Regularly retirement meeting thank you for all attending and the staff none sunshine said thank you. I wanted to say thank you on behalf of the board for all our work sometimes that is a thank less job mr. Clerk if we could please roll call commissioner cohen commissioner meiberger commissioner bridges is on her way droilg brisbane commissioner driscoll commissioner paskinjordan pr commissioner stansbury is quorum is presented. Thank you very much please call the next item thank you ladies and gentlemen, Public Comment is open at this time. Thank you, president im Patrick Bradshaw regarding the potential investment in the loan pool it was good warning the retirements system is asked to purchase. 26. Million no others secondary market willing to purchase it unfortunately, this simultaneously suggests the retirement system maybe under the quote greater pool theory an investment pool investment using the assumption theyll be able to phil fill it later to and then greater pool this is packaged not because you believe that is worst the price but rather you may believe all be able to sell to so o to someone else down the road curtail the investments conducting Due Diligence until you vote on the thresholds issue commissioner stansbury that is peoples no. 1 precedent to invest in another city agency which is akin to selfa deal i again distributed a handout to the commissioners showing the city be routinely emailed did agenda to interested persons list and at least 7 board and commissioners have background and explanatory documents on and on online adjacent to the online postings it long past time for the retirement board to begin providing the same level of transparency and other whereas the Retirement Systems beneficiaries and planned members that the city commissions provide to our constituents we need to move on this and do it quickly not rocket science. Is it true, mr. Shaw like to call of john, i have a speaker card for him. Thank you. I directed this handout im going to read quickly glorious marks had hair wake up up call in august they corrected and i have no idea when the bail marketed will begin to say the same thing it is time to try to prepare for this implementing the hedge fund i sited a couple of articles about Pension Funds that are looking to derisk you certainly not lagging in that respect youre trying to derisk there are paying a longer time ill moving down to the middle the page with the florida to remain staff id like to make the suggestion you do the same it you pay your staff an Incentive Fee was not to remain the staff but incentivizes them and direct them i do xhaerth thooig to show your paying two base points for the staff to manage one billion dollars of asset youll pay the hedge funds would be youll be paying them 2 hundred times as much okay commissioner driscoll might quibble with that is fine of one no 5 youll pay hedge funds two them that youre paying our staff and paying this is the hedge fund to cover 5 percent the assets you have to figure out who what to do with the 95 percent especially the public entities that has overdone its benchmarks by. Small platinum to paying our staff Incentive Fee subsidies and paying them well and highest is the single best a thing to do as a board to deliver alpha if a the ceo mentioned the end of july my guess after august it is probably less than that i wouldnt look upon paying the extra salaries to staff as an expense the way the critics saw by the best investment for the retirees thank you thank you very much. Next speaker. Is ms. Kay walker thank you and good afternoon, everyone this is a about the Pension Fund Investments ill talked with the Mayors Office of housing and listen to the tape review of trying to figure out what the investment was i dont know how far youve gotten with that to me it sounds okay. It is on market rate maybe the liability it questionable but this is my individual investment i want to see what that is and the 9. 5 it sounds like a guaranteed fueled i would perp i dont know that much about what all the others investments yield if it is even a little bit above average this is a point in the favor since wall street is going like this also it is only market rate and i think that is very important based on the appreciation ratio right now i like this is going to be i would put not contract not continued nonetheless feasibility under certain circumstances and as a member of this system and a city retired city worker id like to see in the contract i know that mayor president ial hes not been reliable ive started with prop c in that context where the police have the money the 26 point 5 thousand what is he going to do with the money gardened from our investment matt haney would it be going towards below grade housing not to do Something Else not to raise the amount to market rate and that would go into the contract if i understand this loan correctly or investment correctly in that the investigating of investing of this well be reefs to the mayor to invest he put in the newspapers it is for below grade housing i dont understand the secondary matthews thing. This is a very contained investment i wish Maria Benjamin shes been dealing with that for 0 long time and could answer the questions in a different manner. Next speaker thank you very much commissioner cohen and commissioners i wanted to take the opportunity to deliver the good news that lets see last wednesday one week ago sb 185 passes in the state assembly and josh is expected to sign it arrest wisconsin we saw on august in the chronicle and the laments discussing the study that shows that al has lost over 05 billion with a b over the previous calendar year and long term investors will respond to one year just pointing out the direction those investments have happened the Grant Foundation and sf at a time glood glad to see thatplegic is not here given you had a