Over the last several years, commercial real estate has seen its share of challenges. From a global pandemic to rising interest rates and changes in trade policies, investors in commercial real estate have had to deal with sometimes extreme market volatility. Despite these challenges, commercial real estate remains an important part of a thriving U.S. economy and the investment strategy SWIB has implemented for the Wisconsin Retirement System (WRS). SWIB's real estate portfolio helps diversify the Core Trust Fund and has generated an impressive track record of investment performance which has greatly benefited the WRS, helping keep it fully funded and well-positioned to deliver on its promise to over 692,000 participants.

In this episode of The SWIB Podcast, we look at how SWIB's real estate portfolio plays an important part in SWIB's asset allocation. We talk to Jason Rothenberg, SWIB’s head of real estate, about some of the challenges facing SWIB’s real estate portfolio, what trends are impacting how institutional investors view the real estate market, and what steps SWIB’s real estate team has taken to overcome the market volatility.

Each quarter, hear from SWIB staff about the economy, the markets, and how the Wisconsin Retirement System trust funds are impacted. Hear how SWIB is working to help the Wisconsin Retirement System remain among the nation’s most resilient pension funds – growing and protecting participants’ benefits and giving them peace of mind to focus on work, life, and the future.

As part of its sophisticated and diverse investment strategy, the State of Wisconsin Investment Board makes investments in companies and funds across the country and around the world as part of a disciplined, prudent and innovative approach to market opportunities that ultimately benefit the Wisconsin Retirement System. But did you know that part of that strategy includes making investments right here in Wisconsin? Through its two dedicated portfolios that focus on Wisconsin, SWIB’s private debt program and Wisconsin venture capital portfolio have invested in opportunities that both provide positive investment returns for the WRS and enhance economic growth in the state.

In this episode of The SWIB Podcast, we welcome back SWIB Portfolio Manager Chris Prestigiacomo. Chris talks about the investments SWIB’s private debt and venture capital portfolios hold in Wisconsin companies, the positive impact the two portfolios have had on the WRS trust funds as well as the state's economy, and what the current private debt and venture capital ecosystems look like in Wisconsin.

The financial markets in 2024 were shaped by geopolitical conflicts, a presidential election, the Federal Reserve initiating an interest rate cutting cycle, a continued bull stock market, and a U.S. economy that remained relatively strong. Many of the themes that dominated the past year are likely to continue shaping the financial markets in the year ahead. What does it all mean for SWIB and the Wisconsin Retirement System (WRS)?

In this episode of The SWIB Podcast, we welcome back SWIB Executive Director and Chief Investment Officer Edwin Denson. Edwin provides insight on some of the events and trends that impacted the financial markets in 2024, the performance of the WRS trust funds, and what we might expect in the year ahead.

When investing in the stock market, there is a list of companies that will be familiar to even novice investors. Apple, Microsoft, Alphabet, Amazon, and Walmart are just a few of the companies that grab the attention of investors and make headlines. These are large capitalization, or large cap, companies. These companies typically have a market capitalization over $15 billion. Although aggressive growth may be in the rear-view mirror for these companies, they typically offer investors stability. But, when building out a successful diversified portfolio, investors cannot overlook small capitalization or small cap companies. These are companies that have a greater chance for growth and, in some cases, have the potential to become the next large cap stocks of the future.

What does SWIB’s small cap portfolio look like? How does it fit into SWIB’s investment strategy for the Wisconsin Retirement System, or WRS? Joy Mukherjee, lead portfolio manager of SWIB’s small cap equity strategy, explains the difference between large cap and small cap investments, describes some of the common misconceptions of small cap investments, and talks about how SWIB’s portfolio has capitalized on opportunities that have had a positive impact on the WRS trust funds.

Multi-strategy funds have become more popular over the years. But what exactly is a multi- strategy fund and how does SWIB’s implementation of a multi-strategy portfolio benefit the overall investment strategy for the Wisconsin Retirement System? In this episode of The SWIB Podcast, SWIB Senior Portfolio Manager Chase Nicholson explains what a multi-strategy portfolio is, why SWIB has the portfolio, and how that portfolio fits into the long-term investment strategy for the WRS. 

Despite interest rates that remain high and inflation that is still above the Federal Reserve’s 2% target, the U.S. stock market continues a bull run, unemployment remains relatively low, and wage growth has been steady. So, what does all that mean for investors and what will the second half of the year bring as geopolitical issues continue to grab headlines and we head into a November presidential election? In this episode of The SWIB Podcast, SWIB’s Head Economist and Asset and Risk Allocation Chief Investment Officer Todd Mattina talks about what all these headline grabbing issues mean for investors, the economy, and the Wisconsin Retirement System (WRS). Todd will share his thoughts on the first half of 2024 and his perspective on what the economic outlook is for the remainder of the year.

SWIB has implemented a diverse and sophisticated investment strategy for the Wisconsin Retirement System, or WRS. The Core Trust Fund, the larger of the two WRS trust funds, holds investments in public equities, fixed income, real estate, and private markets. That investment strategy also includes a mix of active and passive strategies.

In this episode of the SWIB Podcast, learn more about the role passive strategies like synthetic replication, passive exposure management, and leverage implementation have in helping keep the WRS fully funded. Find out how SWIB’s use of securities finance, collateral optimization, and liquidity management benefit the WRS trust funds. Finally, hear how SWIB’s innovative spirit played an important role in the founding of the Global Peer Financing Association and how the association has helped SWIB engage in a variety of securities finance activities and promote best practices and knowledge sharing with peers across the world.

Investments in the private markets is one aspect of SWIB’s diversified investment portfolio. But there are many ways to invest in the private markets. One approach that has been gathering momentum in the past decade is co-investment. In a private market context, coinvesting involves buying equity or debt in private companies alongside a private equity or private credit fund. What are the benefits of these investments and how do they help the Core Trust Fund? How has SWIB built and grown its co-investment portfolio? And what is the outlook for co-investments going forward?

In this episode of The SWIB Podcast, Chris Eckerman and Kirk Wolff of SWIB’s Private Equity and Co-Investment team answer those questions as we discuss private equity co-investments and learn more about how the Investment Board was an early adopter of building out an internal co-investment program. 

Yogi Berra once famously said, “It ain’t over till it’s over.” That was certainly true for financial markets in 2023. Just when it looked like many of the same issues that investors faced in 2022 would hold down returns, 2023 finished strong. Despite the challenges of the past year, the State of Wisconsin Investment Board remained committed to its long-term investment strategy that aims to keep annuity adjustments and contribution rates stable and deliver the benefits promised to over 675,000 Wisconsin Retirement System participants.

In this episode of The SWIB Podcast, SWIB Executive Director and Chief Investment Officer Edwin Denson talks about the positive performance the WRS trust funds turned in for 2023 and what that means for annuity adjustments for the system’s retirees and contribution rates for active employees and their employers. Edwin discusses how he and his team navigated the unpredictable financial markets, what we might expect in the year ahead, and how SWIB is working to keep itself positioned as a leading global investor.