The State of Wisconsin Investment Board (SWIB) invests assets for the Wisconsin Retirement System (WRS) that are held in the Core Retirement Investment Trust Fund (Core Fund) and the Variable Retirement Investment Trust Fund (Variable Fund). Together, these funds are known as the Retirement Funds.
We provided unmodified opinions on the financial statements and related notes of the Retirement Funds investment activity as of and for the year ended December 31, 2025. These financial statements report the investments and the investment activity of the WRS. Our unmodified opinions are included in SWIB’s 2025 Retirement Funds Annual Report. We conducted the financial audit by auditing SWIB’s financial statements of the Retirement Funds investment activity in accordance with applicable government auditing standards, issuing our auditor’s opinions, reviewing internal controls, assessing compliance with certain Wisconsin Statutes and investment guidelines, and issuing our auditor’s report on internal control and compliance.
In 2025, the Core Fund made up 94.2 percent of total investment assets of the Retirement Funds
Total investment assets in the Core Fund were $213.4 billion as of December 31, 2025. The Core Fund investments include a distinct mix of investment types, such as public equities, fixed income, and private fund investments.
Total investment assets in the Variable Fund were $13.2 billion as of December 31, 2025. The Variable Fund assets are primarily made up of public equities.
Net investment position is a measure of overall financial condition. The Core Fund net investment position increased from $122.5 billion in 2023 to $128.3 billion in 2024, and was $141.8 billion in 2025. The Core Fund reported net investment income of $10.3 billion in 2024 and $18.1 billion in 2025, or an increase of 75.6 percent. The reported one-year investment return, net of all fees and costs, increased from 8.5 percent in 2024 to 14.4 percent in 2025 and exceeded the benchmark of 13.6 percent. The Core Fund investment return in 2025 is attributed to positive investment returns across all investment types.
As noted, net investment position is a measure of overall financial condition. The Variable Fund net investment position increased from $9.8 billion in 2023 to $11.1 billion in 2024, and was $12.8 billion in 2025. The Variable Fund reported net investment income of $1.8 billion in 2024 and $2.4 billion in 2025. The reported one-year investment return, net of all fees and costs, increased from 18.7 percent in 2024 to 22.0 percent in 2025 and exceeded the benchmark of 21.8 percent. The Variable Fund investment return in 2025 is attributed to positive investment returns.
Total assets managed, which are the total investment assets less related investment liabilities, are reported by SWIB in quarterly reports, which are required to be submitted to the Legislature under s. 25.17 (13m), Wis. Stats. Total assets managed were $147.3 billion in 2021, $122.9 billion in 2022, $132.4 billion in 2023, $139.5 billion in 2024, and $154.6 billion in 2025. The percentage of assets managed internally has decreased from 49.0 percent in 2021 to 46.8 percent in 2025. Between December 31, 2021, and December 31, 2025, the percentage of internally managed assets decreased to a low of 37.9 percent as of December 31, 2022, before increasing to 38.1 percent as of December 31, 2023, and to 39.1 percent as of December 31, 2024. SWIB staff attributed the increase in internal management of assets as of December 31, 2025, to the discontinuation of certain externally managed investments in favor of internal management.
Management fees are charged by external investment managers. Management fees typically include a base fee and a performance fee, which is typically calculated based on investment returns. The performance fees fluctuate each year based on the performance of the underlying investment. External investment management fees increased from $1.2 billion in 2024 to $1.4 billion in 2025.
