The City of Milwaukee Pension Fund had a return of 1.7%, net of fees, in the second quarter of 2018. This outperformed the Fund’s blended benchmark by 1.1%. Economic indicators were strong, with second quarter U.S. GDP growth coming in at 4.1%, and the unemployment rate at 4.0%. This supported public equity markets, with the Fund’s public equity allocation gaining 1.3%, net of fees, outperforming its benchmark by 0.6%. The Federal Reserve increased its policy target for interest rates and reiterated plans for future increases, which weighed on fixed income markets. Despite this, the Fund’s fixed income asset class was up 0.3%, net of fees, outperforming its benchmark by 0.4%. The Fund’s alternative asset classes continued to perform well. Strong private equity reports came in, resulting in a 4.1% quarterly return. Absolute return was up 2.6%, net of fees, in the second quarter, and real estate was up 2.1%, net of fees, in the first quarter of 2018, which is the most recent quarterly data available. The market value of the Fund on June 30, 2018 totaled approximately $5.36 billion, and the year-to-date return was 1.7%, net of fees.