City and County of San Francisco Employees Retirement System RETIREMENT BOARD MEETING MINUTES

Transcription

1 City and County of San Francisco Employees Retirement System RETIREMENT BOARD MEETING MINUTES Wednesday, 1145 Market Street, 6 th Floor San Francisco, CA :00 p.m. MISSION STATEMENT San Francisco City and County Employees Retirement System is Dedicated to Securing, Protecting and Prudently Investing the Pension Trust Assets, Administering Mandated Benefit Programs, and Providing Promised Benefits. RETIREMENT BOARD MEMBERS President Malia Cohen Vice President Herb Meiberger, CFA Commissioners Leona Bridges Joseph Driscoll Victor Makras Wendy Paskin-Jordan Brian Stansbury Jay Huish Executive Director

2 Page 2 of 16 DISABILITY ACCESS The San Francisco Employees' Retirement System is wheelchair accessible. Accessible seating is available for persons with disabilities. To obtain a disability-related modification or accommodation, including large print agendas, American Sign Language interpreters, FM sound amplification system and auxiliary aids or services, please contact Norman Nickens at (415) at least two (2) business days before the meeting. There is accessible parking in the vicinity of 1145 Market Street at Civic Center Plaza. Accessible MUNI lines are available at the corner of Market Street and 8 th Street. The closest accessible MUNI /BART station is Civic Center Station. Materials accompanying the agenda are available for public inspection and copying at SFERS, 1145 Market Street, 7th Floor. For additional information, please contact Norman Nickens, Executive Assistant, at (415) In order to assist the City s efforts to accommodate persons with severe allergies, environmental illness, multiple chemical sensitivity or related disabilities, attendees at public meetings are reminded that other attendees may be sensitive to various chemical based products. Please help the City to accommodate these individuals. The ringing of and use of cell phones, pagers and similar sound-producing electronic devices are prohibited at this meeting. Please be advised that the Chair may order the removal from the meeting room of any person(s) responsible for the ringing or use of a cell phone, pager, or other similar sound-producing electronic devices. Know Your Rights Under the Sunshine Ordinance (Chapter 67 of the San Francisco Administrative Code) Government's duty is to serve the public, reaching its decisions in full view of the public. Commissions, boards, councils and other agencies of the City and County exist to conduct the people's business. This ordinance assures that deliberations are conducted before the people and that City operations are open to the people's review. FOR MORE INFORMATION ON YOUR RIGHTS UNDER THE SUNSHINE ORDINANCE OR TO REPORT A VIOLATION OF THE ORDINANCE, CONTACT THE SUNSHINE ORDINANCE TASK FORCE. Sunshine Ordinance Task Force City Hall 1 Dr Carlton B. Goodlett Place, Room 244 San Francisco, CA (415) by fax at (415) or by at sotf@sfgov.org Citizens interested in obtaining a free copy of the Sunshine Ordinance can request a copy from Mr. Darby or by printing Chapter 67 of the San Francisco Administrative Code on the Internet, Any materials distributed to the Retirement Board (or committee) within 72 hours of the meeting or after distribution of the agenda packet to Board (or committee) members are available for public inspection at SFERS, 1145 Market Street, 7 th Floor, during regular office hours. Lobbyist Registration and Reporting Requirements Individuals and entities that influence or attempt to influence local legislative or administrative action may be required by the San Francisco Lobbyist Ordinance (San Francisco Campaign and Governmental Conduct Code sections ) to register and report lobbying activity. For more information about the Lobbyist Ordinance, please contact the Ethics Commission at 25 Van Ness Avenue, Suite 220, San Francisco, CA 94102, telephone (415) , fax (415) and web site:

