The Employes’ Retirement System of the City of Milwaukee (CMERS) provides defined benefit pension, disability, and death benefits to employees of the City of Milwaukee, Wisconsin. Managing approximately $6 billion in assets, CMERS is one of the larger municipal pension systems in the Midwest. The system is governed by the Annuity and Pension Board and covers both general and safety employees of the city.
Investment Strategy
CMERS maintains a diversified investment portfolio across domestic and international equities, fixed income, real estate, and alternative investments. The Annuity and Pension Board sets asset allocation policy based on actuarial analyses, liability projections, and capital market assumptions. The fund’s investment objective is to generate long-term returns sufficient to meet pension obligations while managing downside risk and maintaining liquidity for benefit payments. CMERS utilizes external investment managers across asset classes, with oversight from internal staff and external investment consultants. The fund’s investment approach emphasizes broad diversification and disciplined portfolio construction across market cycles.
Private Markets Approach
CMERS allocates approximately 12% of its portfolio to alternative investments, including private equity and real estate. The private equity program includes commitments to buyout, growth equity, and diversified strategies managed by established institutional managers. CMERS has built its alternatives program over time, maintaining diversification across vintage years, strategies, and geographies. The real estate allocation encompasses core and value-add strategies through commingled fund vehicles. The Annuity and Pension Board evaluates alternative investment opportunities through a rigorous due diligence process, with emphasis on manager track record, organizational stability, fee structures, and alignment of interest. The fund publishes detailed financial reports that include information on investment allocations and performance.
Frequently Asked Questions
What is the Employes' Retirement System of the City of Milwaukee?
CMERS is a defined benefit pension fund providing retirement, disability, and death benefits to employees of the City of Milwaukee, Wisconsin. The fund manages approximately $6 billion in assets and covers general and safety employees.
How does CMERS invest its portfolio?
CMERS maintains a diversified portfolio across equities, fixed income, real estate, and alternatives. Approximately 12% of assets are allocated to alternative investments including private equity and real estate. The Annuity and Pension Board governs investment policy.
Who governs CMERS?
CMERS is governed by the Annuity and Pension Board, which consists of elected member representatives, mayoral appointees, and the City Comptroller. The board sets investment policy and oversees the fund's administration.
