Having a strong internal management program provides a significant financial benefit to the WRS. SWIB’s Board of Trustees has committed to internal, active management. According to CEM Benchmarking, an independent provider of objective cost benchmarking for public pension plans, SWIB does more internal management of assets than other U.S. pension plans.
SWIB’s cost for internal active management is considerably lower than the cost of external active management. CEM’s most recent report found that for calendar year 2021 (the most recent data available), SWIB’s cost of management was 7.0 basis points or $91 million lower than the U.S. public pension fund average. (One basis point is equal to 0.01%, 1/100th of a %, or 1 cent for each $100.) Further, from 2012-2021, SWIB saved $903 million in costs when compared to peer pension plans.