3 Page 3 of 16 OPENING CALENDAR President Cohen call the meeting to order at 1:00 PM. 1. Pledge of Allegiance 2. Roll Call Commissioner Malia Cohen 1:00 PM Commissioner Leona Bridges 1:24 PM Commissioner Joseph D. Driscoll 1:00 PM Commissioner Victor Makras 1:00 PM Commissioner Herb Meiberger, CFA 1:00 PM Commissioner Wendy Paskin-Jordan 1:00 PM Commissioner Brian Stansbury 1:00 PM General Public Comment President Cohen called for general public comment. Patrick Monette-Shaw addressed the Board in opposition to a potential investment in the Mayor s Office of Housing Down payment Assistance Loan Program because there was no secondary market for that type of investment, and suggest that the Retirement Board vote on the threshold issue of whether to invest with another City agency. He also recommended the online posting of Retirement Board meeting materials. He submitted the following written statement, which he represented was an accurate summary of his public comment: Regarding potential investment in MOHCD s DALP loan pool, it was good learning SFERS is only being asked to purchase the $26.1 million investment because there s no other secondary market willing to purchase it. Unfortunately, this simultaneously suggests SFERS may be laboring under the greater fool theory, where an investor makes a questionable investment using an assumption they ll be able to sell it later to an even greater fool. Don t be lured into buying the DALP package not because you believe it is worth the price, but rather because you may believe you will be able to sell it to someone else at an even higher price somewhere down the road. Indeed you should curtail any further Investment Staff time conducting due diligence until you vote on the threshold matter Commissioner Stansbury raised that it would be unprecedented for SFERS to invest in another City agency, which is akin to self-dealing. John Furlan distributed a handout and addressed the Board regarding implementation of a strategy to reduce risk in the portfolio, and recommended the development of an incentive compensation program for investment staff. Kay Walker, retiree, addressed the Board regarding liquidity concerns raised by the potential investment in the Mayor s Office of Housing DALP program and recommended that staff conduct further due diligence. She suggested the City use the proceeds from any SFERS investment in DALP for below market housing.

4 Page 4 of 16 Jed Holtzman, Fossil Free San Francisco, informed the Board that the State legislature recently passed legislation (SB 158) requiring CalPERS and CalSTRS to divest from coal investments, and that the legislation is now before the Governor. He also noted the State legislature is considering legislation that will regulate or affect fossil fuel. He also noted the Retirement Board s experience with Tobacco and Sudan divestment and urged strong action. Sai Orr addressed the Board regarding his communications to Board members related to the performance and expense ratios of funds in the Deferred Compensation Plan, his view that the SFDCP lacked options for participants to adjust investments for market changes, including a potential bear market. He also spoke in opposition to investment in hedge funds. President Cohen announced Supervisor Avalos had requested a hearing at the Board of Supervisors on the status of fossil fuel divestment. CLOSED SESSION Action Item Closed Session. President Cohen called for public comment, including on whether the Board should go into closed session. Patrick Monette-Shaw addressed the Board regarding delays in the hedge fund RFP review process and requested confirmation that discussion of the DALP program was not a subject for the Closed Session. He submitted the following written statement, which he represented was an accurate summary of his public comment: I d like a categorical assurance from SFERS President or Vice President that the MOHCD DALP investment won t be discussed during today s closed session. As for the hedge fund investment, if the CIO believes it is the only way to protect against a downside, what s taking so long to implement the plan? What s holding up the hedge fund panel? Will the market decline before SFERS invests in hedge funds? During Mr. Huish s performance review, say Thank goodness for the SFGOV TV closed captioning. Clearly recorded on SFGOV tape was a lengthy, heated argument during the CIO report concerning composition of the Hedge Fund review panel, apparently increased from five to six members, including SFERS General Consultant, which the Board directed last January not be part of the panel. Huish stated If you vote for us to fire the consultant that we have hired, we will fire the consultant and replace them. President Cohen confirmed that DALP was not before the Board at this meeting. Kay Walker requested the date of the Board of Supervisors hearing date on fossil fuels. Jay Huish, Executive Director, agreed to post the information on the SFERS web site when available.

