Retirement board hears Wilshire report showing strong long‑term returns; funded ratio near 95%

Tom Toth of Wilshire Advisors opened the retirement board’s performance briefing by saying, “The portfolio at just over $36,000,000,000,” and highlighted a 10‑year annualized return of 8.3% and a funded ratio of roughly 95%. Wilshire said the fund outperformed policy in the fourth quarter and outpaced an interim transition benchmark in the quarter by roughly 50–74 basis points.

The presentation split total performance into asset allocation effects and manager selection. Wilshire said private equity and treasuries each contributed about 40 basis points to excess return over a five‑year window, while a negative manager‑selection effect (notably in private equity benchmarking) was a headwind of about 140 basis points over the same period. “Private equity added about 40 basis points,” the presentation stated, and selection was described as a principal source of the recent relative drag.

Commissioners pressed Wilshire on concentration in mega‑cap growth stocks and alternative benchmarking. Commissioner Thompson asked whether alternative indices should be considered; Toth said equal‑weight indices can be a useful analytic lens but cautioned that market‑cap weighting remains the standard policy benchmark. On questions about private‑market valuation mismatches and tracking error, Wilshire said staff is monitoring tracking error and that small differentials between the interim and strategic policy are expected as private assets reprice.

There were no public commenters on the performance item. The board adjourned the presentation after a brief Q&A and moved to the next agenda items.

The board received the presentation for information; no formal vote on policy changes occurred during this item.