Order. Will everyone please rise and join us for the pledge of allegiance. pledge of allegiance roll call please. Brian stansbury. Present. Paskinjordan will not be here today. Leona bridges, present. Al casciato. Malia cohen. Next item please. Closed session. Do we need to call for Public Comment before going into closed session. Is there any Public Comment . Seeing none, we will close Public Comment a is there were just coming out of closed session. Is there a motion not to disclose . Is there a second . Ill second it. Take a vote on this . Do we take it without objection . Great. Item four general Public Comment. Before starting general Public Comment, i would like to make a quick announcement. I defer to commissioner makras. In the loss of mayor edwin lee. Thank you. Public comment. Are there any members of the public that want to address the commission . Im sorry, i have the speaker cards. I didnt realize the green things in front of me. Go ahead and start and then ill call everyone i have here. My name is john stenson, i would like to give you all an update on the 1 Million Charity with a Top Hedge Fund manager. If anyone wants to take any side bets, 1000 to one, well take them. Anyhow, over a 10 year period, the s p will out perform index will out perform Top Hedge Fund manager. The bets start january the 5th, 2008. As you all know, in 2008, that was the largest stock market drop in stock market history. As of this day, with a little over two weeks ago, the hedge funds are up 25 and the ban guard investments up 90 . If you invested 1 million into five hedge funds 10 years ago, you would have gain of about 250 million. If you have 250 million return from hedge funds, how much you would pay in management and performance fees. At the same time, s p 500 index is 900 million. Ask how much Management Fees you would pay on 900 million. 250 million Management Fee would be more than the 900 million. It proves that passive investment usually wins. Anyhow, Large Pension Funds like state of new jersey, new york city, all invested in hedge funds 30 seconds. Years ago. All the Pension Funds are getting out of hedge funds. Theyre getting out, were getting in. I think you should contact these three Pension Funds and find out why theyre getting out of the hedge funds. And the main reason they got into them they got into them for all the same reasons time. Thank you. You have reached your time. Okay. Thank you. Thank you so much. Up next we have jed hosman. Thank you president stansbury and commissioner. I guess i first want to express my condolences for the loss of the mayor, whom i imagine all of you knew personally and certainly worked with. I really just came today, we had originally expected the rescheduled fossil fuel divestment vote. I just came today to see if we didnt manage to get the message out to anyone about the rescheduling. That has been challenging. And i really just wanted to highlight and really circumstances that i wish were different. A post on the medium blogging platform that mayor edwin lee published on december 11th, just a couple days ago, called divesting from fossil fuels for a stronger and cleaner future. I know staff received that and hopefully forwarded it all to you. I hope youll read it and take the message to heart. Thank you very much. We look forward to january 24th. Thank you. Up next, curtis swoop. Good afternoon commissioners. Just want to echo what jed said. I didnt always agree with the mayor but on that side he was right and i hope you listen to that. Last time i made a big moral argument, im just going to read headlines from articles, i have the links if you want them. These are from earlier this year. More than 40 catholic institutions will make the largest ever fossil fuel based divestment. From the gao, the Government Accountability office, Climate Change linked to flooding, wildfires are going to increase the costs in the coming decades, possibly as much as 35 billion a year by 2050. The worlds biggest fund are ditching oil and gas. The Norwegian Oil and gas, the worlds biggest has told the government to dump shares in oil. Just last week i think a few days ago insurance giant access dumps in pipelines. John hopkins to stop investing over Climate Change concerns. Moodys warns to address it or face downwards from the managing director, we want people to realize if youre exposed were going to know that and ask questions what youre doing to mitigate it. Economists, and what the mayor said. You know, i just hope you guys do the right thing. This is war like i mentioned last time. It may not have all the traditional visuals of war, but this is war. Look at the wildfire. I hope you guys do the right thing. Do it for the mayor. Up next, ellen zal. Good afternoon. Im here to represent approximately 16,000 Public Sector employees in san francisco. We are vested in our retirement. I have asked administrative staff to give you each one a copy of what i have gathered from Public Information about our retirement that our retirement is at the edge of i wouldnt say bankruptcy but its at risk, that we dont even know as Public Employees and disadvantage for us not to have options. Im here to ask you to put it in the agenda for the next meeting because i was told if our item is not in the public agenda, it will not be counted. So im asking you kindly to put it in the public agenda for you to address our money, our money that is 100 out of our own pocket. 457b, that our money is at risk because of Miss Management from our current agents. We have three questions for you to help us. Number one, our city and county employees have choices for Health Benefits choices, dental choices, but our pension has no choices. And this is not 30 seconds. This is not fair for Public Sector employees that we divest the money and overcharged for maintenance fee. We had more than 2. 