a million dollars commitment but we want to give them the flexibility to execute their strategies under all circumstances. >> i'd like to entertain a motion of staff's recommendation and i'll make the motion. >> i'll open up for. any questions or comments by the commission seeing none > all in favor, say i. > i. > passes unanimously thank you very much again back and call item number 6 our minded certain item for 2 o'clock. >> thank you, norman and bob and eunice is going to join me as well a couple of things that is a recommendation to make a change and to hire an mp c as our investment consultant is on page 2 n pc is hundred and $80 million in consulting assets nearly $500 billion in the intention consulting it is a significant commitment to the public plans it is a entirely internally opposed and gifted within it's ownership more than thirty partners and no partner owns anymore 22 percent the capabilities of the firm nearly 2 hundred of the employees is investment professionals and have a significant investment to alternative assets their sources entirely come from investment consulting and not from other sources you'll see the credentials on page 3 of the proposed consulting team mr. martin mr. la bow and ms. smith and another colleague to meet with should the board choose on page 5 one of the things that attracts us to this the breath and the depth of their investment research capabilities you you'll see some of the white papers they have alternated over the years and you'll see on page 7 they have an annual conference specifically for pension fund i've talked to half a dozen references that refer to this as the best collective conference they go to much r5r9d by the peers so believe it or not in this is there is greenwich associates provides research among did pension fund clients with the satisfaction with their investment community and any pc ranks one and two and one and two overall for the last several years you'll see some of the recognized they've been given by the various third party's and it is quite a distinguished list with that i'm going to turn it over to bob and u nisz in his and i met with the consultant the consulting team those meeting and the aggregate 6 plus hours and also had several follow-up california's with various firms to clarify certain questions and meet internally amongst ourselves at various times with that i'm going to turn it over to my colleague. >> quick questions by the commission? seeing none, >> are we're going to have a chance to speak to this. >> are they here. >> yes. >> they plan to make in the board wishes about a 15 minute or so presentation followed by a q and a we'll take as long as the board needs regarding q and a. >> thank you. >> i have been on another board that used them as a consultant so a large 6 or $7 billion i can answer some questions about your experience ever using them i did not realize they choose mp c but i've had the experience what he said was true i find the education is excellent their conference was you know very forward-looking they have their allocation and look at it how accurate we were with that, people are so to speak it is a really, really great - their bench is very valuable really deep but i found they're very unusual about picking critiquing managers hard to find the and you find the consultants to do the - this is valuable their beverage bench is so laceration i've not had a bad experience but 13wr5k9d a lot that board we split i haven't 13wr5k9d with them in 4 years i believe they selected one of the people to run santa fe temporarily- >> the proposed lead consultant allen martin was the interim c i o. >> they're an unusual people. >> they selected a lot of small critiques what about minority and women owned firms when i go through this i can't see that. >> i think you should address that. >> but your experience is that something that was presented to you. >> i see they have plenty of women partners and a whitehead variety of people working in the firm it didn't come clear but i want to know. >> i think that is a good thing to address. >> right. >> and it had been interesting after social investing. >> that's the next point so that didn't come across in this report. >> i believe the founder was at the conference. >> okay. >> he did speak. >> there are questions not answered. >> that's a good, good point. >> let me ask you a question obviously where the rubber meets the road is performance one of the most important things the k340u7b89 recommends the asset managers of the public securities and public stoppages and bonds our portfolio has not really outperformed the benchmark so if you could address have 82 you seen other funds have they outperformed on a risk basis. >> yes. commissioner a very good question we're attuned to the same any mp cs the average of their clients are outperformed others plans in 25 of the last their 29 year history so particularly good performance they're to show you some detail but of they're under performances or all of the traditional market classes traditional asset classes and sub asset classes there are solid out performances in the world where the an end to the means is not outperform i'll see that for yourselves and i'll concur with commissioner paskin-jordans comments that m pc is a consultant that takes the less traveled road in terms of recommending managers that are noted typically used by other people more typical to use specialists and smaller managers lift out firms you know of