5 Page 5 of 16 Commissioner Bridges joined the meeting at 1:24 PM. a) Recommendations and Possible Action on Purchases of Particular, Specific Pension Fund Investments under California Government Code Section (3 investment recommendations) (Discussion and Possible Action) The Board entered closed session on item (a) at 1:30 PM. The following individuals were present for closed session on item (a): Commissioners Bridges, Cohen, Driscoll, Makras, Meiberger, Paskin-Jordan, Stansbury; Jay Huish, Executive Director; Caryn Bortnick, Deputy Director; William J. Coaker, Chief Investment Officer; Bob Shaw, Managing Director for Public Markets; Art Wang, Managing Director for Private Markets; Tanya Kemp, Senior Portfolio Manager; Glen Schwartz, Senior Investment Officer, Cynthia Wong, Security Analyst; Katie Porter, William Lin and Tran Ly, Deputy City Attorneys; Norm Nickens, Board Secretary; Anita Ng, Marina Kedrun and Craig Beach, Cambridge Associates. Commissioner Cohen left the meeting at 2:03 PM and returned at 2:10 PM. Commissioner Makras left the meeting at 2:12 PM and returned at 2:15 PM. Commissioner Stansbury left the meeting at 2:25 PM and returned at 2:28 PM. Commissioner Meiberger left the meeting at 2:29 PM and returned at 2:35 PM. Closed session on item (a) concluded at 2:45 PM. Caryn Bortnick, Deputy Director; William J. Coaker, Chief Investment Officer; Bob Shaw, Managing Director for Public Markets; Art Wang, Managing Director for Private Markets; Tanya Kemp, Senior Portfolio Manager; Glen Schwartz, Senior Investment Office; Cynthia Wong, Security Analyst; William Lin and Tran Ly, Deputy City Attorneys; Norm Nickens, Board Secretary; and Anita Ng, Craig Beach, and Marina Kedrun, Cambridge Associates left the closed session at 2:45 PM. b) Public Employee Performance Evaluation Executive Director Jay Huish: California Government Code Section 54957(b), San Francisco Administrative Code Section 67.10(b). Closed session on item (b) began at 2:45 PM. The following individuals were present for closed session on item (b): Commissioners Bridges, Cohen, Driscoll, Makras, Meiberger, Paskin-Jordan, Stansbury; Jay Huish, Executive Director; Katie Porter, Deputy City Attorney. Commissioner Paskin-Jordan left the meeting at 4:07 PM and returned at 4:10 PM. Commissioner Stansbury left the meeting at 4:09 PM and returned at 4:11 PM.

6 Page 6 of 16 Closed session on item (b) ended at 4:55 PM and the Board returned to open session. Commissioner Bridges left the meeting at 4:55 PM. The Board recessed from 4:55 PM to 5:10 PM. Action: Moved by Commissioner Driscoll, Seconded by Commissioner Stansbury to not disclose discussion held in Closed Session under San Francisco Administrative Code Section 67.12(a). Ayes: Cohen, Driscoll, Makras, Meiberger, Paskin-Jordan, Stansbury Absent: Bridges Action Item Approval of the Minutes of the August 12, 2015 Retirement Board Meeting Documents provided to the Retirement Board prior to the current meeting: Draft Minutes of the August 12, 2015 Retirement Board Meeting Patrick Monette-Shaw addressed to the Board regarding the preparation of the Board Minutes, and requested additional detail be added to the CIO Report portion of the minutes regarding the hedge fund selection committee. He submitted the following written statement, which he represented was an accurate summary of his public comment: As with SFERS July 8 minutes that didn t accurately summarize the gist of the actual conversation held, SFERS Executive Secretary again seems to have gone too far in eliding omitting from the August 12 meeting minutes significant discussion that occurred during the CIO s report. Clearly recorded on the SFGOV TV closed captioning was a lengthy, heated argument concerning composition of the Hedge Fund review panel, apparently increased from five to six members, including SFERS General Consultant which the Board directed last January not be made part of the panel. Huish stated If you vote for us to fire the consultant that we have hired, we will fire the consultant and replace them. The closed captioning clearly recorded the conversation that there would be a consultant who wasn t the General Consultant to SFERS, so this process is flawed. Again, you shouldn t adopt these minutes, and continue adoption to your October meeting. Commissioner Makras asked that the minutes be amended to remove certain bolded, underlined text. Deputy City Attorney Katie Porter explained that the bolded, underlined text was part of a written summary of public comment submitted by a member of the public, and was bolded and underlined in the submitted statement. She advised against changing the format of the written summary.

