Title
Sacramento City Employees’ Retirement System (SCERS or System) Fiscal Year (FY) 2026/27 Asset Allocation Policy
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FileID
File ID: 2026-00740
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Location
Location: Citywide
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Recommendation
Recommendation: Adopt a Resolution to approve an Asset Allocation Policy for SCERS for FY2026/2027.
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Contact
Contact: Stacy Hussey, Chief Investment Officer, (916) 808-7746 shussey@cityofsacramento.org; John Colville, City Treasurer, (916) 808-8297, jcolville@cityofsacramento.org; Office of the City Treasurer
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Presenter
Presenter: Stacy Hussey, Chief Investment Officer, (916) 808-7746 shussey@cityofsacramento.org, Office of the City Treasurer
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Attachments
Attachments:
1-Description/Analysis
2-AIFM Staff Report Asset Allocation Policy 2026
3-AIFM 2026-2027 Asset Allocation Resolution
4-Exhibit A (Segal Marco Advisors, 2026 Asset Allocation Review)
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Description/Analysis
IssueDetail
Issue Detail: The Administration, Investment and Fiscal Management Board (Board) has adopted policies governing the investment of funds held in SCERS which are contained in an Investment Policy document. Pursuant to the Investment Policy, the Board shall annually review and adopt an Asset Allocation Policy for the next fiscal year. Investment staff herein proposes an Asset Allocation Policy setting forth an asset mix for the SCERS portfolio for FY2026/27
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PolicyConsiderations
Policy Considerations: The establishment of an asset allocation policy is a key tool for the Board to set the SCERS portfolio’s overall risk and return characteristics. Pursuant to City Charter section 383 and the System’s Investment Policy, the overarching standard governing the investment and management of the System’s funds is the “prudent person” standard as described in the Probate Code section 16040. The proposed Asset Allocation Policy recommendations are consistent with that standard.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: The proposed action is not subject to the California Environmental Quality Act (CEQA) because it is not a “project” as defined in Section 15378 of the CEQA Guidelines.
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Sustainability
Sustainability: None.
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Commission/Committee Action
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation: The prudent and transparent management of funds held by SCERS on behalf of the beneficiaries of the System is enhanced by the adoption of an Asset Allocation Policy setting forth the parameters under which such funds are invested.
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FinancialConsiderations
Financial Considerations: None. The investment of SCERS funds is within the exclusive purview of the Board. The System, acting through the Board, is responsible for all costs in implementing the SCERS investment program.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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