State of Wisconsin Investment Board (SWIB) has outperformed its real estate investment benchmark for two years in a row.
SWIB, which runs the $108.8bn (鈧�87.4bn) Wisconsin Retirement Systems, told 91传媒在线 that it produced a 9.6% return on its real estate portfolio in 2017, outperforming its benchmark, the NFI-ODCE Index, which returned 7.66%, by 194bps.
In 2016, SWIB produced a 10.8% real estate return, just above its benchmark of 10.1%.
Michael Williamson, SWIB executive director, said the investment strategy was designed to weather a variety of economic environments.
鈥淥ur strategy continues to deliver the returns needed to keep the retirement system strong over the long term,鈥� he said.
SWIB invests in real estate on behalf of the $100.6bn Core Fund, the largest of the two trust funds that make up Wisconsin Retirement Systems. The Core Fund ended 2017 with an overall return 16.2%, outperforming its benchmark.
Its real estate portfoio was valued at $6.3bn at the end of November, representing 6.3% of assets.
SWIB also has unfunded commitments of $1.85bn, which if included takes it close to its 8% target real estate allocation.
This would still be within the range allowed for the asset class of 5% to 11%, according to the pension fund鈥檚 investment policy.
Earlier this year, 91传媒在线 reported that SWIB was planning to invest more capital in real estate in 2018.
