Cost discipline is a cornerstone of SWIB’s investment approach. As a public pension, SWIB operates at a significantly lower cost than most for-profit asset managers—while managing a highly sophisticated, diversified global portfolio.

 

SWIB achieves this by managing costs deliberately and transparently. Each year, SWIB conducts a comprehensive, line-by-line review of its operating budget to ensure every dollar supports its investment objectives. Progress against that budget is continuously monitored and reported each quarter to SWIB's Board of Trustees and the state legislature, reinforcing accountability. In addition, SWIB engages CEM Benchmarking, an independent cost consultant, to perform an annual peer analysis, benchmarking SWIB’s expenses against comparable institutional investors to ensure its cost structure remains competitive and appropriate.

 

Importantly, costs are never viewed in isolation. SWIB’s mission is not to minimize costs, but to maximize returns for beneficiaries. The true measure of cost effectiveness is net performance—returns after all costs and expenses—over full market cycles.

 

Strategic investments in talented professionals, robust risk management, high-quality data, and advanced technology enable deeper analysis, better decision-making, and stronger oversight of complex portfolios. These investments support higher net returns and improved outcomes for the WRS over time.

 

In short, SWIB is committed to spending prudently, measuring rigorously, and investing where it adds value. By balancing cost control with performance, SWIB works to deliver strong, sustainable results for current and future WRS beneficiaries.