Administration, Investment & Fiscal Management Board Meeting - November 16, 2023
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Administration, Investment & Fiscal Management Board Meeting - November 16, 2023
The Administration, Investment & Fiscal Management Board of Sacramento met on November 16, 2023, at 1:30 p.m. Vice Chair Colville presided, with members Coletto, O'Toole, and Zamanudin present. Chair Bader was absent. The meeting included a land acknowledgement, pledge of allegiance, and the unanimous approval of all agenda items.
Consent Calendar
- Approved the meeting minutes of September 21, 2023.
- Accepted the SCERS Monthly Investment Reports for July 31, 2023, August 31, 2023, and September 30, 2023.
Discussion Items
- Item 5 – Segal Marco Advisors Quarterly Investment Performance Report (September 2023): Jeffrey Nipp presented the report. He noted that Q3 2023 was challenging for stocks and bonds, with the S&P 500 down about 3% for the quarter. However, November saw a sharp rebound. The portfolio outperformed its benchmark, returning -2.8% versus -3.5%. The board discussed asset allocation, duration strategy, and the impact of interest rates. The report was accepted unanimously.
- Item 6 – SCERS Quarterly Investment Report (September 2023): Chief Investment Officer Stacy Hussey reported that the portfolio balance was $225 million on September 30, rising to $237 million by mid-November (a 5% increase in 11 trading days). She noted the swift market rebound and the upcoming Fed meeting on December 12, 2023. The board accepted the report unanimously.
- Item 7 – Foster & Foster SCERS GASB 67 & 68 Report (FY 2023): Drew Ballard, Senior Consulting Actuary, presented the accounting report. The net pension liability was $11.8 million, resulting in a funded ratio of 95.5%. He explained the actuarial smoothing process and the crossover test confirming the discount rate of 6% was appropriate. The report was accepted unanimously.
- Item 8 – Foster & Foster SCERS Actuarial Valuation Report (FY 2023): Drew Ballard presented the funding valuation. The plan had one remaining active member and 75 retirees/beneficiaries. Total liabilities were $261.8 million, with assets of $250 million. The unfunded liability of $11.8 million is being amortized over 11 years, with a recommended city contribution of $1.36 million for the fiscal year beginning July 1, 2024. The funded ratio improved from 93.9% to 95.5% on a market value basis. The board discussed assumptions and commended the plan's strong funding status. The report was accepted unanimously.
Key Outcomes
- All agenda items were approved by unanimous votes (4-0).
- The consent calendar was adopted in one motion.
- Each discussion item (5–8) was approved via separate motions.
- No public comments were received.
- The meeting adjourned at 2:17 p.m.
Meeting Transcript
30 seconds has begun. Chair staff is ready when you are. Come to the November 16th, 2023 at 1.30, a meeting of the administration investment and fiscal management board. The meeting is now called to order. Jake, would you please call roll to establish quorum? Thank you, Chair. Member Coletto. Here. Member O'Toole. Member Zimani Dinn. Present. Chair Bader is absent. And Vice Chair Colville. Yes. Thank you. We have quorum. I know. I would like to remind members of the public and chambers that if you'd like to speak on an agenda item, please turn in a speaker slip when the item begins. You have two minutes to speak once you're called on. After the first speaker, we will no longer set speaker slips. We will now proceed with today's agenda, starting with the land acknowledgement. Please rise. Yes. Excellent. Please rise for the opening acknowledgments in honor of the Sacramento's indigenous people and tribal lands. The original people of this land, Nision people, the Southern Maidu Valley and Plains Biwak, Patwin Wintham peoples, and the people of the Wilton Rancheria, Sacramento's only federally recognized tribe. May we acknowledge and honor the native people who came before us and still walk beside us today on these ancestral lands by choosing to gather today in the active practice of acknowledgement and appreciation for Sacramento's Indigenous People's History, contributions, and lives. Thank you. Please run. The salute. I pledge allegiance to the flag of the United States of America and to the Republic for which it stands. One nation under God, indivisible with liberty and justice for all. Thank you. All right, our first business today is approval of the consent calendar. Clerk, are there any members of the public who wish to speak on this item? Thank you, Chair. I have no speaker slips on this item. Okay. I'll move consent. Anyone anyone wish to speak on this? No. On board? Okay. Please take roll, please. Member Coletto? Aye. Member O'Toole? Aye. Member Zanabidin? Aye.
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