Indivisible, with liberty and justice for all. Thank you and welcome happy new year to you all mr. Clerk, please call the roll commissioner cohen commissioner stansbury commissioner bridges that sxementd think outside the box commissioner makras commissioner paskinjordan will not be here we have quorum. Lets take Public Comment before you go into closed session first of all, i wanted to say that you should say with the session you are going into executive session my name is steve with the united public for action i see a i could thinkcy that will not be beneficial to the city and county workers and residencies you kept secret our investments are this is unconscionable the city and completed have a right to know where their pension money is invested this is unacceptable and outrageous and i think also you have members of this board who are officers and female on much overtime commissioner stansbury commissioner driscoll who are City Employees and basically getting extra overtime on our pay and city taxpayers to do other things for example a rally to the San Francisco plea ploy, sir keep tour that comments general you cant direct your comments. Im saying what what is going on this is important for the employees and active retirees i need age explanation of the issue on the executive session theyre having. Before you go into it. So this is Public Comment an opportunity for you not a i think im im saying what i have a right to know what the executive session is about far dwooch secrecy 25 percent of the pension fund to the hedge fund it is a disaster for the city and county of San Francisco i think this is why new york and got out of the hedge funds the threats of their ive lived and worked here my whole life 25 percent is outrageous the people that will benefit are hedge funds people thats example i urge you to take that seriously when i vote in the election the for the city any other members of the public that want to comment. 2 minutes. Hello my name is kay walker im with the iuoe and the seiu im here because of the new election that have raised issues as the literature as new members has to do with the fact that we would end up with 3 safety officers on the board that was the only opportunity that little members have to elect the officers or would be 3 safety officers and other communities not the case they have rules that allow separation and miscellaneous and safety guessing to all be recommended i know youll say we represent you all but in truth thats not the case we see biases and different agenda and i know that people from our rcc sf when they have a commission the Health Commission board i was listening to this a lot and helped to promote it we tried to get a safety over on that board that was all miscellaneous it was the opposite i know this comes from union people the same people that working hard to make sure we didnt get our cola it is threatening and also the fact that hedge funds were fought very hardly by the members thousands of petitions i i mean signatures came in against them do request we have to go through this again, if this gentleman wins ill be prompting hedge funds as other people on the board that are you know elected do we have to go through this again members dont want hedge funds. Okay. But not really. Thank you anyone else that would like to speak seeing none, Public Comment is closed. All right. That ladies and gentlemen, mr. Clerk, call the next item. Next item is what item 3 closed session. Thank you so were going to go into comment. Lets go back into order good afternoon welcome back i just want to make an announcement we will be going back into closed session at the end of this meeting and continue on with the agenda to be respectful to the people coming for Public Comment youre not watts mr. Clerk, call the next item. General Public Comment. Thank you. Okay ladies and gentlemen, general Public Comment everyone will have two minutes to come and speak one card ms. Silva happy new year. Are you ready ms. Lynch great. Why is so, so many speakers and hasnt was selected as heads of the manager and the secrecy of the terms of the contract and why are the fee and Fee Structure for a 200 and 50 Million Investment of our pension fund a secret from the hedge funds manage invested in Companies Breaking up unions it that a possibility why is this person drawing one hundred and 8 thousand in annual pension money to take away revelation from the miscellaneous members of this plan ask him is not clearly stating hes a retired San FranciscoPolice Officer why Public Safety represents 46 percent of the sf and takes 32 go percent in pension payouts while the miscellaneous members make up 84 plus and draw 58 payouts any union that advocates that the miscellaneous should vote for e line casino a retired sfpd person is working against the members interest for a recommendation phenomenon the board please vote for the mother conflicted candidate and remember. This is not allowed in this meeting. Oh, sorry thank you very much. Next speaker hello. Welcome. Im patrick as i address you today im not campaigning. I am going to allude to your responsibility as the board the election but not at this hearing he can say what i want. As long as youre not promoting one commitment over another. Thank you, sir. Why the total secrecy in the lack of transparency with the hedge funds investments reportedly managers those structures craft and customize the Management Guidelines will not be made public to the planned members why not what happened to transparency by this board in 2015 when you approve the hedge Fund Allocation straightaway 2015 those minutes show several commissioners including matthew and commissioner paskinjordan and commissioner meiberger and supervisor cowen and others expressing concern about transparency mr. R mr. Coaker noted transparency quote would dependent upon on the managers hires and kraublg negotiated terms. 