OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Administration, Investment & Fiscal Management Board Special Meeting - November 19, 2020

Administration, Investment, & Fiscal Management Board — Thursday, November 19, 2020
BodySacramento, California
SessionAdministration, Investment, & Fiscal Management Board
DateThursday, November 19, 2020
StatusFILED
Video Record
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0:10

All right.

0:10

Well, thank you, everyone.

0:12

Um, I want to call this meeting of the administration administration investment and finance management board uh to uh uh open uh meta secretary, will you please uh start the roll call?

0:27

Nathan Bader.

0:29

Here Mr.

0:30

Colville here.

0:33

Ms.

0:33

Donholm.

0:35

Here Mr.

0:36

Leon here.

0:39

Hey, we can go to the consent calendar.

0:42

All right.

0:43

Well, thank you again, everybody for joining.

0:45

Um the next item on the agenda is the consent calendar.

0:48

We'll be the motion in a second for the consent calendar.

0:52

For the record, I have no callers on the consent calendar.

0:55

Oh actually, Madam Secretary, do I uh I do do that before.

1:00

I'm sorry.

1:01

Yes, it was a consent calendar, so I automatically just thought we were gonna do it afterwards, but we are make a motion to move the calendar consent calendar.

1:14

I can second that.

1:17

Okay, um Mr.

1:20

Bader.

1:21

Yes, Mr.

1:23

Colville.

1:24

Yes.

1:25

Ms.

1:25

Holm.

1:26

Yes, Mr.

1:27

Leon.

1:28

Yes.

1:29

Okay.

1:32

All right.

1:33

Uh moving on to the discussion calendar.

1:37

We are at item number five, uh, which is the uh advisors coordinate performance uh investment performance review.

1:47

Uh you have the floor.

1:50

All right.

1:50

Well, hello everybody.

1:51

It's good to see everyone again.

1:53

Um, hey, do you all have my report up in front of you?

2:01

Am I should I be sharing my screen right now?

2:07

Yeah, if you could share your screen, Craig, because I can't fit it on my everything on my one little laptop.

2:13

It'd be good for all video too to have the screen share, Craig.

2:17

Okay.

2:32

All right.

2:32

Hopefully you all can you all see this.

2:37

Uh not yet.

2:39

I always forget Zoom is different from Teams.

2:42

I'm sorry.

2:43

On Teams, you just click and it shows up, and Zoom, you've got to do a double click.

2:46

I apologize.

2:47

I should be I should be an expert at this by now.

2:50

Um so this uh review takes a quick look at what what the markets did in the third quarter.

2:59

Uh you know, we certainly met not too long ago, so you know, I'd I'd caught you up, you know, on what was going on in the world at that stage.

3:07

Um you see here the third quarter ended as a really good quarter for both equity and fixed income markets.

3:14

Um the markets seem to overlook any type of COVID news uh during the period.

3:20

Uh for the most part, any type of election disruption or anything like that appeared to be kind of you know relatively small demands.

3:29

Uh so you see here uh you know, U.S.

3:32

equities up another 9.2% for the quarter, uh, 15% over that one year period.

3:38

Uh but you do see you know pretty sharp divergence between what is happening here in the US versus globally.

3:44

Um, you see those international equity markets down significantly lower uh than domestic equity, uh so up only half a percent over that one year.

Discussion Breakdown — Share of Meeting
Investment Policy███████████████████████████████████████████43%
Pension Funding███████████████████████████████31%
Procedural██████████████████████22%
COVID-19 Response████4%
Summary of Proceedings

Administration, Investment & Fiscal Management Board Special Meeting – November 19, 2020

The Administration, Investment & Fiscal Management (AIFM) Board held a special meeting on November 19, 2020, at 9:45 AM (UTC), conducted via teleconference due to COVID-19. The board reviewed and approved investment performance reports, actuarial valuations, and administrative items. All votes were unanimous.

