Third Quarter Investment Update
The City of Milwaukee Pension Fund had a return of 2.7%, net of fees, in the third quarter of 2018. This outperformed the Fund’s blended benchmark by 0.3%. Third quarter GDP growth in the U.S. came in at 3.5%, marking the sixth consecutive quarter of growth greater than 2.0%. Once again, this supported public equity markets, and the return for the Fund’s public equity allocation was 3.8%, net of fees. The prospect of future interest rate increases continued to weigh on fixed income markets, but the Fund’s managers were able to generate some nice outperformance, with a return of 0.7%, net of fees, that outperformed the benchmark by 0.6%. The Fund’s absolute return asset class performed well, with a return of 2.0%, net of fees, as did Private Equity, with a return of 5.0%, net of fees. The Fund’s real estate portfolio was up 2.8%, net of fees, in second quarter of 2018, which is the most recent quarterly data available. The market value of the Fund on September 30, 2018 totaled approximately $5.42 billion, and the year-to-date return was 4.5%, net of fees.
Board Election Results
Thank you to all who participated in the recent board election for active members. The results are as follows;
- James Campbell received the most votes, 1,105. His term is set to expire on December 31, 2022.
- Matthew Bell came in second, collecting 939 votes. His term is set to expire on December 31, 2021.
- Carmelo Patti took third, garnering 811 votes. His term is set to expire on December 31, 2020.
- The other candidates and their totals were:
- Timothy M. Helling - 771 votes.
- Molly King - 753 votes.
- Thomas J. Bell - 750 votes.
- Kathy Brengosz - 740 votes.
New Medicare Cards in 2018
CMS, the authority that manages Medicare, has begun issuing replacement Medicare cards and is anticipating the replacement of all cards over the next year. This new card will replace the existing Medicare cards you have, and will include a new identity number called the Medicare Beneficiary Identifier (MBI). The MBI will replace the HICN that is currently used (that looks a lot like your social security number). More information about this can be found on CMS's website. To learn more about when your card will arrive, go to Medicare.gov/NewCard. Your benefits will not be impacted with this change.
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Other recent news can be found on the most recent newsletter.
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