Introduction of new items . Seeing none, Public Comment is closed. Mr. Clerk, please call the next item. Any Public Comment on items not on our agenda . Seeing none, Public Comment is closed. And mr. Clerk, do we have any further business . No other. Chairman we are adjourned. My s. F. Dove government t. V. Moment was when i received a Commendation Award from supervisor chris daly. Then we sang a duet in the board chamber. [singing] happy anniversary San Francisco government t. V. Happy anniversary to you. Happy anniversary San Francisco government t. V. Anniversary, anniversary, happy 25th anniversary to you. We have a quorum. Were going to go into closed session and regular business will mort start before 2 00. The start rules listed in the agenda are in effect and reminded that Public Comments may be limited to an individual for two minutes. Is there a notion didnt into closed session . So moved. Hearing no Public Comment, motion made and seconded. All those in favour say aye, and opposed no. Do we need to close the back door for closed session p . All those this favour say aye and opposed . That tables us to approval of the minutes of the june 12t june 12th meeting. General Public Comment. Any general Public Comment . My a 44 year member of our pension fund and tile you something today, that Asset Managers wont tell you, hedgefund managers wont tell you and Investment Consultants wont tell you. In the past ten years, public Pension Funds have paid out billions of dollars in management, performance and consultant fees and what do they have to show . Average retainers of 67 . In the past ten years, an investment in the s p 500 index is 6040 and the real estate index would have outperformed every Public Pension Fund in the world. One of the reasons that nearly all public Pension Funds are underfunded because they are overdiversified in investments such as hedgefunds. Over diversification reduces investments. Over diversification is for investors that dont know what theyre doing. Stocks, bonds and real estates, 33 in the s p 500, 33 in a 60 40 balance, 33 in the real estate index and one in cash. If you do this over the next ten years, you will outperform every pension fund in the country. Mr. Heb irkil. Thank you. Over the weekend i received an email from al telling me that youre up to 7. 81. How this fund earned about 2. 4 in a month is stunning and were happy. Were delighted. The retirees are grateful and i just want to acknowledge what a fantastic jump that was and all of you take credit for that. Also, the poa did note that the Institutional Investor has named the sf employees retirement system the public plan of the year and thats extraordinary and that deserves Public Notice to whatever extent we can do. Its such an extraordinary accomplishment and thank you to all of you and i will be for careful in my comments in the future. [ laughter ] i will call item number 25 which is retirement Board Members good of the order. The entire retirement system members, the employees of the retirement system starting with from j to our newest hire who have participated in getting us to where were at, doing all of the work we do, that each and every member receive adom case signed by the board and some time in august that it be entered, ac acknowledge and distributed to all of the unions, reminding everyone that these members that work here are part of the family. They are members of m etch a,ea1 and a variety of others. I think the accomplishments that these employees have performed over the years that have gotten us to the point where were at deserve to be acknowledged normally by the board, deserve to be in their personnel files so that this history becomes a part of their work history so wherever they go in the future, it will go with them. So i ask the board to support this by consensus. That sounded like a motion. Seconded. So i can ask by consensus. So i dont the calendar has a discussion item on it. Ok, a discussionitem only, i assume a draft would be available at that time. If so directed, for the record and you would accept mr. Casiatos assistance in writing such a letter . Certainly. I welcome anyones. So, then, this is not an action item and so ordered. Thank you. I would like a consensus from the rest of the Board Members at this time. Any Board Members object to what mr. Casiato suggesting . Ill second the item. Any addition or deletions. Public comment. I just noted that carmen shoe is listed as and sen absent andi expected should be listed as excused gimp t given to what i r to be circumstance and i think it makes a difference with regard to attendance on the board. I would like to suggest she be properly designated for or absence, thank you. Please make the correction. Via correction, shes absent and didnt ask to be excused, right. Right. Thanks for bringing that to our attention. However, no further Public Comment, those in favour say aye and opposed, passes. Item six is the consent calendar and any corrections or deletion or any items set aside for separate consideration . Motion to adopt the consent calendar in order. So moved. So second. Is there