7 Page 7 of 16 Action: Moved by Commissioner Makras, Seconded by Commissioner Meiberger to Approve Minutes of the August 12, 2015 Retirement Board Meeting. Ayes: Cohen, Driscoll, Makras, Meiberger, Paskin-Jordan, Stansbury Absent: Bridges Action Item Approval of the Minutes of the July 8, 2015 Retirement Board Meeting Documents provided to the Retirement Board prior to the current meeting: Draft Minutes of the July 8, 2015 Retirement Board Meeting Patrick Monette-Shaw addressed the Board regarding the preparation of the Minutes. He felt they were incomplete because they did not reflect Commissioner Stansbury s comment that an investment with the City would be unprecedented. Commissioner Stansbury stated he was satisfied that the minutes captured the spirit of what was said in the discussion. Commissioner Bridges joined the meeting at 5:17 PM. Commissioner Driscoll recommended that the Board minutes include a reference that video of the meetings are available on the web at: Action: Moved by Commissioner Meiberger, Seconded by Commissioner Makras to Approve Minutes of the July 8, 2015 Retirement Board Meeting, with correction of one typographical error on page 9. Ayes: Bridges, Cohen, Driscoll, Makras, Meiberger, Paskin-Jordan, Stansbury CONSENT CALENDAR All matters listed hereunder constitute a Consent Calendar, are considered to be routine by the Retirement Board and will be acted upon by a single vote of the Retirement Board. There will be no separate discussion of these items unless a member of the Retirement Board so requests, in which event the matter shall be removed from the Consent Calendar and considered as a separate item Action Item Consent Calendar a Action Item Voluntary Retirement Board List No b Action Item Decisions of Hearing Officers

8 Page 8 of 16 Jorge M. Avendano Effective Date: 1/4/14 Eugene G. Duffy Effective Date: 1/1/15 Gabriela C. Fischer Effective Date: 1/15/14 Michael Germano Effective Date: 7/1/15 Donald R. Greggs Effective Date: 2/18/14 Pauline Hnatow Effective Date: 10/4/14 Thomas J. Kohmann Effective Date: 12/22/12 Maureen McCrystle Effective Date: 4/26/14 Wilhelmina A. McGriger Effective Date: 6/30/15 Vincent J. Nolan Effective Date: 6/25/11 Dante C. Quiba Effective Date: 8/1/ Tile Setter Public Works 7449 Sewer Service Worker PUC-Clean Water Q4 Police Officer III Police 7355 Truck Driver Library 9163 Transit Operator MTA 0382 Inspector III Police H20 Lieutenant Fire 420C Deputy Court Clerk II Trial Courts 9163 Transit Operator MTA H40 Battalion Chief Fire 1426 Sr. Clerk Typist Human Services Ordinary Disability Retirement Ordinary Disability Retirement Industrial Disability Retirement Ordinary Disability Retirement Ordinary Disability Retirement Industrial Disability Retirement Industrial Disability Retirement Ordinary Disability Retirement Ordinary Disability Retirement Industrial Disability Retirement Denied Ordinary Disability Retirement c Action Item Petition for Rehearing Vincent J. Nolan Effective Date: 6/25/11 H40 Battalion Chief Fire Industrial Disability Retirement Denied d Action Item Travel Requests Request Travel Approval for Commissioner Malia Cohen to attend CalPERS Diversity Forum, September 10, 2015, Sacramento, CA. Request Travel Approval for Commissioner Joseph Driscoll to attend both The Hedge Fund Due Diligence Master Class, September 24-25, 2015, and Co-Investing: The Fall Summit, September 28-29, 2015, New York, NY. Request Travel Approval for Commissioner Leona Bridges to attend the CII 2015 Fall Conference, September 30 October 2, 2015, Boston, MA.

