The $2.7 billion Milwaukee Employees' Retirement System is shifting assets, part of a broad restructuring that increases its equity exposure. Patrick J. Cronin, financial manager, said the fund's equity ceiling has jumped to 70% from 40%; its target allocation is 60% equity, 35% fixed income and 5% real estate.
Milwaukee is close to hiring an enhanced value stock index manager to run $400 million, and an active large-cap value manager to run $150 million. The two new hires will be funded by reducing an S&P 500 index fund run by Northern Trust.
Next up will be a search for a small-cap value manager to run about $100 million, and a passive fixed-income manager to run about $300 million, Mr. Cronin said. He noted the fixed-income allocation could be for less, depending on how quickly the system increases its equity allocations. Asset Strategy Consulting is assisting the fund.