Investment management of the WRS generated more than $4.1 billion of net outperformance over the last five years, according to the latest report by SWIB.
These strong investment returns, through SWIB’s cost-effective internal management, has helped the WRS remain among the best-funded public pension systems in the country.
Over the last 20 years, SWIB’s active management and diversified holdings generated $15 billion for the Core Trust Fund, above what it would have earned by simply investing in a passive portfolio consisting of 60% global equities and 40% domestic bonds.
In 2024, the Core Fund, the larger of the two WRS Trust Funds with more than $128 billion in assets, ended the year with a one-year net return of 8.5% and a five-year net return of 7.2%.
Fifteen of 17 active investment strategies outperformed their benchmarks, contributing to a one-year excess return of 1.1% (the most since 2009) and a five-year excess return of 0.7%.
The Core Fund’s 10-year and 20-year returns, net of external manager fees, continue to exceed its target return of 6.8%, with SWIB outperforming the Core Fund benchmark for these periods.
“The WRS Trust Funds delivered another strong performance year, driven by an investment strategy designed to withstand financial challenges and provide participants with the retirement security they deserve,” said SWIB Executive Director/Chief Investment Officer Edwin Denson.
Denson added: “No matter what the future holds, I am confident the WRS will remain among the nation’s most resilient pension funds — growing and protecting participants’ benefits, giving them peace of mind to focus on their work, life, and future.”
In his statement, SWIB Board of Trustees Chair Clyde Tinnen said, “I am incredibly proud of the work SWIB staff does on behalf of over 692,000 WRS members.”
“These results reaffirm the value of highly skilled employees executing a sophisticated investment program,” he added.