State of Wisconsin Investment Board's $86.5 billion diversified core fund's investments returned 13.5% for 2013, outperforming its customized benchmark's 12.9% return, according to a SWIB statement.
Its $7.2 billion variable fund — allocated 70% to domestic equity and 30% to international equity — returned 29% for the same period, surpassing the 28% return of its customized benchmark.
The two funds make up the Wisconsin Retirement System's assets, which are among the total $101.3 billion SWIB oversees.
The core fund is split about 25% to domestic equity, 25% to international equities and the rest to fixed income, real estate and private equity.
“These strong returns generated by SWIB, coupled with the fact that all of the losses from the 2008 financial crisis have been fully recognized, should mean a pay increase for annuitants in the spring of 2014,” Robert J. Conlin, secretary of the state Department of Employee Trust Funds, said in the statement, released Monday. “It will also mean a reduction in contribution rates in 2015.” The department determines contributions and administers the benefit programs for the Wisconsin Retirement System.
Returns are preliminary and assets are as of Dec. 31.
As of 2012, 18% of the Wisconsin Retirement System's members voluntarily participate in the variable fund, electing to put part of their contributions in it instead of all their contributions in the core fund.
Vicki Hearing, SWIB public information officer, couldn't be reached for further information.