Edwin Denson

This document, the 2026 Goals, Strategies & Performance Report, outlines the strategic direction for the State of Wisconsin Investment Board (SWIB). The organization's mission is to be a trusted global investment entity that contributes to the strong financial future of its beneficiaries, with a vision to be an innovative, agile, and integrated organization that optimizes investment returns while meticulously managing risk and cost. Key strategic goals for 2026 include enhancing investment strategies to increase active returns, optimizing operations and technology infrastructure, and improving talent acquisition, retention, and management. The report also highlights past performance, a commitment to long-term investing, portfolio diversification, and robust risk management practices to ensure the sustainability of the Wisconsin Retirement System.

The committee meeting agenda includes an update on the LMBI Division and a review of Q4 2025 performance for LIRM and Multi-Strat portfolios. Additional items involve a transition update, an announcement of committee actions taken during a closed session regarding confidential investment strategies, a report from the Research Task Force, and a quarterly performance review. Furthermore, the committee will address the QIR Annual Certification Report, soft risk parameters, and future meeting topics.

This Investment Policy outlines the strategic objectives, philosophies, and directives for the management and oversight of the Wisconsin Retirement System (WRS) assets by the State of Wisconsin Investment Board (SWIB). The policy is structured around key areas including strategic asset allocation, rebalancing, active risk targeting, and comprehensive risk monitoring, performance benchmarking, and cost management. Its primary goals are to maximize long-term returns within prudent risk parameters, ensure sufficient funds for pension obligations, and maintain the stability of the WRS through diversification and a balanced approach to investment strategies. The 2026 recommendations adjust asset allocation targets to reduce volatility while maintaining strong long-term expected returns and increase passive investment flexibility.

The board meeting agenda included committee reports from the Audit and Finance, Compensation and Workforce Development, and Strategic Planning and Corporate Governance committees. The Board conducted the election of the Secretary and Assistant Secretary, established annual committee assignments, and reviewed proposed board meeting dates for 2027. Investment performance and market updates were presented, including the Q4 2025 Quarterly Investment Update and Callan Report. Governance updates were discussed, including amendments to investment policies and procedures. The meeting also included a closed session to consider proprietary investment strategies, compensation and performance evaluation data for specific employees, and legal strategies.

The board meeting focused on several key items, including committee reports covering audit and finance, compensation and workforce development, and strategic planning and corporate governance. The board conducted the election of the Secretary and Assistant Secretary and reviewed annual committee assignments. Discussions regarding investment performance included market updates for the fourth quarter of 2025, an analysis of the Core Trust Fund and Variable Trust Fund performance, and a review of the Callan Quarterly Report. Additionally, the board reviewed asset allocation recommendations for 2026, approved updates to the Investment Committee charter and guidelines, and reviewed governance updates. Matters regarding public fund investment strategies and employee compensation were addressed during a closed session.