The Core Fund is the largest of the two trust funds that make up the Wisconsin Retirement System (WRS). Its name was changed from Fixed Fund in 2006. This fund consists of retirement contributions made by, and on behalf of, participants in the WRS and investment earnings on those contributions. All participants have at least half, if not all, of their retirement contributions in the Core Fund. Some participants may have elected to have half of their retirement contributions made into the Variable Fund.
The basic objective of the Core Fund is to earn an optimum long-term return while taking acceptable risk. The Core Fund has a significant amount of stocks, but also invests in other assets such as bonds, real estate and private equity. It is considered a fully diversified, balanced fund invested for the long-term needs of the retirement system.
Diversification allows for more consistent performance under a wide range of economic conditions. In addition, the impact of the Core Fund returns are smoothed over five years.
2021 Core Fund Asset Allocation Targets
Totals exceed 100% due to SWIB's overall leverage of Core Fund assets. SWIB's actual asset allocation may vary up to +/- 6% from the targets listed. Click here for more information about SWIB's investment guidelines.
The effect of investment returns on employee accounts and benefits for retirees differs between the Variable and Core Funds. More information comparing the performance and impact of both funds on participants since 1983 is available. (PDF)