The City of Milwaukee Pension Fund earned a return of -2.9%, net of fees, in 2018. This return outperformed the Fund’s blended benchmark by 0.4%. U.S. GDP growth was positive each quarter in 2018, and the unemployment rate fell to 3.9% by year-end. Although the U.S. economy remained steady in 2018, continued worries about trade wars and the government shutdown caused weakness in equity markets in the fourth quarter. The market worries led to negative returns in traditional asset classes. The Fund’s public equity allocation was down -9.9%, and fixed income was down -0.4%, both net of fees. Alternative asset classes fared better, with Absolute Return gaining 1.4%, net of fees, and Private Equity reporting returns of 21.5%, net of fees. Over the prior twelve months ending September 2018, the ERS’ real estate portfolio had a return of 9.0%, net of fees, which is the most recent time period for which data is available. The market value of the Fund on December 31, 2018, totaled approximately $4.95 billion.