The Wisconsin State Investment Board made major changes to some of its largest equity investments in the first quarter, a period marked by the volatility caused by the coronavirus pandemic.
SWIB, as the board of directors knows, manages state trust funds which, at the end of 2019, totaled more than $ 128 billion, 91% of which is under the Wisconsin Retirement System.
(INTC) in the first quarter, and doubled its stake in the company
(UBER). He disclosed the transactions in a form filed with the Securities and Exchange Commission.
The Wisconsin Retirement System is the eighth largest American public pension fund, and in some ways among the best. A study by the Pew Charitable Trusts using 2017 data found that Wisconsin had the best funded state pension, with a funding ratio of 102.7%, which means it had 1 $ 03 in assets for $ 1 in liabilities. The average state was funded at only 69.1% and only seven other states had a funding ratio above 90%. At the end of 2018, the pension remained fully funded.
SWIB did not respond to a request for comment on its stock market transactions.
Apple shares fell 13.4% in the first quarter. In the second quarter, it offset this loss, with a rebound of 22.0%. In comparison, the
S&P 500 Index,
a measure of the overall market, gained 13.4% in the second quarter.
We noted that the iPhone manufacturer’s App Store saw a sharp increase in activity in April, while many parts of the world were locked to combat the spread of Covid-19.
SWIB sold 627,969 Apple shares in the first quarter, reducing its investment to 3.8 million shares.
The board also sold 1.4 million Microsoft shares to end the first quarter with 6.9 million shares of the software giant.
Microsoft had a stable first quarter, but stocks rose 17.1% in the second. Our latest Big Money survey found that among individual stocks, Microsoft was one of the most popular choices. Analysts have noted the company’s strong cloud activity.
Intel shares fell 9.6% in the first quarter, but have so far gained 10.3% in the second. Earlier this month, the chip giant agreed to pay transportation technology company Moovit $ 900 million, which has an app that helps users map transportation routes.
SWIB sold 772,746 Intel shares to reduce its investment to 2.8 million shares at the end of the first quarter.
The board of directors almost doubled its investment in Uber by buying 737,558 additional shares at the end of March with 1.6 million shares.
Uber shares fell 6.1% in the first quarter and increased 17.4% in the second, faced with California state lawsuits and corporate layoffs. A relatively optimistic outlook has raised Uber’s stock.
Inside Scoop is a regular Barron report covering stock market transactions by corporate executives and board members – supposedly insiders – as well as large shareholders, politicians and other figures. Due to their insider status, these investors are required to disclose trading transactions with the Securities and Exchange Commission or other regulatory groups.