The uncertainty of COVID-19 has had a major impact on global financial markets. The State of Wisconsin Investment Board is continuing to monitor, analyze, and respond to market conditions. Because we have prepared for remote operations, our investment and trading operations have continued as usual during this time.
Now more than ever, SWIB is committed to working hard on your behalf and to managing the Wisconsin Retirement System to help ensure the system remains strong.
It is important to remember that SWIB is a long-term investor. Although no investment strategy can prevent losses, our goal is to generate returns over the long-term. SWIB is positioning to take opportunities now and for the eventual market rebound. It is still early in the year. Governments around the globe are taking unprecedented steps to both contain the virus and help stabilize the economy. As many of our stakeholders know, market gains and losses for the Core Trust Fund are smoothed over five years. Last year’s gross return of 19.9% and SWIB’s highly diversified portfolio put us in a strong position to help weather this current downturn.
This is not the first time we have had to deal with stresses in the markets, and it will not be the last. These are unprecedented economic times that create uncertainty around what might happen next. Nevertheless, just as we did through previous market challenges, we will continue to adapt, work hard, monitor our investments, and take opportunities where we see them on behalf of the trust funds that we manage.