closed session i wanted to speak brief to items 10 and 11 for tobacco you guys moved to level 3 in 1998 and the language listed it quote due to the existing litigation prototype legislation and restrictions relating to the tobacco industry, etc. In addition to 9 into 32 and 350 will likely pass on friday 50 percent less petroleum by 2030 this isnt the kind of governmental action that will effect the markets that moves you to level 3 for tobacco today, youll look at in june of 2016 and move 3 months latter in the language the retirement board directed staff to engage in constructive dialogue during the level 2. After 5 months it was determined that everyone who is leaving all right. Left youll move ahead with the action you voted this year to activate the carbon 2 hundred and its been six months now the only precedent from level 2 to 3 is 5 months im not suggesting the amount of investment is similar to the fossil fuel but their 3 percent or less of our portfolio and after 6 months weve seen it is barely begun sf San Francisco has a self consultant of timeline but the Movement Board is not only fluid but. 3 seconds. Very, very slow. Weve discussed the carbon with the committee but it is the boards responsibility not the purview of the s g committee to implement the social policy of the, if you will, full board we have heard in commissioner stansbury and commissioner meiberger we need to do level 2 well, weve heard this but not happening there appears no drive to make this happen and the affordability for it is not happening we urge strong action now. Any Public Comment on this item . At this point please approach the podium. My name is my name is tie ive been emails the boarding Board Members for 6 months with no response and right now i think the moment is critical because im talking about the fair expedition it funds performance and extends the reason why it is critical as you may know the market it very well actually, the market is up 3 hundred and 90 points and today plus 2 hundred and it went down to mrunls 250 it is very, very critical it is not only the correction okay even at the current investment your funds you know it will not do well perp will im forced to put 55 percent of my familys investment into the stable vail fund as you may know the Stable Value Fund the fund is around 1 percent but the expense is point that basis point that is really, really high i could go online on the internet and get a better rate all the other few minutes i copied those are the website and the expense it rankles from 38 basis point to 95 base points for Real Estate Investments okay. This is really, really high and then we dont mind if we pay high expenses if we can get the performance but the performance is not there the fund from the consultants is not doing well, all the mid cap and their below market perform from 2015 the equity in the expense ratios are over 40 basis point and im really concerned because the market right now is below dow jones 17 thousand it is going up both that and today it is not just the Market Correction the market is going down it is going to be possible a bear market means it could 0 go to 10 thousand and the goal maker from prudentially is not protecting us all of them all they do as you grow older they recommend you put more money into the bond funds by the way, it is the bear funds is not performing well, ive said many times why cant we have other choices like short time or medium term bonds we have no choices but i have written to you many, many times but dont get no response im talking to a wall okay go when will you respond to me and lastly the hedge funds the hedge fund if youre clever enough youll choosing choose the best hedge fund and according to the studies of mit most of the hedge funds theyre very transparent the reporting is very flimsy. 30 seconds and their performance is terrible they only report the performance before they disbuild the profits so you got to be extremely careful with the reporting okay and finally i feel for the other Union Members thats their hard earned money i myself put into stable funds but people dont have the times or effort. Time. Thank you very much. Thank you for your comments any other members of the public members of the public who wish to speak i want to make a announcements the board of supervisors made a hearing request for the retirement board staff to make a report to the board of supervisors on our plan for fossil fuel deinvested in terms of the legislative process our staff will be working with the board of supervisors clerk of the board to get it this item heard most likely in thirty days and be noticed but i want you all to know that. So seeing there are no other members of the public that like to comment in general Public Comment at this point Public Comment is closed. And mr. Clerk can you call the north america. The next item is closed session an action item. Were going to go into closed session before we do that we have to take Public Comment on to whether or not we should go into closed session we want to open up for Public Comment at this point. Thank you commissioner cohen at the end of my testimony id like to categorical assurance from either the president or the Vice President it the missouri a a investment will not be discussed. It will not be discussed in the collection. As for the hedge fund the t l buildings it is the only way to protect whats taking showing so long and holding up, up the hedge funds the math declined to invest in the hedge funds during the Performance Review thank goodness for sfgovtv closed xaing in the video it was recorded on tape a lengthy heated argument for the concerning composition and the hedge funds review panel apparently increased from 5 numbers including the general consultants which the board i believe directed last january shouldnt be part of the panel it was stated quote vote for