Milwaukee City Employes Retirement System is considering allocating 15% to 20% to alternative investments, including hedge funds, private equity, infrastructure and commodities, said CIO Tom Rick.
The only alternatives investment currently being made by the $5.2 billion fund is a 7% allocation to real estate. The funds other current allocation is 45% domestic equity, 20% international equity, and 28% fixed income.
Staff plans to present a strategic implementation plan to the systems investment committee Aug. 20.
The committee could make recommendations to the systems board on the size of the total allocation, the types of alternatives investments and funding sources, as well as recommendations on searches for managers and any specialty consultants.
The types of alternatives will drive where we get the funding, Mr. Rick said.
Mercer is assisting.