30 seconds commissioner meiberger with the Hedge Fund Managers will have investment guidelines included in the contract the trusted insider who are recently kabtd me and requested an anytime shared with met when al was a board member he went to a retreat they had meeting information packets were two on instructions. Thank you. And scald to be shortened. Are you guys supposed to do your fiduciaryy meeting by reading our packet. Thank you another commenter Public Comment is closed. Thank you mr. Clerk, please call the next item. Around action item approval of the minutes of the retirement board. All right. You have something weve provided a copy of an email from commissioner meiberger requesting edits to the minutes. Commissioner meiberger thank you. Ill rptd request the minutes are reflective of the minutes on the Board Meeting this is what minutes are about there was discussions of the value of the assets misinformation about a law and i think that the public needs to know the facts of the swoigs ill respectfully ask the minutes be amended to include number one the gentle consulted al repeated the funds for 20152016 and 2014 were one. 9 percent plus and 18 percent respectfully and then martin said the funds did amazingly well and the 16 and third for the last 3 fiscal years compared to did Pension Funds with assets grandchildren one billion dollars and secondly, the advocates spoke 9 protocol was 4 point plus blinded and more since the fund had a positive return is the benefit of the payments and thirdly, for the period ending 2016 the fund was 7 point plus per year placing s c r s the best performing fund in the history of the pension fund no Pension Funds in the universe earned returns grandchildren the longterm assumes and fourthly quote for the year ending 2016 the fund experience Net Investments gain of 1. 89 employed of assets of 65 million during the Third Quarter further assets increased from thirty plus 9 billion in the year ending 2016 with 640 million in net distribution if we can add that those are the facts and none of the discussion was reflected in the meeting of the minutes thats important. We will accept that reading a motion well take Public Comment at this time and then take a vote. Hi, im back again commissioner cohen. laughter . I most in the meeting manipulates that when john spoke his comments were completely overly summarized that he noted that Warren Buffett hedge funds are up over 25 and van is 65 thats the attitude in the minutes too i want to commend commissioner makras for inquiring whether the retirement portfolio last year mr. Corso what is martin confirmed to retirement system had a 1. 8 billion commissioner makras question and all staff responses to him have completely missing from those minutes which it seems to me to be substitution at its worst i recommend that you pass this motion to delay approving the minutes to the next meeting and instruct the gentleman to rise the meeting by including the minutes by mentions by commissioner makras and the discussion afterward of why that appears this board is directly and come accomplicely with Holding Information to support falsifying by the Police Captain in the campaign wildly calculated by the y m a and example p t local 25 to their minutes who are lying for alto deceive or mislead our fund lost one . 5 billion and thank you. Thank you. If this board fails to amend the minutes youll be come. Next speaker good afternoon and new year clara representing rc sf my notes are not as complete as commissioner meiberger i came also to talk about the fact there is a significant section missing out felt one part of minutes i remember the discussion we had here this is something that came up rc as well weve been telling our members to check the minutes and the video to verify the fact there was no one . 5 million loss out of our funds and shocking to discover the minutes are not accurately regretting those items specifically to actually to clarify and the other items that commissioner meiberger brought up were here to support the amending of the minutes to accurately reflect the distribution with the impact of the discussions. Any other members of the public that wish to speak for item 5 for the approval of the minutes Public Comment is closed. Colleagues just as a refresherer commissioner meiberger has read into the record and i will accept it as a form of a motion for suggesting changes to the minutes is there any discussion. I wasnt present i have to this everybody that commissioner meiberger had to say sorry excuse me. Question about the point of order i wasnt present i presume that everything commissioner meiberger read happened and said it sounds factually correct it is correct to vote for the change i didnt is there a point of order. I believe i looked it is it reflects the record that mr. Martin gave and we have no reason to basically say this is not part of what is included in the minutes. Okay. You dont have to be a witness to what was said. I dont believe so a city attorney. Each year i dont have any additional questions. City attorney can go the commissioner abstain from the vote. It is up to him if he like. Okay. Any discussion on this end any discussion on this end and there was a lot of things said partial amendment of the minutes. ; is that correct thats correct. Partial amend to the minutes lets go take a roll call vote this is a reinforcement on the motion to seconded by commissioner makras. Well on the motion as amended; right . 