Employes' Retirement System of the City of Milwaukee

The Investment Committee met to conduct interviews for a new core Fixed Income manager. Presentations were given by representatives from PPM America, Inc., Income Research + Management, Galliard Capital Management, LLC, and Baird Advisors regarding their investment philosophies, processes, and performance expectations. The Chief Investment Officer provided a performance update on the fund's market value, asset allocation, and de-risking efforts. The committee moved into a closed session to deliberate and subsequently selected and approved the engagement of a preferred Fixed Income manager.

The document is the Statement of Investment Policy for The Employes' Retirement System of the City of Milwaukee, updated in June 2026. It establishes the fund's asset allocation policy, including target ranges for public equity, fixed income, private real estate, private equity, and absolute return. It outlines the roles and responsibilities of the Investment Staff and Investment Consultant in manager oversight, portfolio adjustments, and policy development. Recent updates address changes to the Public Equity structure and an extension of the temporary maximum Fixed Income weight until March 31, 2027. The document also incorporates a first-quarter 2026 portfolio review detailing market commentary and performance analysis.

The board discussed the Chief Investment Officer's report on fund performance, the selection of a fixed income manager, and the 2027 City Budget request. It also processed retirements, death claims, and refunds, reviewed conference requests, and addressed pending legal opinions and litigation reports. Furthermore, the board recognized the service of a retiring trustee with a resolution and received reports on ERS projects and operational metrics.

The board discussed reports from the Chief Investment Officer and the Investment Committee, including an update on the Real Estate Investment Policy Statement and the public equity structure. Key agenda items included the approval of retirements, death claims, and refunds, the review of medical reports regarding disability applications, and a discussion on pending litigation and legal opinions. Additionally, the board addressed conference requests, personnel updates including the retirement of the Deputy Director, and various legislative and project inventory reports.

The board agenda included reports from the Chief Investment Officer and the Investment Committee, with a potential closed session to deliberate on the selection of fixed income managers. New business items encompassed the processing of retirements, death claims, and refunds, consideration of conference requests, approval of the draft 2027 city budget, and a resolution for a retiring trustee. Further discussions covered medical reports for disability applications, pending legal opinions, legislative reports, and a closed session regarding litigation strategy. Informational items included conference updates, class action income reports, administrative committee minutes, financial reports on bills and securities lending, and preliminary performance asset allocation data.