State of Wisconsin Investment Board (SWIB) is to invest in mortgage-backed securities (MBS) for the first time.
The pension fund plans to allocate 2% of its $104bn (鈧�93.4bn) of assets, according to a board meeting report, meaning it could have just over $2bn to invest in the asset class.
SWIB will invest directly in MBS issued by Fannie Mae, Freddie Mac and Ginnie Mae that 鈥渨ere not part of the sub-prime contagion of the global financial crisis and have consistent performance over time, including in 2008鈥�.
The new investments will form part of SWIB鈥檚 public fixed income portfolio and will be funded by decreasing the excess treasuries target from 3.9% to 1.9%.
SWIB said it had 鈥渘o exposure and believes there is good opportunity to take active risk to produce alpha鈥�.
The pension fund fund also announced it had committed $30m to invest in value-add industrial assets with Carson Companies. SWIB has been pursuing joint ventures with the industrial real estate specialist for several years.
SWIB is also considering committing $100m to an unnamed closed-ended US data-centre fund and investing $109m in a joint venture focused on mixed-use assets. It is also considering allocating $84m to real estate debt separate accounts.