there a second andc comment . Motion made and seconded and all those in favour say aye and opposed . That takes us to item 7, the investment calendar. Item number 7, investment item, to hire jp morgan distribution management to manage and distribute security. Board members, when gps private Equity Managers have issued distributions, they may do so in cash or they may to soo in kind through delivering shares to us. For the past 1 15 years, we have been trading internally and we want to put these in the hands of professional management, professional traders and also to improve the efficiency of our own operations and the resources that we have available internally. Ill ask kirk to further introduce the item and work through the rationale for it. Thank you, bill. Ill expand on what distribution management is and talk a bit about the history. Ill describe a bit of our process and get into our recommendation. As bill described, private Equity Managers, via growth have a variety of ways to realize investments. Most commonly, they do the shares and initial public offering, a listing of those shares. The general partners have a choice. They can sell or distribute cash or as often as the case they will distribute those shares to the limited partners or the investor. Subsequently the, the investor is responsible for what we think of as the last mile of the private equity experience. When shares are distributed to the investors, their behaviour in the markets is often quite unpredictable. These are midcap stocks underresearched and evidence shows within the first couple of trading days, distribute stocks lose 8 to 10 and there is a risk for loss. If you lose capital or returns during the private equity experience, you diminish the return to the plan. Lps like us when we get stock have a challenge. We have a quandary and we want to maximize the price for the share. We also want to sell them relatively quickly to invest into other investments within the plan. Thats staff distribution generally. We, in past, have had a distribution manager. In 1996, the plan hired pinkus to distribute the investments and in 1999, credit fleece brought pinkus and in january of 2004, spurs terminated credit fleece for the credit mandate and managing distributed stocks. Since then, the handling of or the distribution of the stock has been the Public Markets team. I will say, though, in 2004 stap2004staff focus was differed 20 of the overall plan was managed and 15 if equity and 5 in fixed income. I would characterize our effort and our results in selling distributed stock as fine. Our data is somewhat limited but weve been able to ascertain we captured 97 of value and held the stock for 59 to 60 days on average. Today is different and ill talk about that. And i would say that the volume of distributions weve had over the last couple of years have been fairly muted. We received 150 million in distributions, stock distributions and 30 million or so in the past year but today, its noted that the private equity portfolio is over 5 billion in value and 10 of that, 500 million is sitting in post ipo stock. Theres a potential pipeline here for distributing stocks. Intelligenteryconsently, its te these stocks. There is no best practices, so to speak. In my view, best practices are what is commensurate with stats capabilities and focus. As you know, staff focus, 100 of focus is on researching, monitoring, external managers and that is where our expertise and skills lies and thats where our focus is, not in single stock trading. To this end, i reached out to our consultants. I reached out to our prayer institutions to determine which firms do this type of work and what im talking about is taking distributers stock on a discretionary basis and managing them. It turns out there are very, very few firms that do this work. In january 209, staff send out and rfi to five firms on a discretionary basis and two which were brokerage firms. Given our focus on extendal managers, however, we eliminated two firms for consideration. Staff, and this was a joint effort by the Public Market and private markets team conducting onsite visits and we spoke to dozens of reference. A comparison is oblique and the reason is, if you think about it distribution managers dont require stock and they have to influence or control over the quality of the stock that they receive, the timing of the stock they receive. They represent a variety of clients, some which have very, very good high Venture Programmes and others dont. So co theres no benchmarks to compare the track records of distribution managers. However, we were able to conclude that over average of the four firms we di dissected y were able to value 101 and 103 of distribution value and that is ultimately our goal with the distributioning manager, to get close to or above our distribution priceses because if you recall, the general partners will mark their portfolios based on the value of distribution date and earn their Incentive Fee on that price. So we have, as close as we can get, the economic experience will be maintained. Put given the track records offered little in terms