9 Page 9 of 16 Request Travel Approval for Commissioners Wendy Paskin-Jordan, Malia Cohen and Victor Makras, to attend the Cambridge Conference, October 28-29, 2015, Boston, MA. Documents provided to the Retirement Board prior to the current meeting: Voluntary Retirement Board List, Hearing Officer Decisions, and Travel Requests. There was none. Action: Moved by Commissioner Makras, Seconded by Commissioner Meiberger to Approve the Consent Calendar. Ayes: Bridges, Cohen, Driscoll, Makras, Meiberger, Paskin-Jordan, Stansbury INVESTMENT CALENDAR Discussion Item Report on Investment Performance of the Retirement Fund for the Quarter Ended June 30, 2015 Documents provided to the Board prior to the current meeting: Staff Report This item was continued to a future Board meeting Discussion Item Report on Managers Under Review Documents provided to the Board prior to the current meeting: Staff Memorandum and Report This item was continued to a future Board meeting Action Item Annual Report and Recommendation on U.S. Tobacco Divestiture: Level III of the SFERS Social Investment Policy Documents provided to the Board prior to the current meeting: Staff Memorandum This item was continued to a future Board meeting Action Item Annual Report and Recommendation on Targeted Divestment in Sudan: Level III of the SFERS Social Investment Policy

10 Page 10 of 16 Documents provided to the Board prior to the current meeting: Staff Memorandum This item was continued to a future Board meeting Action Item Recommendation to Cancel and Reissue Request for Proposal for Global Custody and Securities Lending Documents provided to the Board prior to the current meeting: Request for Proposal for Global Custody and Securities Lending Services William J. Coaker, Jr., Chief Investment Officer, Robert Shaw, Managing Director for Public Markets, and Eunice McHugh, Senior Portfolio Manager, submitted a written report on this item. Mr. Shaw reported that in August 2013, the Retirement Board approved the issuance a Request for Proposals for Global Custody and Securities Lending Services (the "Custody RFP"). Staff issued the Custody RFP and evaluated the four Global Custody proposals received. The Board approved three finalists in January Further evaluation and due diligence on the finalists remains pending. Given the length of time since the receipt of proposals, Staff recommended that the Board cancel the currently outstanding Custody RFP and issue a revised and updated RFP for Global Custody and Securities Lending Services. Commissioner Meiberger asked if Callen Associates would be involved in the review of the proposals. Mr. Coaker confirmed that they would participate as technical advisors in the review process. Commissioner Meiberger inquired whether the RFP asked about the China securities custody experience of potential bidders. Mr. Shaw noted that additional questions will be added to the RFP relating to foreign custody capacity. Commissioner Meiberger inquired whether the RFP asked about Securities Lending experience, and specifically if any assets have ever frozen by a bidder. Mr. Shaw noted that additional questions will be added to the RFP relating to the freezing of Securities Lending assets. Commissioner Makras recommended that the Board split the cancellation of the RFP and the approval to issue a revised RFP, with the Board canceling the RFP at this meeting and approving issuance of the revised RFP at a future meeting, to allow for Board members to gather information about issues or subjects they might want included in the RFP. Jay Huish, Executive Director, agreed to delay issuing the revised RFP. Commissioner Bridges recommended canceling and reissuing, and also noted the need to explore sub-custodian options, as well as frontier and emerging markets. Commissioner Driscoll noted that the current RFP can be canceled and reissued at time certain. He further noted that the custodian has responsibility for tax compliance, and additional questions should be added to the RFP relating to this capacity.