new strategies with proven teams have all the ac men to be successful those are their attributes less of the same old here done that. >> wlo what about the group asia i believe they did now imthat was a time i knew them, they were in the process of meeting them give them that exposure. >> i've not seen that in the materials. >> good question. >> i'll add on to the comment in the presentation they're talking about the assets classes commissioner meiberger a couple of comments the bottom describes the methodology those are averages and fees so when you look at the those numbers versus our performance numbers you get the strategies that are met i want to make those differentiate they're attempting to identify where they've added value by adding managers a couple of caveats it is active managers only. >> if i follow-up on commissioner meiberger's comments and exceeding the benchmarks how did they perform in the last 29 years with the similar organizations like our like arizona or orange county i'm interested in taking our bites and our ranch versus the average of several hundred clients because everyone's is not quoted to the same opportunities again question we didn't ask that question the sample size is pretty small is it there's 7 clients i believe of more than $25.20 clients of $8 billion or more. >> so we're in the right place. >> right the afternoon of the 20 clients has been with them for slightly under seven years and oftentimes when your coming in a new account your inheriting a legacy portfolio and it could take you years to build it more optimum to you. >> do you mind maybe a followup doing that and - >> sure i can say that in this instance i made all those calls called 13 references 5 existing clients, 5 existing managers and 3 form clients to ask what they thought of m n pc the satisfaction of the seat allocation and manager selection was unusually good and in terms of the manager side they stood i take it in terms of level of sophistication and detail grand later to which their consultant are researchers would evaluate their strategies so the references checked out unusually good. >> would you mind sharing the worst of the references so we have a flavor of the other side of that. >> yeah. >> obviously whatever new village their clients would be if they moved on another if they had to learn and do better sections. >> i'll you want me to share an example now. >> yes. >> so one of the cloys for which they were terminated so why were they terminated a $20 billion plan they were hired by previous c i o and that c i o and one or i guess one significant person on the board just were at odds with each other c i was opted or left so the new c i o in terms of how to make a winning pact and create a more you know organization that is working together n e pc was sacred that's been almost 5 years that's coming back to bid sometime soon and look at it rehiring and teaching. >> that was one example the other nothing stood out to me as anybody having a bad experience. >> so i said they're taking a serious look at hiring them back this organization didn't go through the bid process they can select them. >> no, i believe they'll do american people rfp and so this company has a contract. >> and the client has a serious look at them. >> commissioner nothing stood out as egregious in terms of anybody having a bad experience you'll see that as confirmed in the greenwich the scores are unusually good. >> commissioner driscoll. >> i want to ask a question about the forecasting i got another e-mail part two in terms of manager selection one of the things i'm proud of in page thirty and 31 of the brochure that was handed to us of the hundred and 60 observations and the classes they've beat the benchmark engross of hundred and 37 out of hundred and 60 that's a high batting average so taking out the necessities to find out when are they going to talk about themselves i don't know but in case you've not had a chance to look at it. >> call them in. >> at your pleasure. >> okay. we're ready. >> welcome everyone. >> board members i'd like to introduce to my further left is allen martin 46 years of institutional investment experience and he's the proposed lead consultant on our plan tim is the chief investment officer and carolyn smith consultant with redwood city offers and dan also a consultant proposed consultant on the plan that is allen right hand man on the strategy. >> welcome everyone. >> thank you. >> are we prepared for discussion items we have some we can get to many are in a few minutes our bios are other than the the first package we were happy to - were once again we had a relationship with san francisco and lastly i was born if st. luke's hospital i'm a native san francisco it is with great privilege that tim is our c i o 83 he is many credentials he'll help us with the allocation activities we'll engage right-of-way and carlene spent 20 years - she's a strong background and dan is one of the guys was a performance analyst and moved up the firm as a grasp of activities we pursue if you turn to page 3 we've laid out why we think you should hire us we'll talk about sub japantown those views we're a difference and 10 year team between the 4 of us 75 years of experience in investment management in advisory activities i ran the bankers trust for a number of years with the fiduciary officer in that organization we're the largestadvisors as measured by greenwich and in a world with the issues that are complex