of differentiation, we focus on equal dayitqualitative factors,y focusing on the global or Resources Trading capabilities of the firms. Given that the nonu. S. Focus of our venture and private equity portfolio, we favorited firms with global resource. We focused on the firms that had a certain element of alignment, meaning the distribution businesses were important to the overall success of the firm. The link to consider fee structures that provided some incentive, a fee incentive for sales beyond distribution values and finally, we considered the tenure, the relative tenure of the team. With this as a backdrop, staff is recommending jp morgan asset managements, private Equity Distribution group. This group is the sole manager for jp morgans private equity business. In addition, they manage distribution mandates for 40 external clients. The group is lead by a gentleman of ed phrase over 12 years. The firm and leadership of the distribution management has been together for 12 years. They apply a largely quantitative process on 30 years of data that recognises the technical patterns of distributed stock after distributions based on their industries. They combine momentum and volatility measures into their distribution decision. 95 of the distributions that they get, they end up selling them, but they have the latitude to hold on to distributions should they believe that these distributed stock have value over the longterm. We benefit here for us with jp morgan as they have the benefits of trading through jp morgan asset managements Global Trading platform trading 20 to 30 million shares a day and has local trading centres in all major markets. To summarize, we talked about distribution management, what it is and talked about why spurs needs it. Spurs and staffs focus is on managing and reviewing, monitoring external managers, not trading stocks. Jp morgans virtues is that they have a tenured team and its a Critical Service for their private equity business. If i can add a couple of brief points. Kurt touched upon theres 500 million of any of the publically traded stock in the private equity portfolio and this is about to become more important than its ever been. Put six years ago, our private Equity Programme was about 2. 3 billion and 2. 2 and now its almost 5. 5 billion. So again, this is to give a scale of how important this will become and then lastly is that six years ago we had 1. 2 billion or so in unfunded exitments and now we have 3. 2 billion. So this is going to sustain itself in terms of importance now for quite some time. Well turn it over to the board for questions. Board questions, ill start with casiatos. On the fee auctions, walk us through a b and just how theyre incentivized and what the difference is. One thing ill acknowledge on fee, this is the standard process and were in negotiation of whats dated here. We wanted to be careful about saying anything before we concluded. All of the firms had similar options. A flat basis points which was proposed of 60 basis points. Its 60 basis points annually but if you think the average Holding Period is 59 days or so, you would say 60 basis points on whats hell for 59 days. So a base fee. Alternatively, we could pay them less on acidbase fee, in this case 25 basis points but 25 of the profits above the distribution price. So if they were to sell a stock at a value that exceeds what the g ps distribute it at, they would get 25 . Again, were negotiating something thats favorable relative to both. Thats all i have. Same question. If theres no further questions, ill make a comment. Is there a motion . Ill move to approve. Is there a second . Ill second. Ok, Public Comment . I would just like to say, like hedgefunds, private equity is High Risk Investment, very high cost investment, ver very. Let me give you the passive investments in stock funds and real estate. Vanguard with passive investment, 15. 4 . Vanguard, 60 40 balance index, tenyear returns, 20 . Vanguard s p 500 index, tenyear returns, 14. 23 . These are passive investments. You dont need any highrisk investments like hedgefunds, private equity and before you invest, read what they have to say. Its a High Risk Investment just like hedgefunds and you find out over the longterm, passive investment will outperform management investment. You can go back 100 years to identify that. In the last 30 years let me give you an example. The s p 500 consists of 500 large corporations. In the past 50 years, less than 1 of the Money Managers have outperformed the s p 500. And in the last 15 years, less than 8 have outperformed it. So passive investments, you can go back and backcheck and youll find out passive investments and were supposed to be longterm investments youll find passive investments will outperform management investments. Very low risk and very low cost. This is an example of something well tie to the strategic plan. Trading activity always is an issue expecting best execution. With Public Security managers, its rolled into the rate of return we see and this area is different. However, if staff i think mark was the one handling these trades, hit 97 , thats an a performance so how material is it to get 101, an a plus . This is to issue materialality, less than a Million Dollars. It would be great to have a Million Dollars and thats more than 20 times what some of the members annual salary is. However, our goal this year and basically end of year is to earn 1. 