Diversity
is key to SWIB success
The Wisconsin Retirement System diversifies its assets in eight major
investment categories, according to the State of Wisconsin Investment
Board (SWIB). The asset mix is dependent upon the type of fund –
variable vs. fixed. Investment categories are:
- Domestic Equities: These primarily consist of common stock
held in U.S. companies.
- International Equities: Management of stocks traded on foreign
markets is divided between SWIB staff and outside specialists in these
markets.
- Domestic Bonds: These include U.S. government bonds and corporate
bonds purchased in public markets.
- Private Placements: SWIB makes long-term loans to companies
throughout the U.S.
- Global Bonds: SWIB staff manage a portfolio that invests
in U.S. government securities and in foreign bonds when returns from
oversees markets are expected to exceed domestic markets.
- Real Estate: SWIB invests in commercial real estate as a
sole direct owner, or in joint ventures, trusts and partnerships.
- Non traditional: This portfolio may invest opportunistically
across asset classes in either domestic or international markets.
- Cash: Temporary cash balances awaiting permanent investment
are invested in obligations of the U.S. government as well as high
quality commercial bank and corporate debt obligations.
SWIB’s investment objective is to produce the long-term asset
growth needed to meet the obligations to current and future retirees.
“We don’t try to be a market timer,” said Kenneth Johnson,
chief administrative officer of SWIB. “It’s too difficult
to do that.”
By state law, all of SWIB's investment decisions must be guided solely
by what is in the best interest of the WRS.
The agency’s professional investment staff and outside managers
make the day-to-day decisions on what to buy and sell. However, transactions
must be within the parameters determined by SWIB’s investment policy
established by its Board of Trustees.
Resources help you understand your retirement system
The Wisconsin Retirement System can seem complicated, said Julie Reneau,
communications director for the Employe Trust Funds Board. That’s
why ETF and the State of Wisconsin Investment Board (SWIB) offer user-friendly
publications and make tailored public appearances to different groups
throughout the state. “We want people to recognize we (SWIB and
ETF) are separate entities but that we need to work together to meet
our goals,” Reneau said.
- The ETF offers assistance and information via its Web site at http://badger.state.
wi6.us/agencies/etf. The site includes a calculator that can be
used to estimate retirement benefits.
- ETF also offers a Telephone Message Center, which provides recorded
answers – 24 hours a day – to the questions that participants
ask most. Reach the message center with your touch-tone phone by dialing
1-800-991-5540. Dial 264-6633 from Madison.
- To speak directly to a benefits specialist, call the Madison office
at (608) 266-3285 or TTY (608) 267-0676 or the Milwaukee office at
(414) 227-4294 between 7:45 a.m. and 4:30 p.m. Monday through Friday.
- For information about WRS investment performance, contact SWIB at
P.O. Box 7842, Madison, WI 53707 or call 1-800-424-7942. You can also
visit the SWIB Web site at http://badger.state.wi.us/
agencies/invbd.
Posted December 3, 1998
