Updated Feb. 6, 2014
City of Milwaukee Employes’ Retirement System named as finalists Allianz Global Investors, BlackRock, GMO, Morgan Stanley Investment Management, Newton Capital Management and Standard Life Investments to manage $50 million to $100 million in an absolute-return/diversified strategy, John Barmore, chairman, said in an eMorgan Stanleyock, GMO, Morgan Stanley Investment Management, Newton Capital Management and Standard Life Investments to manage $50 million to $100 million in an absolute-return/diversified strategy, John Barmore, chairman, said in an eBlackRock, GMO, Morgan Stanley Investment Management, Newton Capital Management and Standard Life Investments to manage $50 million to $100 million in an absolute-return/diversified strategy, John Barmore, chairman, said in an e-mail.
The $4.8 billion pension fund is considering absolute-return strategies, such as long/short or market-neutral equity; global tactical asset allocation; and extension strategies that have a low beta compared with equities or fixed income.
The selection of finalists is the result of shortlist search conducted by Callan Associates, the pension fund’s investment consultant.
The investment committee expects to recommend hiring one of the managers on Friday.
The search represents the initial phase of the implementation of the pension fund’s 5% allocation to hedge funds and absolute-return strategies approved last spring. Funding will come from reducing equity and fixed-income allocations.