Board approves IPS change to create multisector bond category

The San Jose Office of Retirement Services board approved a change to the investment policy statement that consolidates previously separate bond subcategories—investment grade, high yield and emerging market bonds—into a single “multisector bonds” category while preserving the board’s target weights.

Staff explained the benchmark approach as a dynamically weighted blend: the benchmark weights update only when the board approves a strategic asset allocation change, while staff retain discretion to implement tactical overweights or underweights within the multisector bucket. A trustee asked whether the change would alter the benchmark; staff clarified the dynamic benchmark would only change when the board changes strategic targets.

A motion to approve the IPS amendment (referenced in the agenda as a resolution to memorialize the change) was moved, seconded and passed by voice vote with no opposition. The board discussed implementation and reporting obligations for the new category and confirmed an effective date of July 1, 2026.

Resolution reference: board materials cite a resolution number associated with the IPS update.

The board’s action gives staff greater implementation flexibility within the bond sleeve while retaining board control over policy weights and benchmarks.