3 billion in the account but still we charge a monthly fee by our current agency. And number two, were here to ask you to refund our money that you overcharged, whoever overcharged our Public Sector. We had 16,000 members time. Thank you. Im going to leave some of these for anybody who is in 457b. Thank you. Up next i have jennifer jackson. Good afternoon. Im a city and county employee, and i want to say i support divestment. I know that will be coming up in january. And more generally wanted to provide Public Comment with environmental and social screens on all kinds of investments, that the pension investment and deferred compensation plan. So a recent study was published in 2015 that is an analysis of more than 2200 academic papers on social screens, environmental screens and corporate performance. I would like to submit for the record, this study. It shows a positive correlation when you have these screens. So theres a lot of missinformation that says theyre not Good Investments and that is absolutely untrue and i think the study shows very well its not true. I submit that for your record. Thank you. Thank you very much. Up next, paul grit. Ive been a City Employee for almost seven years and im here to talk about the deferred compensation plan. For the first several years i was here, i chose not to par take in this, i felt there werent any good options that showed social responsible investing or impact investing, whatever you may want to describe it as. This only hurt my own retirement plan. Recently i started putting it in the savings account. I was told there was a savings option out of the core options, once i exceeded 5,000 im looking into direct vesting. There are a lot of fees that are prohibited and you still have to keep some in the savings core as im doing. Im here to ask you to please offer more options with esg. There is only one currently available and i believe its called the large cap social equity portfolio. I was unable to find out what the criterias are that make it social. Theres over 400 companies in that fund. Out of all the ones i recognized, with few exceptions, there was none that i would buy their products and invest in them in any way, shape or form. I dont know why i would want to put my money in there now. Regardless of what i feel about that particular social equity, i wanted to let you know compared to the large cap core s p 500 index fund, it outperformed, like jennifer just said. The five year outperformed the s p 500. Please add more options to invest our money. Thank you. Thank you. Up next, i have brian rays. Good afternoon. My name is brian rais. Im a City Employee and i want to encourage the board not just to invest in fossil fuel because its your fiduciary, but its not what we believe in. The transportation building and waste sectors. We have successfully proven we coupled Economic Growth with fossil fuels emissions by reducing Greenhouse Gas emissions 28 while growing the gdp 78 since 1990. I would like the board to align with climate aspirations as a city and mayor edwin lee and our environmental chapter codes. Thank you. John ferland. You want to wait and see if there are other people that want to address the commission . Are there any other members of the public that would like to address the commission . Good afternoon. Representing retired employee of the city and county of san francisco. I just want to ask, again, and i believe commissioner makras has asked for the information on whats going to happen, or is there any progress on the possibility of having our own building. Again, i started working for the retirement system in september 1973. We were discussing it then. Its been discussed since and now its getting disgusting because we havent made progress and im already retired. So i bring that up again. Also, we had the Holiday Party today and everybody wants you to know we bring you holiday greetings and keep up the hard work. Well talk about good work, bad work, but its the hard work that you do. And we do appreciate that. My last comment, im amused and im sorry, but i noticed that norm is not here today and its taking two employees to replace him. laughter i know theyre wonderful and going to do a great job but it is curious when you have someone who sits and does the work norm does and its going to take two to replace him even temporarily. Thank you. There will be other comments later. Any other members of the public that would like to address the commission that havent submitted a card. Seeing none, mr. Ferland, youre the last one. Per my practice, i sent you an email yesterday regarding the february 13th meeting. Im not going to go through too much detail, because of the tragic events of yesterday, you people probably didnt read it. I would just request when you have some time you do. The extraordinary continued growth in debt globally and extraordinary actions of global center. To mitigate the risk of a severe bear market. Thats worn out by the napc study itself. The the chart is on page 33 34. The table on page 26 is simply not sufficient what you have done. You have to consider in addition other innovative approaches that public Pension Funds in general have been reluctant to think about. 30 seconds. I just want to make a brief comment about this fellow. He usually brings up good points about the hedge funds. You should regarding the buffet, buffet made that bet when the Government Bond yield was 5. 5 . Its 2. 