Sacramento AIFM Board Meeting: Feb 10, 2022 — Fiscal Reports, Chair Election
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Administration, Investment & Fiscal Management Board Meeting – February 10, 2022
The Administration, Investment & Fiscal Management Board (AIFM) of the City of Sacramento met via teleconference on Thursday, February 10, 2022, from 1:36 p.m. to 2:15 p.m. Chair Manuel Leon presided. The board unanimously approved all consent calendar items, accepted quarterly investment reports, received the SCERS annual financial audit, and elected new leadership for calendar year 2022.
Consent Calendar
- Approved the minutes from the November 18, 2021 meeting.
- Received and filed the Official City of Sacramento Land Acknowledgement.
- Accepted SCERS monthly investment reports for October, November, and December 2021.
- Approved the continuation of the Bloomberg Agreement for Fiscal Year 2022–2023.
- All consent items were passed by a single 5–0 vote (Members Bach, Bader, Colville, Combs, Leon voting yes).
Discussion Items
- Segal Marco Advisors Quarterly Investment Performance Report (Item 7): Craig Chaikin reported that equity returns were strong in Q4 2021, with the S&P 500 up 11%. The total portfolio earned 6.2% for the quarter and 16.9% for the one-year period. He noted that inflation (CPI at 7.5%) and anticipated Federal Reserve rate hikes are creating volatility in early 2022. The board passed a motion to accept the report (5–0).
- SCERS Quarterly Investment Report (Item 8): Chief Investment Officer Stacy Hussey presented the SCERS portfolio, valued at $317.5 million as of December 31, 2021. She reported that the plan is approximately 110% funded, with a net pension asset of $28.8 million. However, January 2022 saw a roughly 2% decline, and fixed income has underperformed due to rising interest rates. The board accepted the report unanimously (5–0).
- SCERS Annual Financial Report & Audit Letters (Items 9–11): Osvaldo Lopez, Finance Manager, presented the fiscal year 2021 financial statements, which received a clean (unmodified) audit opinion. Key figures: net position increased $48 million to $311 million; investment income rose from $7.6 million to $77 million; plan membership fell from 924 to 876, with only 3 active members. The board received and filed all three items without a vote.
- Selection of Chair and Vice Chair (Item 12): After discussion, Vice Chair Jason Bader was elected Chair for 2022 (motion by Member Colville, second by Chair Leon; vote 5–0). Member John Colville was then elected Vice Chair (motion by Vice Chair Bader, second by Chair Leon; vote 5–0). The new chair will take office at the next meeting.
Board Comments & Introductions
New members David Bach (46 years of investment experience, former CalPERS) and Emily Combs (new City Finance Director) introduced themselves. Chair Leon noted he has served two terms and will be rotating off the board; recruitment for a replacement is ongoing.
Key Outcomes
- All consent calendar items approved 5–0.
- Segal Marco and SCERS quarterly investment reports accepted 5–0.
- FY 2021 SCERS financial report, auditor’s letter, and internal control report received and filed.
- Jason Bader elected Chair and John Colville elected Vice Chair for calendar year 2022.
- No public comments were received on any agenda item.
- Meeting adjourned at 2:15 p.m.
Meeting Transcript
Okay, perfect. Let's change this to something cooler. There we go. It's way better. Okay, welcome everyone. Um, to our February um AIFM meeting. I am pulling up the agenda right now. Uh bear with me one second. All right. Um, welcome everyone again. Uh we'll need to do a roll call for all our members. That's my understanding we have a quorum. Uh, Madam Clerk, may you uh call the roll? Yes, thank you very much. And I do see our newest member is joining us, and I will promote him to a panelist right now. Okay, members, if you have not, please unmute and turn on your video. Member Bob. Here, present. Thank you. Welcome. Member Colville. Here. Member Combs. Here. Vice Chair Bader. Here. And Chair Leon. Here. Thank you. We have quorum. All right, everyone. Thank you very much. Our next item, I think, is the consent calendar, if I'm correct. So we'll need a well, do we have any uh uh uh recommendations for removal of any of the items? If not, we'll need a motion to approve the consent calendar. I'll make a motion. No, sorry, Jason. I'll second the motion. All right, we have a motion in a second. Do we have a discussion any discussion on this? I know it's the consent calendar. All right, Madam Clerk, do we have any any comments from the public on the consent calendar? No, I have no members of the public with their hands raised to make comment on the consent calendar. And I can all right. Oh, sorry, go on. Proceed with the vote. We have a motion by member Colville and a second by Vice Chair Bader. Members again, please unmute and turn on your video. Member Bach. Aye.
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