Consent Calendar

  • Approved the September 17, 2020 meeting minutes.
  • Accepted the SCERS Monthly Investment Reports for July 31, August 31, and September 30, 2020. All items passed by a 4-0 vote (Bader, Colville, Holm, Leon).

Discussion Items

  • Item 5 – Segal Marco Advisors Quarterly Investment Performance Report (September 30, 2020): Craig Chaikin presented market trends, noting a strong third quarter for equities (U.S. equities up 9.2% for the quarter, 15% year-over-year) and fixed income, but with a sharp divergence between growth and value stocks. The SCERS portfolio ended the quarter at approximately $274.7 million in assets, returning just under 6% for the quarter, outperforming the actuarial assumption and custom benchmark. The board accepted the report unanimously.
  • Item 6 – SCERS Quarterly Investment Report (September 30, 2020): Chief Investment Officer Stacy Hussey updated the board on asset allocation, describing a recent rotation from growth to value stocks following the election. She noted that the large-cap growth fund had been trimmed to stay within policy ranges and that fixed income returns are expected to moderate given low interest rates. The board accepted the report unanimously.
  • Item 7 – Bartel Associates SCERS GASB 67/68 Report (June 30, 2020): Mary Beth Redding presented the financial reporting numbers, showing a net pension liability of $33.5 million and a funded status of just under 89% as of June 30, 2020 (measured at market value). The board accepted the report unanimously.
  • Item 8 – Bartel Associates SCERS Actuarial Valuation Report (June 30, 2020): Mary Beth Redding also presented the actuarial valuation, which uses a smoothed asset value (three-year smoothing). Key metrics: accrued liability $297 million, actuarial value of assets $267 million, unfunded liability $30 million, funded ratio approximately 90%. The recommended contribution for FY 2021-22 is $3.479 million, slightly up from the prior year due to underperformance. The board accepted the report unanimously.
  • Item 9 – AIFM Board Regular Meeting Schedule for Calendar Year 2021: The board approved the proposed meeting schedule for 2021 unanimously.
  • Item 10 – Selection of Chair and Vice Chair: Manny Leon was re-elected as Chair, and Jason Colville was re-elected as Vice Chair, both by acclamation.

Key Outcomes

  • All consent calendar and discussion items were approved unanimously (4-0).
  • The board re-elected Manny Leon as Chair and Jason Colville as Vice Chair for the upcoming year.
  • No public comments were received on any agenda items or matters not on the agenda.

Meeting Transcript

All right. Well, thank you, everyone. Um, I want to call this meeting of the administration administration investment and finance management board uh to uh uh open uh meta secretary, will you please uh start the roll call? Nathan Bader. Here Mr. Colville here. Ms. Donholm. Here Mr. Leon here. Hey, we can go to the consent calendar. All right. Well, thank you again, everybody for joining. Um the next item on the agenda is the consent calendar. We'll be the motion in a second for the consent calendar. For the record, I have no callers on the consent calendar. Oh actually, Madam Secretary, do I uh I do do that before. I'm sorry. Yes, it was a consent calendar, so I automatically just thought we were gonna do it afterwards, but we are make a motion to move the calendar consent calendar. I can second that. Okay, um Mr. Bader. Yes, Mr. Colville. Yes. Ms. Holm. Yes, Mr. Leon. Yes. Okay. All right. Uh moving on to the discussion calendar. We are at item number five, uh, which is the uh advisors coordinate performance uh investment performance review. Uh you have the floor. All right. Well, hello everybody. It's good to see everyone again. Um, hey, do you all have my report up in front of you? Am I should I be sharing my screen right now? Yeah, if you could share your screen, Craig, because I can't fit it on my everything on my one little laptop. It'd be good for all video too to have the screen share, Craig. Okay. All right. Hopefully you all can you all see this. Uh not yet. I always forget Zoom is different from Teams. I'm sorry. On Teams, you just click and it shows up, and Zoom, you've got to do a double click. I apologize.

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