better and the agency inadequate has outperformed in terms of higher and on a multiple basis to wrap up in in terms of of choout so for an page 28 the managers selection and the alternatives is hugely important its important to start early in terms of building the relationship and the Investment Team has done an incredible job not only in the u. S but abroad that has resulted in several assess constraint managers disr disbursement is