11 Page 11 of 16 Commissioner Bridges recommended that securities lending be viewed as an investment asset, and not merely an operations function. Commissioner Meiberger requested that the Board be provided with a red line copy reflecting the additions discussed by the Board prior to the RFP being presented to the Board for consideration and approval to reissue. Commissioner Makras recommended that the Board cancel the current RFP and bring it back to the Board at the next meeting for approval to reissue. Commissioner Paskin-Jordan noted that there is a very limited pool of potential bidders. There was none. Action: Moved by Commissioner Makras, Seconded by Commissioner Bridges to Approve Cancelation of the Existing Request for Proposal for Global Custody and Securities Lending Services and to direct staff to present at the next Board meeting a Revised Request for Proposal. Ayes: Bridges, Cohen, Driscoll, Makras, Meiberger, Paskin-Jordan, Stansbury Action Item Recommendation to Commit up to $100 million to Cerberus Institutional Real Estate Partners IV, L.P. Documents provided to the Retirement Board prior to the current meeting: Staff and Consultant Report William J. Coaker, Jr., Chief Investment Officer, Art Wang, Managing Director for Private Markets, Peter Lin, Securities Analyst, and Craig Beach, Cambridge, submitted an oral and written report on this item. Mr. Wang reported that Cerberus Capital Management is raising its fourth global real estate fund, Cerberus Institutional Real Estate Partners IV, L.P. ( CIREP ), to target opportunistic real estate investments. The Fund seeks to invest roughly half of its commitments in the United States and the remainder in Western Europe. CIREP will primarily target highly complex or distressed transactions where competition is limited. In addition, the CIREP team follows a deep value-oriented approach to investing to generate returns regardless of economic cycles. On occasion, CIREP will leverage the multi-disciplinary capabilities of the broader Cerberus organization to assist in underwriting a variety of investment structures. The CIREP team is headquartered in New York and currently consists of over thirty-seven investment professionals dedicated to the strategy across four global offices. Since the inception of the real estate platform in 2004, CIREP has sponsored three funds with over $3.2 billion in

12 Page 12 of 16 commitments Cerberus Institutional Real Estate Partners I, LP. (2004), Cerberus Institutional Real Estate Partners II, LP. (2008), and Cerberus Institutional Real Estate Partners Ill, LP. (2012). An investment in CIREP IV would be SFERS' first commitment to Cerberus' real estate franchise. The Real Assets team recommended the Fund based on the following rationale: Value-oriented approach focused on distressed real estate assets Well-developed platform with a highly experienced team that has invested in multiple market cycles since 1994 Broad investment mandate to portfolio construction with diversification across property types, asset types and geography Access to broader Cerberus' capabilities and expertise to invest in highly complex deals with limited competition There was none. Action: Moved by Commissioner Stansbury, Seconded by Commissioner Meiberger to Approve commitment of up to $100 million to Cerberus Institutional Real Estate Partners IV, L.P. Ayes: Bridges, Cohen, Driscoll, Makras, Meiberger, Paskin-Jordan, Stansbury President Cohen call item #16 out of order Action Item Approval of President s Committee Appointments to the Governance Committee Documents provided to the Board prior to the current meeting: President s memorandum President Cohen noted that she had made recommendations for Committee assignments, which included the recommendation of Commissioner Makras as Chair of the Governance Committee. Commissioner Stansbury subsequently expressed interest in chairing the Governance Committee. There was none. Commissioner Makras expressed his appreciation for the Board continuing this item so that he could be part of the discussion, noted the Board has not been consistent in its consideration of seniority on Committees, and spoke in support of Commissioner Stansbury as Chair of the Governance Committee. Action: Moved by Commissioner Makras, Seconded by Commissioner Paskin-Jordan to Approve Recommended Committee Appointments to the Governance Committee, with Commissioner

13 Page 13 of 16 Stansbury as Chairperson of the Committee. Ayes: Bridges, Cohen, Driscoll, Makras, Meiberger, Paskin-Jordan, Stansbury Commissioner Cohen returned to item # Discussion Item Chief Investment Officer Report Documents provided to the Board prior to the current meeting: CIO Report William J. Coaker, Jr., Chief Investment Officer, submitted a written report on this item. Mr. Coaker reported that the Retirement Fund was valued at $20.1 billion as of August 31, He reported the following investment actions previously taken in Closed Session: Apollo Natural Resources Partners II, LP. At its meeting on May 13, 2015, the Retirement Board approved in closed session an investment of up to $100 million Apollo Natural Resources Partners II, LP. ("Fund II"). The investment was approved by the following vote: Ayes: Bridges, Cohen, Driscoll, Makras, Paskin-Jordan Nays: Meiberger Absent: Stansbury SFERS' $100 million investment closed on August 21, SFERS' investment in Fund II is classified as a natural resources investment within SFERS' Real Assets portfolio. Apollo Global Management is a leading global alternative investment firm that was founded in 1990 and more information about the Apollo is available on Atalaya SOF VI At its meeting on June 10, 2015, the Retirement Board approved in closed session an investment of up to $25 million in Atalaya SOF VI, LP. ( Atalaya"). The investment was approved by the following vote: Ayes: Bridges, Cohen, Driscoll, Meiberger, Paskin-Jordan, Stansbury Absent: Makras SFERS' $25.0 million investment in Atalaya closed on August 13, Ivan Zinn founded Atalaya in The firm is headquartered in New York, NY. More information about Atalaya is available on ENR Partners LP