8 billion. So when you put that 1 billion over 1. 8, not that its not important but how significant is it for the things we should focus on trying to do better . The incremental money we might achieve by putting in an external and i appreciate staff telling us they did consider many alternatives, perhaps we will be able to justify that the money were saving by doing this, if you allow us to reinvest by hiring more personnel to do better investing, it will more than pay for itself. Thats a comment and thank you for finding this way to improve another project to increase value of the system. Public comments concluded and no further comments, those in favour say aye and opposed. That was a motion by helfon and seconded. That takes us to eight 8, private equity portfolio update. Board members, this is an update on the private Equity Programme in 2018, when it seems like a distant memory but the Public Markets struggled and were negative and our private Equity Programme was up 17. 6 . The tenyear return of 14 and inception to date return of 15. 9. Tonya and cambridge are here, as well as tory cove, are here to provide an update on our programme. Tanya . How do we get the presentation going . Thank you, bill and good afternoon, commissioners. Well try a slightly different setup for our performance to tate. This time were combining our strategy and performance overviews for each. To my left i have those with cambridge associates. They advice on portfolio strategy, portfolio construction and they support staff on new Investment Opportunities. I also have here representatives from tory cove. Tory performs different but very important function within our private quebe equity portfolio d collect data and validate that data and the data feeds into our all of our reporting and Risk Management positions across the whole portfolio. So with that set up, im going to opportunity back to private equity. 2018 was a good year for our private equity portfolio. The portfolio was up 17 , 700 million in gain for the portfolio. Deployed over 1. 3 billion across the various private Equity Strategies and we receive 800 million in distribution. A historical record for our portfolio. Since inception, our private Equity Programme has been a fantastic contributor to the overall planned returns. Our net return, net of all fees and expenses is 16 which is double the required rate of return for the plan. While its going to be challenging to heed this historical performance, we believe that our strategic changes to the portfolio, strategic shifts in the portfolio over the last couple of years position us well while going forward. In 2018, we finally reached our target allocation to private equity, 18 , and were above right now but the range is outlined by the board. We have been deploying roughly billions over the last five years and now, we are reaching the figur five, six year mark ae expect probably in the next year or two, our private Equity Programme will become selfsustaining and in addition to simply deploying capital over the last five years, there are several other things about our portfolio that differentiated from other private Equity Portfolios of other types of public pension plans. First of all, i would like to highlight our exposure to Venture Capital and growth, which translates into exposure into the technology sector. We also have quite Global Portfolio compared to other pension plans. It was a large exposure to asia and while the recent volatility in the market, longterm views to asia remain in tact and we believe going forward, our portfolio is positioned well. With that, ill turn it over to cambridge for comments about 2018 and the markets. Good afternoon, commissioners. Its great to be here. This is our fifth year now presenting to you the private equity annual review and were delighted and thrilled with the long relationship weve had with you and your investment staff. Kelly jen isn jensen is on youn and our San Francisco firm, as well as i am. We have a Team Dedicated of about 25 strong within cambridge helping you and your investment staff run the private equity, real assets allocation and some are in the audience today and youll hear from them when we go through some of the other revi reviews. To recaso to recap on page one t we would like to cover, one hasw is a private Equity Programme doing and the 2018 review and progress and three, the current market environment and what were doing in recommending in terms of positioning the portfolio and private equity portfolio to that context. So how is the programme doing . In short, youre doing well. Tanya mentioned performance and you performed well across all metrica and the private private Equity Programme is a strong contributor over the short and longterm. 