The State of Wisconsin Investment Board (SWIB), created in 1951, is responsible for managing the assets of the Wisconsin Retirement System (WRS), the State Investment Fund (SIF) and other state trust funds. SWIB managed more than $99 billion in assets as at 31 December 2015. The core fund, which is the largest of the funds managed by the SWIB, had the following asset allocation as at December 2016: equities 51 per cent, fixed income 29 per cent, inflation-sensitive 12 per cent, real estate 7 per cent, private equity 8 per cent, multi-asset 1 per cent. SWIB’s investment strategy also includes managing a majority of WRS assets internally. SWIB managed 64 per cent of WRS assets internally as at 31 December 2016.
In the space of three months the State of Wisconsin Investment Board has moved its portfolio from “defensive” to “offensive” as it “leans into the opportunities” presented by the coronavirus crisis. CIO and executive director David Villa, and deputy, Rochelle Klaskin spoke to Amanda White about the portfolio and how the large internal team is managing remotely.
Amanda WhiteApril 22, 2020
Ensuring a portfolio has enough liquidity to rebalance back to the long-term strategic asset allocation is the most critical preparation investors can do ahead of any crisis, according to Mark Wiseman, who said this current environment could be the "opportunity of a generation".
Amanda WhiteApril 3, 2020
David Villa, CIO of the $110 billion State of Wisconsin Investment Board is worried about the outlook for returns. As a result he’s significantly underweight sovereign bonds in favour of cash. But he’s also positioning the organisation to do better analytics for more complicated portfolios, another result of a low return environment. The fund is working on at least five data and technology projects and has hired a chief technology and operations officer.
Amanda WhiteOctober 5, 2019
A knowledge exchange between the State of Wisconsin Investment Board and its manager, Parametric, has seen the fund become comfortable understanding the instruments involved to manage a chunk of its total levered allocation in-house.
Sarah RundellJune 12, 2019