14 Page 14 of 16 At its meeting on August 12, 2015, the Retirement Board approved in closed session an investment of up to $10 - million ENR Partners LP ("Fund I"}. The investment was approved by the following vote: Ayes: Cohen, Driscoll, Paskin-Jordan, Stansbury, Meiberger, Bridges, Absent: Makras SFERS' $10 million investment closed on August 21, SFERS' investment in Fund I is classified as a natural resources investment within SFERS' Real Assets portfolio. Edge Natural Resources LLC was founded in 2015 and more information about the firm is available on There was none. Commissioner Meiberger noted that the return on the portfolio was 3.96% for the fiscal year ended June 30, Action: Possible Action on Pending Proxies. There was no discussion or action on this portion of item 14. DEFERRED COMPENSATION PLAN CALENDAR Discussion Item SFDCP Manager Report Documents provided to the Retirement Board prior to the current meeting: Staff Memorandum and SFDCP Monthly Activity Report Caryn Bortnick, Deputy Executive Director and Interim Deferred Compensation Manager, submitted a written report on this item. President Cohen accepted the report as submitted. There were no questions from the Board. There was none. Action: This was a discussion only item.

15 Page 15 of 16 ADMINISTRATION CALENDAR Discussion Item Executive Director s Report Documents provided to the Board prior to the current meeting: Executive Director s Report Jay Huish, Executive Director, submitted a written report on this item. President Cohen accepted the report as submitted. The report provided the following: Administrative Update: Update on the POB Lawsuit related to eligibility for SFERS Supplemental COLA; Update on Senate Bill 185 CALPERS and CalSTRS Divestment from Thermal Coal Companies; City Meetings with Ratings Agencies; SFERS Senior Staff Retirement Maria Newport, Retirement Services Administrator, October 30, 2015 Attachments for Informational Purposes: The Cortex Report of Educational Opportunities Blackout Period List Forward Calendar There was none. Director Huish noted the upcoming retirement of Maria Newport, and acknowledged her 30 year career with SFERS. Action: This was a discussion only item Discussion Item Retirement Board Member Good of the Order Documents provided to the Board prior to the current meeting: none Commissioner Makras requested that a letter be sent to other public deferred compensation plans regarding their experience with insurance wrapper on Stable Value funds. Commissioner Makras requested an update on the development of a list of fossil fuel offenders. Mr. Huish noted that this issue is being considered through the Board s ESG Committee. Commissioner Stansbury requested that a review of the SFERS telephone tree and automated response system be placed on the agenda at a future meeting. He recommended the development of System statement on customer services. Mr. Huish noted that this will be addressed as part of the planned Strategic Plan update.

16 Page 16 of 16 Commissioner Driscoll noted recent improvements to the SFERS web site, and recommended that options be presented to the Board to improve service delivery as part of the Strategic plan update. Commissioner Meiberger requested that supporting materials for Board meetings be place on the web along with the agenda. He also distributed articles to the Board regarding hedge funds and market volatility. President Cohen requested an update on the emerging managers program. There was none. Action: This was a discussion only item Discussion Item Retirement Board Member Reports and Comments Documents provided to the Board prior to the current meeting: Conference reports. Commissioner Driscoll reported on his attendance at the World Pension Forum Summer Summit, Investment in a Changing World, August 18-21, 2015, in Aspen, CO and the Public Pension Funding Forum, Joint Conference by the National Conference on Public Employee Retirement Systems (NCPERS) and the Institute on Public Pension Solutions (IPPS), August 23-25, 2015, in Berkeley, CA. There was none. Action: This was a discussion only item Adjournment Having no further business, the Board adjourned the meeting at 6:09 PM. Respectfully submitted, Jay Huish, Executive Director