Department of Employee Trust Funds - Hot Topic
March 28, 2006

Fixed Fund Changed to Core Fund

Due to a recent change in state law, the Wisconsin Retirement System’s (WRS) Fixed Trust Fund will become known as the Core Fund on April 5, 2006. The Department of Employee Trust Funds (ETF), which sought the name change, believes the new name will reduce confusion among participants because it better reflects the nature of the fund in the WRS investment mix.

At its inception, the Fixed Trust Fund was invested primarily in fixed income or bond investments. In order to maximize returns, however, the fund’s assets have, over time, been invested in other types of investments. Today, about 60% of the fund’s assets are held in a wider variety of stocks. The fund’s overall approach – to seek long-term growth through fully diversified, balanced investments – has not changed. Because the Fixed Trust Fund makes up over 90% of the WRS assets and serves as the “core” of most participants’ pensions, ETF believes the new name more accurately describes the fund’s purpose and diversified nature.