us the consultants that weve hired well fire the consultants and replace them unquote to which we have a 6 person panel to review this we already have an offer and acceptance we believe is highly confused ever qualified to participate we are in the process of a contract but if we have to waits until the september 12th meeting to find out if in the case we have the process over by months but i wouldnt be happy about the unlateral changes to composition of the 5 member review panel remarkably in response to a request ive placed it was provided written records in january from which included the documents from commissioner meiberger regarding the sf hedge Funds Investment which mr. 30 seconds. The gentleman never respond to at all question cant find another board in the city in which a commissioner is place a formal written request to the executive director and you shouldnt get that Performance Review. Time. Thank you. Any other members of the public that want to speak at this time. I just wanted to know from the hearing on following fuel investment is going to be public. Of course and will it be announced here. I suppose it can. Or in the before i begin. We can put to on the website so you can check the website in case of the meeting. Any other members of the public that wish to speak at this time so were going to go into closed session ladies and gentlemen, Public Comment is closed. Excuse me. inaudible . Im sorry i dont, im sorry i dont public that came and waited i apologize for having you wait for so mr. E many hours it was important work we were taking care of now im going to entertain a vote from f this body or id like to entertain a motion not to disclose what was discussed in closed session. Is there a motion . So moved. Public comment. Before the vote. Yes. Thank you for the reminder i want to take Public Comment on the motion not to disclose the closed session thank you very much Public Comment is closed. And lets take a roll call vote on the motion. Commissioner bridges commissioner cohen commissioner driscoll commissioner makras commissioner meiberger commissioner paskinjordan commissioner stansbury that item passes. Thank you very much mr. Clerk, call the next item i think it is item 5 arrest an action approval of the minutes for august meeting. May i have it a motion to accept those minutes. Well take Public Comment hold open. I will we can take Public Comment now since we made mr. Patrick wait. Move on the as with the retirement board minutes it doesnt accurately summarize the actual conversation held in july the executive secretary went too far in omitting from the august 12th minutes a number of things that occurred during the report in august clearly recorded on the sfgovtv closed expanding a heated argument regarding the hedge funds review panel apparently increased in 5 to 6 members including e right direction s general consultant that board directed last january with not be part of the panel mr. Her stayed quote if you hired a consultant if they well fire the consultant and replace them unquote unquote closed expanding recorded the conversation that there would be a consultant who was not e right direction s general consultant but the process appeared quite inflates and not do you want and continue to do you want them for the october meeting and direct the gentleman to update the minutes personality information that should be adequately summarized not verbatim minutes but you need to enclose a significant issue the offer will i summarized minutes need to stop key portions of key conversations have been omitted when they should do adequately smierdz and not completely eliminated from the minutes the conversation never occurred on video we have a duty to accurately report what triefrz in p. S. Meetings not verbatim but it should be exclusive. Any other members of the public that want to speak and add Public Comment to item 5 . All right. Im to have a motion to accept those minutes. Ill move adoption of the minutes. A change on item number 3 to the flying in bold id like those that be regular print like all the traditional are you think that the body wants to move towards highlighting certain comments in minutes that that is something that we discuss and vote on rather than letting it happen at will. Commissioner makras i believe the language our pointing out to the summary of Public Comment that was submitted by a member of the public so we want to reflect that summon the way it was submitted by the member of the public maybe this particular section is summarizing general Public Comment there are the summon by the court skeet of his comment and the photograph of written hundred and 50 written or less examine that includes as he submits it. Ill ask anybody that can was it tents e sent in it was it sent in i accept. F it was underlined and submitted in his written summation. So do you want to. Keep the minutes. Is there a second approval of the minutes. All right. All in favor, say i. I. Opposed . No all right. This motion passes unanimously the minutes are accepted. Mr. Clerk. Item 6 approval of the minutes july 8th retirement Board Meeting. All right. Lets take Public Comment on item 6 please. Id like to thank this body for going back to the draurgd in rising those minutes im still of the opinion they dont accurately reflect what commissioner stansbury said was it would be unprecedented make this investment in another City Department in the minutes still dont clearly say what commissioner stansbury said was it would be unprecedented like horse shoes it is a quote but still not accurate. Well, are there any other members of the public that want to speak Public Comment is closed. Commissioner stansbury. Im satisfied with the changes that are made to the minutes it is important the minutes are not a rip indicate verbatim but it was in the spirit of what was said the minutes accomplish