Board members for the Milwaukee Employes' Retirement System are searching for a custodian, are likely to perform an active international equity search next year, and hired a fixed-income manager for $300 milliion, said Patrick Cronin, financial manager.
Board members for the $2.7 billion system expect to make a decision by the end of October on hiring a custodian, which will now include global custody, Mr. Cronin said. Contracts for the hiring are planned to be completed by year end, he said.
Global custody is being added because the board expects to add an active international equity component next year, he said. Milwaukee earlier this year added a $100 million allocation to a passive non-U.S. equities commingled fund managed by State Street Global Advisors, Boston.
Details on the new active equity allocation have not been worked out, he said.
Meanwhile, contracts were signed in late September in the re-hiring of Firstar Investment Research & Management Co., Milwaukee, which was selected to run a new $300 million enhanced index fixed-income allocation. FIRMCO ran the money previously in an immunized bond portfolio, which was closed.
FIRMCO beat out finalists Lincoln Capital Management Co., Chicago, and PanAgora Asset Management, Boston.
FIRMCO will use security and sector selection, while keeping duration neutral to the Lehman Aggregate Bond Index, to try to achieve market neutral returns, Mr. Cronin said.
Asset Strategy Consulting, Los Angeles, assists the fund with searches.