Wisconsin Considers Cutting Equity Allocation for More Private Equity, Debt

The State of Wisconsin Investment Board (SWIB) is considering changes to its target allocations, reducing public equity while adding private equity and debt.

According to materials for its upcoming October 15 meeting, consultant NEPC is recommending the pension reduce public equity targets from the current 40% to 38%, while private equity/debt will receive an increase from 18% to 20%.

Other asset classes saw no changes in target, with fixed income remaining at 27% and TIPS at 19% for public market allocations, while real estate would maintain an 8% target under private markets allocation.

Per SWIB, its private equity/debt programs outperformed the public equity markets by 5.7% through the 10-year period ending on June 30, 2023. The pension also projects a baseline of nearly 35% for private investment allocations over the next decade in its long-term pacing plan.

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