2016 retirement board as amended commissioner bridges sxhoeblg commissioner driscoll commissioner makras commissioner meiberger commissioner stansbury that motion carries. That motion carries thank you very much mr. Clerk. Item 6 action item the consent calendar. Excuse me consent calendar. Colleagues, any discussion on the consent calendar . All right. Public comment on the cds ladies and gentlemen, Public Comment is closed. Okay Public Comment is back open you want to two minutes. So im going to ask to the kindness of the chair to allow me to compliment you during another agenda item. Sure. One thing offered here id like to compliment you on your new hairdo laughter when i watched the board malia cohen on monday i noticed your new hairdo it looks great. Thank you. laughter i suspect has to do with with our having gotten maturated recently your husband is having a great influence on you laughter excuse me but the harassment training policy all the employees went through would have recognized those mr. Shaw to avoid making such comments. In my First Amendment right. Come on guys i dont know what about today you dont have to fifth over me laughter thank you. I appreciate it thank you. laughter . Okay consent calendar huh . I need a motion give me a motion to accept the consent calendar all right. Moved by the commissioner makras and seconded by commissioner meiberger and can we take this without objection. Item 7. Item 8 action item mr. Coaker thank you, norman and commissioners again happy new year a couple of things quickly ill turn to the narrative we had a good month of december of 1. 5 percentage for the first 6 months up 4. 75 and for the calendar year 7. 4 for the calendar years they were bond and International Equity for private equity were earned 8 percent and real assets and for u. S. Equity up approximately 11 percent moving on to item number 2 himalaya the board approved this for an amount up to 2 million we closed that before calendar year ended we funded it at one and 50 million and requested the manager to let us know when they want to make additional investments and well fund the remaining 50 we withheld because of the uncertainty about trade practices and china and, etc. So they have capital to call when they feel this is investment to make and m b k was approved by the board in november by 50 million we closed. 42 and a half Million Dollars this goes back the board approved this for the foundation back last march up to one and 25 million two months later we received 50 million we recently received the allocated remaining plus 5 million and now the allocation of one and 25 million we have a personnel update two one included is jeremy what was with us for only two months a big startup Venture Capital world all around us he is has a colleague from college or colleague we received quote the opportunity of. Lifetime so he snapped that up such is the nature sometimes with the younger professionals eunice went on matters leaf at the end of the september and delighted to reporter are her be husbands first baby girl was born and looks great on leave until july 1st and now we have another person so vicky owens will be leading the streaming for the next 6 months vic 19cy with us more than one year and a half and shes supported by josh the team as well as by n ap c and bob and ellen and myself we have a deep team which to handle when we have temporary people that for whatever reason are unable to serve we have the depth to put together a group of resources that continue on Investment Committee is scheduled for february 16th next month we have that up and ready to go and flagship part that have is that and then martin will be leading us in the process for allocation which is item no. 7 will mirror exactly what has been done including 2014 and 2011 last month on item 8 as you recall our obviously commitments have jumped the lot from 9 percent of plan nearly 25 percent of plan assets this is a big number were monitoring the Liquidity Position carefully and item 9 that is out i expressed to the board we have a net cash out flow of one point one 4 billion we are expecting in 20182019 we have more than 6 billion of liquid assets between equity and debt to draw down our positions is good at the last photograph of item 9 the o po market was the a dearth of the market in 2016 expected to be a number had high profile r e o and have a value of 25 billion and in addition to that uber and airbnb theyre less condominium to be in a r e o snap but their evaluations are expected to be higher quite a good i po market in 2017 the j curve weve been expanding and increasing our private equity and capital that will not be called for a while the adjudication jackson the leaped up more than 25 percent for private equity and real assets we expect to earn. Can you repeat. Yes. Commissioner our j curve is between all of our xhments commitments we have is right now about say 70 million or 35 base points quite a bit higher than years ago when the real assets were in the high singledigits we jumped quite a bit but expect im informing the board we are experiencing a temporary increase in expenses in challenge more the exception for hire long term returns from private equity and real assets so informational point that our expenses are jumping up but we expect to earn several multiples in exchange for the long term and item 11 the development that i conveyed to the board more than a year ago and continues to be more pronunciations the price of public equity market is a lot smaller than thirty or 40 years ago even 20 years ago the number of public Equity Companies dwindled from more than 9 thousand to this 58 hundred a shrinking of the universe by 25 i 35 percent forcing organization like ourselves to look to decrease the allocations to public equity and there them in liquid assets item number 12 asking forerunners we have this program a started in october youll see in the table provided it is off to a strong, strong start we were up in the first two months by one. 3 percent the hedge funds index is 04 and our hedge Funds Program is up both bond portfolio and stock portfolio in the first two