1

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

MR. MORAN:

We were at 968 and that was So Friday and Tuesday,

through Thursday, the 14th. we made 5 million dollars.

We had suggested that we alter the remaining two searches and accelerate the large cap growth search. Based upon notification that we One

provided in Agenda Item 9 Marvin and Palmer. of the lead portfolio managers from Marvin and Palmer has departed the firm.

Plus, given their

performance over the short and long-term as well as them being on watch list, the hope here is that we would be able to provide you with a short list in March and have meetings in April. Securities lending. We will be working

on an analysis with Mary Pat in regards to the legal authorization as well as the splits that we are receiving compared to and/or contrasted to other fund groups here in the city. And then the last thing is the assault weapons divestment. We provided information

requested by Trustee Ahmad in regards to assault weapons manufacturers and assault weapons sellers. The numbers are -- currently we have, as of February 14th, $184,000 in assault weapons

DEBBIE TYRRELL REPORTING SERVICE (630) 292-1742

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

manufacturers. portfolio.

That is two basis points of the

We have approximately $839,000 in That is nine

retailers that sell assault weapons. basis points of the portfolio.

We also included a draft bill.

House

Bill 1296, which would require to identify all firearm manufacturers. Contact manufacturers

regarding possible divestment in divesting manufacturers, if they continue producing firearms. I don't know where that stands in Springfield, but that is out there as well. And that is the Investment Committee agenda and abbreviated report. MEMBER AHMAD: I have a question about What type of

the 184 on the manufacturers side. accounts are they in? MR. MORAN:

Give me one second.

They are

held by two of our equity fund managers. Rhumbline, the index manager, and then Globeflex, which is a SMID active management. MEMBER NEELY: the actual holdings? MR. MORAN: Yes. Rhumbline holds Do we have the names of

AllianceTech Systems and Globeflex holds Smith and

DEBBIE TYRRELL REPORTING SERVICE (630) 292-1742

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Wesson. MEMBER AHMAD: Wesson? MR. MORAN: Smith and Wesson market value How much is the Smith and

of February 14th is 173,000. MEMBER AHMAD: MR. MORAN: So the vast majority?

Yes. Alliance is only $11,000. 11,000 diversified defense

MEMBER NEELY: MEMBER AHMAD: manufacturer. MR. MORAN:

That is one of the issues we

previously discussed how to define manufacturers as well as sellers. MEMBER AHMAD: question. I think I agree that is a

I think it is a good question a lot of I think in any case Smith

people are dealing with.

and Wesson is defined by virtually all that look at it as a manufacturer and one that we should consider divesting from. MEMBER NEELY: and Wesson? MR. MORAN: find that report. MEMBER NEELY: So I have the cost basis Yes. Currently -- I have to So we lost money on Smith

DEBBIE TYRRELL REPORTING SERVICE (630) 292-1742

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

at 194,318.55 and the unrealized loss of 21,200? MR. MORAN: Correct. And I assume that is as of

MEMBER NEELY: February 14th? MR. MORAN:

Yes, ma'am. I'm sorry. How much was

MEMBER AHMAD: it? MEMBER NEELY: 14th.

21,000 as of February

We have also lost money on Alliance but that

is $2000. MEMBER MARTIN: MEMBER NEELY: a separate account? MR. MORAN: Yes. You can tell. We can tell from this. Any other questions? Globeflex is not -- is it

MEMBER AHMAD: MEMBER NEELY: MR. MORAN:

Absolutely, we can tell.

Depending on the decision that is reached here, we would reach out to all of the other portfolio managers, with the revised policy, precluding any future investments. MEMBER NEELY: This language that we have

has been adopted by other funds that talks about -MEMBER AHMAD: Adopted by Muni, Fire and

DEBBIE TYRRELL REPORTING SERVICE (630) 292-1742

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Laborers.

I'm sorry.

We are Fire.

Municipal,

Police and Laborers and the CTA is going to adopt it as well. MS. BURNS: It is language I drafted. I

am happy to hear that other people are adopting it. MEMBER NEELY: that -MEMBER AHMAD: MS. BURNS: over to staff. MR. MORAN: It wasn't mentioned I can send it to you. I can send it Do you have the one

I do, too.

yesterday, but in talking with Matt, Callan has also -- or they are in the process of drafting a white paper and guidance as it relates to assault manufacturers. you. MS. BURNS: done? MR. MORAN: I can ask. I can certainly Do you know when that will be I don't know if that is of value to

accelerate it prior to our next meeting in March, if you would want to review that as well. MEMBER AHMAD: I think we need --

obviously, we need to have the language reviewed by everybody before it is adopted. Mary Pat, would

DEBBIE TYRRELL REPORTING SERVICE (630) 292-1742

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

you send that? MS. BURNS: language. MEMBER AHMAD: that language in March. With the hope to adopt I do think that this Board I will make a I will circulate the proposed

should divest from Smith and Wesson.