201 was particularly strong with a 17 gain in private equity and this is compared in the markets which lead to an overall year of negative return in the public equity markets. The programme stands at 20 of planned assets slightly above. Strong to the outperformance and appreciation of your private Equity Programme. Distributions have been robust and we hit another year of record distributions for your private Equity Programme in 2018. This comes right after the record year that was this 2017. For 2018, almost 800 million in distributions and a bit better balanced across your buyout venture and growth Equity Managers in 2018 compared with the prior years. In terms of activity and what weve done in 2018 for new commitments, we made 1 point close to 1. 4 billion in commitments to 26 managers. 17 were existing relationships for your programs and they were fully reunderwritten for existing relationships, no automatic reups and we did pass on three and then nine new managers and i would say all opportunities including the existing ones were accesscontained. Accessconstrained. So the ability for us working together with staff and helping to develop that relationship and cultivating those relationships over the longterm allowed the retirement system to benefit from being able to either upsize your existing relationships, where we wanted to or access new relationships that were oversubscribed. The market environment in general still remains frothy. Market evaluations are at peaks and level evaluations at peaks, as well. So its a difficult environment to find attractive Investment Opportunities and access those Investment Opportunities. So within that context, weve been focusing, continuing to focus on manager selection, bottomup analysis is critical, as well as tilting the programme to areas of relative attractiveness and those include moving more towards Growth Capital, more towards sectorfocus funds, as well as developing more exposure to emerging markets like asia. The next page, why are we here . Youve probably seen the slide from us before. But the dispersion of returns in the green, all the way on the right there for private equity and Venture Capital, the dispersion of return is the widest in these classes. Were here compared to the Public Markets with the other charges. Classes. Were here because of that outside return that potential but also to suggest that manager selection is absolutely critical within the private equity classes. Between the average manager and here weve noticed the top as the final percent aisle. Ile its greater in terms of return for private equity and over 3100 bases points for Venture Capital. Compared with the major classic capitals, its 200 basis points between the average to the fifth percentile. So its very important and critical to get into the top two and aboveaverage managers in the outside returns. And so, it makes sense and its critical to spend the time and effort in cultivating the relationships that we want to develop and sometimes it takes years prior to the actual fundraise to do that but its worth that effort to d do so and to underwrite with rigorous due diligence, that and before bringing recommendations to the board. Theres a difference between absolutereturn hedgefunds . The absolute return would be a subset of the hedgefund. Equity would be a hedgefund that wouldnt be an absolute return. Great, thank you. Sure. A question . Yes. When you use the word frothy, how are you using it . That the markets are is it like a bubbly stage . The records amount of dry pat are out there. Youll see in the next slide, fundraising remains very robust across the private equity class and so a lot of stiff competition out there chasing deals. So the entry valuations for the market are at peak levels now. So ten times plus the multiple and at peak levels, leverages readily, freely available. So leverage multiples are near peak and so the suffering from the difficulty in not only lps and investors accessing the gps but also the gps accessing attractive Investment Opportunities and outbidding each other and bidding up the market. So youre kind of using it as saying that theres so much activity, its frothy . And its heated, to we need to pick our spots here. Ok. So let me flip to page 4. And so in light of this market environment, where have we been focusing our efforts . The first is in sector focus funds. On page 4, youll see why. We have analyzed sectorfocus funds compared to the general counterparts and we see that historically, sectorfocus funds have outperformed the their generalist counterparts. The main reason for this is privatinprivate equity has matud its important to have the deepdetectivedeepsector knowle operations and drive growth for portfolio companies. So theres no lowhanging fruit and we find the sector specialists are better able to drive all of this with their Deeper Networks and sourcing capabilities and domain expertise. What we dont show on this slide, but it was also a result of the analysis is that not only are the returns better for sectorfocus funds compared with the generalist counterparts, but they were to have lower loss ratios against them, too, and that being the