WRS Trust Funds
Core Fund
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. Click here for more information about SWIB's investment guidelines.
Variable Fund
The investment objective for the Variable Fund is to achieve returns equal to or above that of similar stock portfolios over a market cycle. If you are considering whether to pick the Variable Fund option, here is some information that should be helpful.
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Variable Fund is only invested in domestic and international stocks. These are the same stocks selected for the Core Fund.
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Variable Fund returns are not smoothed while Core Fund returns are.
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Participants in the Variable Fund are exposed to a higher degree of risk because of possible losses from unfavorable stock market performance in exchange for the possibility of greater long-run returns.
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It is possible for the Variable Fund portion of your benefit to decrease below the initial base amount you receive at retirement
RELATED INFORMATION
The effect of investment returns on employee accounts and benefits for retirees differs between the Variable and Core Funds. Click here for performance information.