motion to divest from the Smith and Wesson holdings in GlobeFlex. MEMBER NEELY: MEMBER AHMAD: At a loss? Our city is, as you know

treasurer, in many places is in a devastating situation. MEMBER NEELY: MEMBER AHMAD: I couldn't agree more. I think these

manufacturers in particular need to find alternate sources of funding. They should not be using

public money to continue to grow. MEMBER NEELY: percent. I agree with you 100

I also agree with a lot of these gun

manufacturers are small cap companies that divestiture can definitely affect change. Where I disagree with you is I can't vote to divest at a loss. value and then divest. I'd rather see it increase in I can't support a fund that

DEBBIE TYRRELL REPORTING SERVICE (630) 292-1742

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

is 20 percent funded and rounding divesting at a loss. MEMBER STEWART: motion. MEMBER NEELY: Do you have something you I will second the

want to say on the question? MR. MORAN: thing. I would -- just a small

Our funding level is not 20 percent. MEMBER NEELY: MEMBER AHMAD: MEMBER NEELY: I said I was rounding. What is it? Depending on what number

you use. MEMBER AHMAD: Put it back on the record

what number you want it to be. MR. MORAN: We will have updated numbers Last year we were at 28

from the actuary in April. percent GASB.

25 percent market value.

Given that, we doubled the expected or assumed rate of return last year. still writing off 2008 losses. maintain that level. CHAIRMAN SHANAHAN: Martin. MEMBER MARTIN: No. Roll call. Trustee Although we're

Hoping that we

DEBBIE TYRRELL REPORTING SERVICE (630) 292-1742

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Ahmad?

CHAIRMAN SHANAHAN: MEMBER AHMAD: Yes.

Trustee Ahmad.

CHAIRMAN SHANAHAN: MEMBER CARLSON: No.

Trustee Carlson.

CHAIRMAN SHANAHAN: MEMBER STEWART:

Trustee Stewart.

Yes. Trustee Fabrizio. No. Trustee Neely.

CHAIRMAN SHANAHAN: MEMBER FABRIZIO: CHAIRMAN SHANAHAN: MEMBER NEELY: No.

CHAIRMAN SHANAHAN: Motion doesn't pass. MEMBER NEELY:

And I vote no.

I'd like to make a motion

to monitor Smith and Wesson holding corporation with Globeflex and divest when the stock has an unrealized gain no matter how modest. MEMBER AHMAD: MEMBER NEELY: Or neutral. Or neutral. And divest

once it has a neutral position. MEMBER AHMAD: Second. Seconded by Trustee

CHAIRMAN SHANAHAN: Trustee Martin. MEMBER MARTIN: No.

CHAIRMAN SHANAHAN:

Trustee Ahmad.

DEBBIE TYRRELL REPORTING SERVICE (630) 292-1742

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 statement?

MEMBER AHMAD:

Yes. Trustee Carlson.

CHAIRMAN SHANAHAN: MEMBER CARLSON: No.

CHAIRMAN SHANAHAN: MEMBER STEWART:

Trustee Stewart.

Yes. Trustee Fabrizio. No. Trustee Neely.

CHAIRMAN SHANAHAN: MEMBER FABRIZIO: CHAIRMAN SHANAHAN: MEMBER NEELY: Yes.

CHAIRMAN SHANAHAN: MEMBER AHMAD:

And I vote no.

Can I just make a

CHAIRMAN SHANAHAN: MEMBER AHMAD:

Yes.

Every other Board of this Teachers

City has adopted a policy of divesting. have. Transporters have.

The police has.

Municipal has.

And I think it's disappointing that

this Board thinks that it has a different/better approach. CHAIRMAN SHANAHAN: MEMBER AHMAD: MEMBER MARTIN: Not better.

I am just making a point. I think as firemen, I

think we are all sensitive to violence. MEMBER AHMAD: You don't think that the

DEBBIE TYRRELL REPORTING SERVICE (630) 292-1742

10

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

police are? MEMBER MARTIN: when you were speaking. I didn't interrupt you I was making a statement.

I believe firemen are very sensitive to violence in the city. We have all seen it. One

thing that we also have been very careful of in the past on this Board is social investing. We get all kinds of -- there's been reports by the studies done by Northwestern University, which advised pension boards not to do so. I get faxes continuously. As a matter of

fact, I provided one to Trustee Stewart yesterday. As far as different unions and labor organizations wanting us to divest of corporations that were anti labor. What we have done on this board whenever that comes across, we put our participants first. We have a fiduciary duty that is primarily for our participants. And given our funding ratio,

anything that we do has to be with them in mind first. MEMBER STEWART: Firemen's Board. Yes. But this is the

As we stated clearly, we have a

DEBBIE TYRRELL REPORTING SERVICE (630) 292-1742

11

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

very active front line role with this gun violence. I am getting requests now for active shooting training now for the paramedics. coming daily. That is

We're looking to try to coordinate We did some things last

this type of training. week.

Guys are being shot at out there. know.

You

Standing by a block away waiting for the

police to come in to secure an area. We have a direct role in this gun violence. Yeah, maybe at a loss, but it is a It is a statement

statement that needs to be made. that needs to be made. not to do so.

Unfortunately, we decided

We went through the process and I

appreciate that. MEMBER MARTIN: Committee? MR. MORAN: Yes. Is that it for Investment

DEBBIE TYRRELL REPORTING SERVICE (630) 292-1742