new, you know, prep better knowledge of the sectors getting in and out of the investments and timing better than the generalist counter parts. So we have been focusing for the last five years now on adding more or in terms of new managers or increasing your computer to sectorfocus funds. On page 5, another rationale for doing so, this slide here shows that for private equityrun companies, that compared to their public counterparts, they are run better. Their Revenue Growth is better, the operating margins are stronger and those are the top right and bottom two tables or two chatter charts there. Even though the Purchase Price multiples may be high today, that compared with their public counterparts, theyre in line or slightly lower and the only thing of note is that the leverage level is higher, the two times versus 2. 7 times. So operatorlead private equity is driving these better metrics or Underlying Companies and we feel that this operatorlead private equity is best done by sectorrer specialist. The second area focus in recent years has been adding to Growth Capital or Growth Equity allocation or exposure. Five years ago, Growth Capital was about 10 of your overall private Equity Programme. At the end of 2018, that rose to 26 . So its been a conscious effort to add more and why. The riskreturn profile we find attractive within Growth Equity and if you can see the chart on the top are the returns and then the bottom table shows the loss and impairment ratios compared with the Venture Capital and buyout managers and index. Youll see the returns are slightly above buyouts potentially, but the loss and impairment ratios for Growth Equity are very similar to the buyouts. So its in between venture and buyout, but the loss and impairment ratio is more attractive. And you had gotten into some of the investments early on. Ta and summit pioneered the space and we continued to add our exposure here. Its not easy to find in a lot of these grow out of the space or move into larger fund sizes but we are continuing to add to exposure and have done so in the last five years. And the third area that we have positioned the portfolio in the last five years is moving more into asia. Five years ago, it was less than 5 of your private Equity Programme and today its at the end of 2018, it was 28 . We have a comparison of u. S. Private equity against asia pacific against china pup can see asia pacific has been about the same in terms of the longterm returns and outperformance. Of the commitments that the retirement system has made to asia in the last five years, over 50 has been dedicated to china and so we have already started to see the benefits o playing out in the numbers and the asia numbers have been pulling up the overall performance of the private equity portfolio. The next slide ill go quickly. We have 4. 9 billion nav, 0 of planne20 ofassets in private ed youve committed to 379 funds and that is approximately to 120 active managers in your portfolio today. We ti continue and have made a conscious effort to concentrate the portfolio. So of the 120 manager relationships, really about 50 are ongoing and so we continue to work on making bigger bets with the existing portfolio or when we add to the programme. But having a more concentrated portfolio. Page 9, another highlight on performance. We compare since inception ir, 16 against your benchmark in the pink there. So the 75 ruffles and plus the 300 basis points premium and since inception, the programme has exceeded the private equity custom benchmark by over 530 basis points, including the 330 basis point premium added to the public equities. On page 10, a showing of the strong performance, short and longterm, 76 net for the year 2018 and the blue is the overall plan asset return and so, providing a strong contribution to the overall plan returns in the orange there, you can see for the private equity returns. On page 11, we have a snapshot of your portfolio today or as of december 2018 and its wellbalanced across venture Growth Capital and buyout now. The change from 2017 to 2018 is that venture and Growth Capital went up and buyouts tea championshippedeclined interms. Buyouts is less than a third and its mainly viewed to a disproportional nav appreciation of venture and growth fal. They had 21 returns for the year and strong distributions coming out of buyouts. So of the 800 million in distributions we had in 2018, close to half of that was derived from the buyout allocation. So the pie on the right is including what is dry powder or unfunded for your programme and as that capital continues to be called down, we would foresee a more balancing out of the buyout venture and Growth Capital splits. On page 12, i wanted to show you your industry exposure, as well as geographic exposure and how its changed for the private Equity Programme. You can see here on the left that it and Communication Services in the blue, for the retirement system is significantly overweight compared with our cambridge benchmark, all of the private funds we track. Thats been an intentional overweight for the programme. There are many reason for this. We