Wisconsin Retirement System returns 8.5% for fiscal year

State of Wisconsin Investment Board, Madison, announced a preliminary net return of 8.5% for the fiscal year ended Dec. 31 for the Wisconsin Retirement System's $128 billion core trust fund.

For the five years ended Dec. 31, the core trust fund returned a preliminary annualized net 7.2%.

Benchmark information was not provided, but the news release said all periods, including the 10 years and 20 years ended Dec. 31, exceeded the benchmarks as well as its 6.8% target return.

The core trust fund had returned a net 11.4% for the fiscal year ended Dec. 31, 2023.

Edwin Denson, SWIB's executive director and chief investment officer, said in a Jan. 22 news release that investors faced a range of challenges during the past year.

"Inflation continued to be an important story as the Federal Reserve grappled with when and how quickly to lower interest rates without prompting a reacceleration,” Denson said. “Global equity markets saw strong performance, even as geopolitical tensions and election uncertainty dominated headlines. Through it all, our disciplined investment strategy and focus on fundamentals delivered strong absolute returns, ensuring the WRS remains well-positioned to meet its commitments to participants."

The core trust fund's target allocation is 38% public equities, 27% public fixed income, 20% private equity/debt, 19% inflation-sensitive assets, 8% real estate and -12% leverage.

Actual allocation information as of Dec. 31 was not provided.