State of Wisconsin Investment Board's $87.6 billion diversified core fund's investments returned 1.4% in the fiscal year ended June 30, underperforming its customized benchmark return of 1.8%, said Chris Preisler, spokesman, in an e-mail.
The Madison-based fund's five- and 10-year annualized returns were 6.3% and 5.8%, respectively, outperforming its customized benchmarks of 6.1% and 5.6%, respectively.
As of June 30, the target and actual allocations of the core fund were both 51% public equities, 28% fixed income, 10% inflation-sensitive strategies, 8.2% private equity, 7.2% real estate, and 2.4% multiasset consolidation. The allocation is higher than 100% because of leverage, Mr. Preisler said.
The $6.7 billion variable fund, which is only invested in domestic and international equities, returned -1.5% in the fiscal year ended June 30, outperforming the customized benchmark of -1.6%. Five- and 10-year annualized returns were 8.4% and 5.9% respectively, compared with the customized benchmarks of 8.2% and 5.8%, respectively.
The two funds make up the Wisconsin Retirement System, the investments of which SWIB oversees.