have, you know, a trek Venture Programme and most of that is a in a large Venture Programme and most focused on tech. The techfocused buyouts that we have increased exposure to have driven that overweight. High growth and mostly software and company and stores have benefited from having the overweight already and it served you well. Technology of all of the sectors has been a consistent outperformer and so, that says something, that we would continue to recommend. We have modest juniorrate underd those are areas of focus and we added consumer managers to your buyout allocation or roster in 2018 and then currently, were working for 2019, probably, on looking at two additionals focusing on industrials. We discussed the overweight to asia and why thats shown on the right, as well, in terms of geographic exposure. Do we know what our return contribution is for the different sectors . It versus some of the other i since we have such a tilt . We can pull that but it has been outperformer and served you well. I would curious to know what the numbers are for the different sectors. No rush. Here on the next several pages, i just wanted to go through in more detail on each one of the subclasses. So for buyouts on page 13, the Buyout Programme has been by far the largest driver for overall private Equity Programmes since inception, strong returns overall, longterm distributions were solid and hit a peak for 2018 and that was 357 million just out of your buyout, buyout manager roster. We continue to focus on sectorfocus funds and we added two focus managers last year. We continue to focus on concentrating and consolidating the portfolio and one of the areas has been to consolidate more of the large megacap manager lineup that you had and selectively choosing to reup with a certain number of those. And we are continuing to look at europe, and that has been one area that we have not done as much in, but have had a few in the last five years. There were opportunities that were looked at and then asia, we are, i think, good in terms of the current exposure and lineup, but if we were to add something, it would probably be in an area where we dont have exposure to or as much exposure to the japanese small midcap buyout space. Within emerging markets, in addition to abl asia, we did mae progress if committing to a brazilian manager last year focused on latin america and so, that we think will be a great add. And then on the event tou ventu, venture had a very, very strong year last year. The programme itself, spurs delivered 23 in the one year ending 2018, distributions from venture also were strong, 179 million last year and thats nearly two times the amount that you got from your venture managers the year prior. Valuations, especially on the light stage, remain very high. So we continue to recommend focusing and enhancing the early stage portfolio for your Venture Programme. The exits have been strong in 2018, but we also see that its really a good sign in the first half of 2019, a very healthy ipo market and a good handful of even venturebacked companies that are greater than 10 billion in valuation have gone out and i think thats a good sign and likely, you know, hopefully to see similar exit activity for your Venture Programme this year. In asia, also, we focus on earlystage opportunity and in europe, we are continuing to look, vetting many, continuing to look for the right one and the one that we can access. With that, let me turn it over to kelly to hit on some of the Growth Capital high height highd other years. Thanks, anta. Allocations to Growth Capital was underweight as of 2018. Spurs intentionally leaned into the face in 201 2018 and the programme committed 320 across five conversion managers and three were to u. S. Groups and one reup and one new strategy and that was a manager that spurs invested with through the managers buyout family. And the third level equity was a new relationship for spurs they were able to really, you know, build a relationship with, just by the manager being highly active. In terms of size, all three of the groups raised rather small funds and poleris at the low end, below 200 million, and the others below 500 million which we believe positioned them well to invest in the lower end of the markets we find less efficient and competitive today. The remaining two growth commitments were to asia management, so both of which spurs has invested with before. Turning to page 16, special situations investments represent a small portion of the pe portfolio at roughly 4. 5 of nav. As of 2018, that was not a transfer to the private portfolio. That transfer included 17 active fund taz are more creditoriented and thats more appropriate for that part of the portfolio. And this hasnt been a major area in recent years for the Equity Programme but we think that there could be opportunities to add exposure, particularly on the distress for control side and especially in the event of a Market Correction or a prolonged downturn. Emerging markets, i wont spend much time here as anita covered many points in the presentation, but ill highlight there was a lot of