Transcripts For SFGTV Retirement Board 3916 20160322 : compa

Within that time period. Where as San Franciscos popules is increasing at a high rate with projections over 1 million resident in future years and all those residents need open space sw recreation opportunities. Therefore, be it resolved the coalition for San Francisco neighborhoods opposes any use the palace of fine arts that is not for the primary use of use for arts, education, cultural or recreation purposes and activity as opposed the use of for profit lodging components. I have a copy of the resolution. Thank you. If anyone else would like to speak under general Public Comment. I know there is a gentlemen who is about to step in who would like to address the commissioners. Wanted to say i have never really testified before you but before i say anything else i want to thank you for helping me raise two daughters in San Francisco and say that from the bottom of my heart. Im here to again to speak for them as a soccer dad. My name is [inaudible] as i told you before. I help start a program for the Public School that may children have one still attend called star king elementary. It is a school that benefits greatly from the rec and park ability to provide fields so that it brings families together. People from many walks of life. The most Diverse School in the San Francisco School District is star king and we were able to bring different programs together through soccer and that program tunes continues and thank you to your support and Phil Ginsburgs support a lot of kids are served and served well. Before we spoke about it deltas and sorry im bringing up soccer but it is clearly a passionate thing in many of our lives. There were people here representing private soccer clubs that believe things are not well in the soccer community. Im deeply bothered by what is going on. I believe that you as commissioners Phil Ginsburg as a terrific public servant, are doing something that is vital to the children of San Francisco and that is providing playing opportunities particularly soccer. Let me tell you, it is a huge game. I dont want to sound like that orange guy but i mean it, it is important. It is very very important. The problem we have now with youth soccer is that it has become a multiMillion Dollar industry. Private clubs like those who came to speak with you before are participating in a level of price gouging that is making it impossible for middle class and working class families to actually participate in the game. They want to take over the league that now manages things and provides opportunity for all children. Because it appears that their greed knows no bounds. You as good Public Servants are providing hundreds of thousands of dollars in subsidies to these private clubs. [inaudible] just about done. As you consider the cuminitary which you got which is item 12, please understand that is a very small number of people that play or participate in soccer represented there. The vast majority are families that care deeply about doing this right. Anyone else want to make general Public Comment. If there is anyone else please come up now. Thank you. Commissioners sorry i wasnt here urldier. My 99 year old grandmother died. Sorry to hear that thank you. I serve the city and sf youth soccer as a volunteer. I board did meet yesterday with Legal Counsel and deliberated at great length, you listen to the full audio of the Board Meeting about our disputed election. We discovered many serious election irregulararities and detailed those on the website. After a longer deliberation the votive 120 to nullify the election and hold a new one april 22. We felt like democracy was meant to be served in our organization and did not occur. We will act in good faith in the elication and be as transapparent and inclusive as possible. Since you have heard from the people we made progress on many of the core issues. We are also working act ivly with the Mission Youth Soccer League to have access to all leagues while preserving equitable use of city fields. Every club thought of breaking away to escape the hassle of cooperation. Every program, every aloo ins would love to break away and apply its own Public Benefit program. If any of them did so the burden would be on them. The birdsen would be on them to prove the following to prove they have no history of violating your permits. Paid coaches can not promote undue influence and control. To prove the clubs held annual elections. To prove that they had not earned millions using the cities free fields. To prove they are financially sound. To prove that low income children can play for free at least no more than 50 a season. The burden is on that to prove all this bauds because this is what sf youth soccer does now year on year. The dispute or election is proof of one thing, it is proof sf youth soccer is working. It is proof that paid programs are being regulated much as they might dislike it. It is proof that some protections are in place though more are needed. Thank you for your time. Thank you. Is there anyone else who wants to make Public Comment. We are going to item 10, closed session. Any Public Comment under closed session. This item is closed. Commissioners we need a vote as to whether to go into closed session or not . Entertain a motion. Move to go into closed session. All in favor; and we now w whether to disclose all discussions. Move to not disclose. We did item 11. Item 12 any commissioners matsers . Nope. New business . Nope. No Public Comment. Item 14, communications no Public Comment is item 15, adjournment. All in favor . Aye. Thank you. [meeting adjourned] 3 minutes. All righty so