Benchmarks
Benchmarks are used to measure the performance of investment portfolios
and the Core and Variable Funds. They are set by the objectives of the portfolio and the types of
investments that can be made.
Typically, benchmarks include a widely used market index (an example
would be the
S&P 500 or Russell 3000 Index), or a combination of several indexes based on the types of assets.
The performance of the benchmark changes based on the performance of
the investments held by the index.
SWIB's benchmarks are listed in the
Investment Guidelines. The Core Fund benchmark is mainly a composite of several
market indexes
including the Russell 3000 for domestic equities, the Morgan Stanley World Index ex US plus
emerging markets for international equities, a composite of fixed income
indexes, the NCREIF (National Council of Real Estate Investment Fiduciaries) for
real estate, a
composite of private equity/debt .
The Variable Fund includes the Russell 3000
and Morgan Stanley World Index ex US plus emerging markets.