Wisconsin State Investment Board’s $76.7 billion diversified core fund returned 22.9% for the fiscal year ended June 30, its highest fiscal year return in 25 years, according to Vicki Hearing, public information officer for the Madison-based board.
The return outperformed the customized benchmark’s 22.1% return, according to a statement from the board.
SWIB’s $5.8 billion variable fund, allocated exclusively to domestic and international equity, returned 32.1% for the fiscal year, outperforming the 31.7% return of its customized benchmark, Ms. Hearing said in an e-mail.
The core fund return was its best since its 24.7% return for the fiscal year ended June 30, 1986, Ms. Hearing said in the email.
“Returns were strong for a number of asset classes, including total U.S. equities, which gained 31.8% for the year,” the SWIB statement said.
David Villa, chief investment officer, said in the statement, “Security selection, sector allocations and bond management within the public markets added the largest portion to the excess return.”
Boosting the portion of the Wisconsin Retirement System’s $82.5 billion in assets “managed by SWIB staff to 53% is an important part of our success.”
SWIB oversees a total $87.7 billion.
“As a result, we have had more control over rebalancing and lowered overall cost,” Mr. Villa said in the statement. “It has also provided new opportunities for investment strategies. We are pleased to have completed a successful year, but recognize there are major challenges for the financial markets and the economy in general going forward.”
In the previous fiscal year, the core fund returned 12.3%, outperforming its customized benchmark’s 12.1% return, and the variable fund returned 15.6%, outpacing the 15.3% return of its customized benchmark.
Asset valuations are as of June 30.