we shall convene the Board Meeting all right. Thank you all for coming mr. Clerk would i like to call roll please. Commissioner cohen will be joining us later commissioner meiberger commissioner bridges commissioner driscoll commissioner makras commissioner paskinjordan i believe is here commissioner stansbury a quorum is present thank you well start with the announcement first of all, we will go into closed session be our first item for the day any members of the public here okay. Good on the ground well go into Public Session after the closed session any members of the public will be letting you know well go into closed session so the chair will entertain a motion to go into closed session commissioner confirm Public Comment. With any members of the public like to comment to into closed session to discuss the matters hearing none. Public comment is closed. A vote is not required okay. So well go into executive sessions any members of the public your excused we will reconvene what w when were done if youre session. Okay good afternoon, Everyone Welcome back mr. Clerk can you tell me what item. On item 4 general Public Comment oh, yes general Public Comment how could i forgot mr. Roth man, i have a card for you were going to go into general Public Comment a reminder we have 2 minutes 3 minutes everyone 3 minutes. Thank you. Good afternoon. Im richard roth man rertsd city worker and 3 items one is when i was coming her i recommended i called the it department a month ago to ask for help about south my password and realized none returned my call maybe the board wants to find out about the it and the hedge funds how come i read negative articles an article yesterday in the chronicle about hedge funds and their returns are not better than the average returns so you know hedge funds are so good why not good articles again hedge funds and the final item yes. The chronicle yesterday. An now dead piece. Anyone can write and submit. It hazard to be approved by somebody i dont know what the chronicles standards are and the other item will i dont know just really bortsd me to my left is the city has agreed to attorneyss that worker or work for the spreadsheets city and good on to the justins judges will change the formula when they do reciprocal agreements i have a been around the retirement issues i thought everybody what is everything was a city Charter Amendment i thought everything has to go through a city chapter to change anything about retirement issues and the other things a matter of equality it is ironic those attorneyss will get an increase in their retirement or change the base to get more retirement yet the city wont drop the lawsuit and pay the 396 retiree theres no reason why this board you know they wrote a letter saying there is money in the funds for the attorneys so why cant they write a letter to the city savoring there is money the fund for the pre96 retirees, you know, i find out some of the pre96 retirees pension is 18,000 a year it seems to me ironic the city can take care of the attorneys or was advertising take care of themselves yet not the pre96 retirees something is not right thank you. Thank you before we go further in Public Comment i want to announce well continue our closed session at the end of the agenda so we can stick the clerk will take the roll what is published and go vote not to disclose at the ends of todays agenda members of the public that want to take a step back in general Public Comment now is your time john. No, hes not john fur land. Herbert wiener mr. Wiener why not you speak youre the closest. Yeah. Herbert wiener i like to support what the previous person stated it is unfair the pre96 people are cheated out of their cloolz their coworkers and you know so many people that come to mind when i think about 2 they shouldnt be cheated the hedge funds you can losses our shirts if there is places that went bankrupt all of those bulbus securities they are not regulated their semi regulated and thifrldz i didnt get any retirement packet today hopefully that is an exception to the rule i normally get one thank you. John fur land i believe next. Yeah, he got to speak on 3 items 3 things just briefly touch on the first two this hedge funds you guys are still dont get did hedge funds are not an asset class only a way to invest in good portfolio assets if you find portfolios manages with to be honest the hiring the ultimate have felt guys quotas a cue because he knows what the good funds hedge funds out there and has person reps with them so you just hes wrong as for a second item ive talked about scheduling a lot i hope with the hiring of ms. Burr necessarily she seriously be looked at the dont get complacent things are wed the japanese bond ill not beat this would the third with only i have not yielded discussed the idea of momentum and it is funny people focus on hedge funds your losing money in International Things their dramatically under professionalism up 2 percent over the last 5 years okay over the last 5 years thats 26 and 22 percent of assets together ill argue that that that performance was forecastable 4 or 6 years europe was in a huge mess starting in early 2010 and two or three years ago china was transitioning that is difficult for emerging markets you can read this any day of the week the momentum and the relative strength i favor has been heavy researched and now the factors they like to talk about ill suggest that ms. Burr necessarily when she gets a chance to look at this is the 7 anniversary of the beginning of the bull market i dont know if beer in a bull market but my message dont get complainant the longer 24 goes on the banks play their