not only from a investment context but a social context having a large dedicated research team of 49 people with particular expertise in private markets makes unus one of the largest research organization tim b will cover the background in research i'll spend a few manipulates we go to see that our clients do well and i'll show you in a moment the clients over tune has done well in terms of the performances of the programs and the recognized they've received from their peers and from a client satisfaction stand out with that, i'll turn you to page 5 here are overhead attributes of the pc many employees 12 in redwood california the team of dan and carolyn and i work out of redwood city local to you two we're entirely employee owned a lot of smaller consulting firms have difficult when a leader leaves we're oakland by the 34 partners the largest single owner only owns 18 percent we've transitioned that management to the next generation tim sits on the one committee i sit on the executive committee we don't do anything other than provide a trusted advisory with our clients we we have 2 - we have discretionary clients those are set up exactly the way a normal advisory business is a lead consultant they work with the client the difference is that consultant will go to the directors of n pc and select the rigorous process to make sure that all clients are treated equally we don't operate any minimal fund and not involved in we have an allocation process that prevents conflict we think large public funds should indeed retain an outdoor advisors we had one situation with the santa fe police and fire lost their staff and asked us to serve and we agreed to for 6 months we're not jefferson in that because we have 8 hundred and 80 billiards did bulk from public funds but having activities in the other areas particular a endowments let's us draw an expertise from those areas for example we have an internal committee that looks at for positive opportunities and in the investment and environment that meet the e s g criteria page 6 is the rewards and recognize according to our personnel and clients both our people and clients have been recognized in the industry not mentioned orange county was mentioned by the one of the most initiative funds that has an increasing issue we've worked closely with orange to try to identify not only the let them had has no context but what is being earned by the expenditure of those foes so the public can understand sometimes when you pay more fees it is a fwen and simply looking at some fees is unable to just on page 7 we've late out our people we think as investment markets become more complex the commitment to research is more important in managing issues that came forward we believe we have one of the most credentialed groups if in the business you'll see the things on that page our consultants come if a either they're with other consulting organizations that choose to join us people have done things in investment custody or they're homegrown people we've trained up and our teams served that way carolyn came from tackling less than and watson i was what bankers trusted and dan was with us for virtually he's whole career next page package 8 talks about research and the growth of research so you'll see over time not only have the number of people in our research department increased they've been a large growth in the portion of our research people that are non-traditional we believe that there are significant opportunities in non-public or private markets particular in times of stress we want to do the research to help our clients avail themselves up the bottom chart is particularly important it is not matter how many people you have over and over research folks if the lead consultant didn't have time to work with the clients so we very careful manage the number of clients per consultant so it consultant has adequate time to be with that client i have 5 clients i've had for a number of years the oldest san bernardino county i've served since 2002, the orange county and the state of arizona public safety police and fire at $7 billion and new mexico teachers a $10 million fund i've spent a good deal of time with our staff they've been candid about the the complexity of your relationships i can fulfill i'm fully commit to make sure you get the best and brightest. >> the next page is the issue how our clients performed the chart in the upper right indicates client anti performances in various markets, in fact, over the last 29 years since our founding the cloys aggregate has outperformed the 29 years not only on a return basis but on the risk adjustment basis as well we subscribe to greenwich research your staff was interviewed by them they serve one thousand public plans they survey those on the advisors towards the custodian and the money managers we have consistently ranked number one been in the top 3 of the top 10 largest advisors for a number of years be as you can see that there later on in the book if you want to glance on page 25 we'll breakdown into individual scores for various categories we actually pay contemplation to every employee of our ability to be in that so everybody from an administrative assistant for $300 or an ceo bans the ability for outperform finally on the last tjpa palm you'll see our fund clients we've outlined in danger blue out of the ones in the red city offers i'm going to talk about how we approach consulting or philanthropy do you have any questions