3 right now. You dont have the luxury of having a 60 40 portfolio. You just dont. The world is different. Time. The ridgemont investment. That is being covered, it talks about 50 million closing and it talks about Natural Resource investment. Question is, if that, would that be known as a Hedge Fund Investment or not because the Natural Resource could be water, it could be forests, i think we can improve the description if we know what it is. For the future. Do we know what type of investment it is . Are we able to share that . Its not a hedge fund. But if you drive down is it a water investment, is it a forest investment, is it a mineral investment . I think we could describe them better than this very broadway of categoryizing it. Well try to do better next time. Do we know what type of investment it was, so we can share it with the public verbally . I think we need to study what the board in coming out of closed session voted to direct staff as far as what we can disclose and not disclose. But well get back to you. We voted not to disclose, this is not an issue of disclosing, this is definition of an investment that im looking to be more defined than just Natural Resources, because there is a big difference between mining and water and we are public body here and i think the description should allow people to fully understand what the investment is. Is this something that you would like to talk about offline in terms of the boards intent to close session, or what is the im happy to do that. What is the best way forward . Im happy to do that. Second, on page 9, on the tpg minutes, there were some questions that commissioner, or supervisor cohon asked. A month has passed. Im asking staff if they provided those answers within the 30day period between the meeting and now. Im curious to see if the answers were forth coming in a timely fashion. I did not look up the information. I do know that we have one manager who has an investment in one publicly traded security. There could be others in same security, its the most note worthy name in the cannabis space, tw pharmaceuticals. The other publicly traded companies in the space tend to be pretty small, frankly, i would have to look, and i did not. Thats an easy thing to catch. I will move adoption of the minutes as submitted. On the table from commissioner. Public comment. Excuse me . Right there on page 9, my first name is misspelled, and i believe john s. T. E. M. S. O. N. . So its misspelled as well. Thats it, just typos. Thank you. Are there any other members of the public that would like to address the commission on the minutes . Seeing none, can we take this item without objection . Great. Item passes. Ok. Madame secretary, next item . Next item is item 6, the consent calendar. I will call for a Public Comment. Any members of the public that would like to address the commission on the consent calendar . Seeing none, we close Public Comment. Second . Ok, discussion . Can we take this item without objection . Great, item passes. Next item, please. These two items are going to be taken off of calendar, item 7 and item 8. And brought forward at a future board meeting, most likely january 10th. Great, continued to date to be determined, likely january, that takes us to what . Item 9 . The Investment Committee report. This is a discussion item. Item 9 . Little over two hours, we had speakers with a lot of experience in the fossil area. I meant to check with our board secretary, to see if the audio was available. That meeting was not videotaped, but a great power point presentation might give those unable to come, to get a chance to catch up on what was done at the meeting. Part of it lays a foundation what were going to do, not only in january, but other work being done. For those who may not recall, but, at our retreat, the board decided to rule the esg committee, not diswanted, but it was disbanded, but it was made part of the committee. It was an excellent meeting, mr. Goldstein and broouk. Okay, well call for Public Comment . Anyone from the public like to address the commission on this item. I have one speaker card from david page. Hi, everyone, david page here from local 21, Climate Justice group retired dph. First of all, i wanted to say my wife and i wanted to share our condolences about the passing of mayor lee. I only met the man one time, but if i had known about his monthly efforts to go out into the street and pick up the trash, i would have commended him for that. Thats exactly the kind of thing that, to me, is part of something that is praise worthy, not just doing the big stuff and looking at the big picture, but also doing the nitty gritty things that people dont want to get their hands involved in. I also wanted to mention that yesterday, the world bank announced theyre going to stop their investing in upstream oil and gas and eng announced theyre going to be divesting from coal. And yesterday, Margaret Brown got elected to kell pers, so there is a complicated picture, things developing all the time. Im hoping you guys are going to move in the direction of investing in fossil fuels and hopefully we can move forward with that next month. Thank you, mr. Page. Any other members of the public that would like to address the commission on this item . Seeing none, well close Public Comment. Thank you for your report. Next item, please. Item 10, report on the retirement fund. Very good, thank you. So board members, performance continues to be excellent. We made almost 14 over the past year. On a relative basis and by the way in terms of dollars that almost 3 billion from last year. And performance, on a relative basis is in 14th percentile in the past year and 8th and 5th over the last three and five years. Going to ask alan to walk through the report and the npc has a lot of good Economic Data in the report as well. Ok. We can start with the cover page. You have before you the quarterly performance report for period ending 930, including the plans first fiscal year quarter. I want to remind commissioners this i