ridiculous games especially in japan and europe the bishtd or bigger the risk the hedge funds allocation gets by adjoining june of 2011 that is 3 years after that was first proposed you guys have to act more quickly. Thank you. Any other members Public Comment is closed. Mr. Clerk, call item 5. Item 5 age action approval of the minutes. The february 10th rent Board Meeting a motion to accept the minutes. Move we adopt the minutes take Public Comment seeing none, Public Comment is closed on item 5 well take that without objection. Well take that without objection. Mr. Clerk that that motion carries and item 6. Ax an action item with consent calendar. Thank you very much a motion to adopt the consent calendar or a discussion . So moved motion by by commissioner paskinjordan lets take Public Comment on consent calendar or the no comment on item 6 well take that without objection. If we can came back take this well take that without objection. That that motion carries call next item 7. I believe were going to item 8. Oh, excuse me. Im sorry it is actually 9. 9. Were going to 9. Yeah. Take a few things out of order. Negligent 9 discussion for the president Portfolio Update. Im looking to see in cambridge is on her way we have art very good commissioners this is our review as presented by primarily cambridge for first private quantity followed by the access. Thank you. Art any comments. Sure first up will be Portfolio Update for the project for the portfolio it is a longer standing Portfolio Performance were very, very proud of the recent performance is very strong our challenge will be to maintain the level of returns weve enjoyed historically this is a high evaluation with that, ill hand it off to the team to walk you through. Good afternoon, commissioners were here to present an update on the private program the three of us represent the team members from the private Equitable Team im the San Francisco and covered california is here weve opened that office this year but bans the Boston Office and youll see him regularly audry it here regularly but behind the scenes working hard on the program and were part of the dedicated private Equitable Team with cambridge and we have 15 strong across the office the San Francisco boston and london as well as other places in terms of relationship with the retirement system weve been working with you. Close to 2 and a half years on the private Equity Program in terms of slides that is in your packet well not be going through all of them but highlights on the portfolio snapshot of that and what weve accomplished are last year in some of the areas for the exposure for the year to come. Were thinking maybe 20 or thirty minutes for the presentation and the balance questions from the board does that work. It works for me. So can you just turn the page to 2 of over index the executive summary quicken through that art mentioned the program has performed well on a relative basis investing in private Equity Program for thirty years and 2014 was a very productive year that was 8 hundred and 50 millions in candidates in 2014 was as productive yet the program condominium close to a billion dollars and 20 managers of the 20 managers 11 were new and those new managers developed those relationships in cultivating those was a lot of harrods across the staff and our team the program today f is building towards 18 percent allocation for last year and it currently at 13 percent so similar was presented to you at 11 percent for continuing to build there and continuing to enjoy the real strong distributions that is particularly from the buy out investments from last year funding raising environment was competitive and you know youve seen weve brought into the recommendations a lot of assess managers or ones that were getting allocation cutbacks but the ones were working on developing that relationship early and fast as well as cambridge were working well and collaboratively making individual introductions so we are choosing the landscape its great were getting ideas from our team and staff and vice versa former biweekly polls and schedule strategy sessions but were in time on a daily basis with any member of the team on the investing does the approve comboikts market we continue to prioritize where pockets of value we see in that mathematic and where to make the recommendations looking at page 3 this is a quick at some point of the program thirty years plus the 2 youve invested and currental 12. 7 percent and the years committed 7. 8 billion and through that has generate in terms of value 3. 3 billion in value if i can move to page 4 a quick at some point of the performance of the program youll see the bar charts that is down the middle there were comparing the performance for your private Equity Program in various periods with the last 10 years and 5 years and 3 in one year those are the returns for the periods San Francisco net i r r the blue bar as you can see in every period compared with the s p were a more global index as that moves that direction and compared to the n n f i and in both the long term and short time period of the program it has outperformed with the public entities. S p plus 5 hundred and why are you seeing our benchmarks. So you can add on top of that weve got since intercepts yes, i did. 8 hundred plus with the s p and our calculation as as an npr b with the apples to apples calculation in the 10 year period yes, i did. 4 hundred plus over the s p do you think that is appropriated plus 5 we think that is a high bar today, i also s p plus 3 is probably you know what we would guide to in terms of whether youre taking more reflexes there are lock ups youre feeling