Legislation Details

File #: 2026-00740    Version: 1
Type: Discussion Item Status: Agenda Ready
File created: 3/6/2026 In control: Administration, Investment, & Fiscal Management Board
On agenda: 5/21/2026 Final action:
Title: Sacramento City Employees' Retirement System (SCERS or System) Fiscal Year (FY) 2026/27 Asset Allocation Policy
Attachments: 1. 2026-00740 STAFF REPORT
Date Ver.Action ByActionResultAction DetailsMeeting DetailsVideo
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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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