WRS News Online

New Technology Puts SWIB at Industry Forefront

The State of Wisconsin Investment Board has long been considered a public pension fund leader for its strong management of the Wisconsin Retirement System trust funds. SWIB is once again leading the way among public pension funds by implementing new technology that supports a move toward in-house investment management across multiple investment strategies.

BNY Mellon, a global leader in investment management and investment services, and its Eagle Investment Systems affiliate are supporting SWIB's investment and data management needs through the implementation of BNY Mellon's OnCore technology. The system, which is part of SWIB's larger implementation of a new portfolio management system, gives SWIB the support it needs to manage risk and performance across multiple asset classes by giving detailed analysis on how different risks interact with each other. The investment information on risk and performance generated daily will help SWIB better manage investment strategies--particularly those managed internally. In an effort to generate solid returns and keep costs low, SWIB has moved from managing 21% of our assets internally in 2007 to 65% of $104 billion in total assets today. Implementing the new technology provides critical support to SWIB's internal management efforts.

Although some parts of SWIB's new technology system are being used by other public pension funds, it is the comprehensive program integrating data and technology that puts SWIB at the industry forefront. Only a few of the largest money managers in the country have implemented a program of this magnitude.

As a result of the new technology, SWIB is moving toward managing the complete set of investment information as a strategic asset. That will allow SWIB to implement more innovative strategies that ultimately will benefit WRS members.

"New technology is essential for managing the sophisticated investment strategies we are implementing and for managing risk at a more nuanced level than it has ever been before," SWIB Executive Director Michael Williamson said. "We are moving from siloed investment technology to an asset class and risk aggregated model. Because of the unique design of Wisconsin's public pension system, which shares risk and reward with its participants, managing risk is an essential part of our strategy."

Since 1991, BNY Mellon and Eagle have provided SWIB with a wide range of investment and integrated data management services and they continue to be a strategic partner.