The second change removes limits on the amounts of CDs that we may purchase at particular maturity levels. The new guidelines allow the portfolio manager to determine the appropriate maturity profile for the portfolio, as is the case for other investments. Some ambiguity in the old guidelines is also eliminated as a result.
Domestic Equities
Approximately $21.9 billion of WRS assets are managed in domestic stock portfolios. Close to $9.2 billion, or 42%, is actively managed internally. Previous guidelines limited SWIB's ownership of a company's stock to 10% of the outstanding shares. Until recently, ownership of more than 10% required the filing of added information with the Securities and Exchange Commission (SEC) and would have made the shareholder subject to other restrictive trading requirements. The SEC has raised the limit from 10% to 20%. As a result, our guidelines were modified to similarly increase the limit to 20%.
SWIB's small-company stock portfolio is likely to be the primary user of the expanded authority. However, we expect that ownership of more than 10% of a company's stock will only occur in a limited number of cases. Our guidelines continue to limit our overall equity exposure to any one company to no more than 5% of market value of publicly traded stocks owned by the Fixed and Variable Retirement Funds. The assets of the trust funds continue to be well diversified.
The domestic equity guidelines were also modified to provide for a new portfolio that will focus on companies between $750 million and $3.0 billion in market capitalization. It will be managed internally by current staff. This new "target" portfolio will bridge between our small- and mid-size company portfolios. We foresee opportunities in this area of the market. The portfolio is subject to the same guidelines presently in effect for SWIB's other domestic equity portfolios.
Venture Capital and Leveraged Buy-Out Portfolios
SWIB invests assets of the Fixed Retirement Fund in leveraged buy-out (LBO) funds that seek superior returns through closely held ownership and leverage. Typically, we invest in limited partnership interests, although the corporate form of ownership may also be used. The LBO portfolio is valued at $896 million.
We invest assets of the Fixed and Variable Funds in venture capital funds. These entities, in turn, invest in various stages of a new company's development, generally prior to a public offering of the company's stock. Our venture capital portfolio is valued at $95 million.
The guideline change increases the amount that may be invested in international funds from 10% to 20% of the value of the LBO and venture capital portfolios. "International funds" include any fund with a majority of its investment in non-U.S. instruments. As has been the policy for these portfolios, no such investments may be made in emerging markets. The new authority enables the portfolio manager to take advantage of an expanding international private placement market. We continue to see extensive deal-flow in these international funds and believe that this increased authority will help the fund to remain active in the attractive (developed) international private equity arena.
Please contact me if you have any questions about this report.
Sincerely,
PATRICIA LIPTON
Executive Director, SWIB
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State of Wisconsin
Department of Employment Relations
Madison
January 1998
The Written Hiring Reasons Report for Wisconsin State Government is enclosed. The report, covering the periods July 1, 1995, through June 30, 1996 and July 1, 1996, through June 30, 1997, is required under ss.
230.25 (1p) and
230.27 (2k), Wis. Stats., created by
1991 Wisconsin Act 101. Act 101 made several changes in Wisconsin civil service law regarding veterans preference and affirmative action. The law requires "written hiring reasons" for certain hiring transactions and requires the Department of Employment Relations to summarize the hiring reasons and prepare an annual report.
Information for this report came from summary information provided by each agency. Your efforts and cooperation in compiling the summary reports is appreciated. The report includes a summary and information for each state agency and the UW System unit.
If you have any questions, please contact Claire Dehnert, Division of Affirmative Action, at (608) 267-1005.
Sincerely,
JON E. LITSCHER
Secretary
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Representative R. Potter asked unanimous consent that the Assembly stand recessed until 1:30 P.M. Granted.
The Assembly stood recessed.
9:50 A.M.
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1:30 P.M.
The Assembly reconvened.
Speaker Pro Tempore Freese in the chair.
Representative Foti asked unanimous consent for a quorum call. Granted.
A quorum was present.
Representative Ward asked unanimous consent that his leave of absence be lifted. Granted.
__________________
Representative R. Potter asked unanimous consent for a leave of absence for balance of today's session for Representative Baumgart. Granted.
__________________
Assembly Bill 169
Relating to: the prohibition of certain billing practices for goods and certain services and providing a penalty.
Assembly amendment 1 to Assembly substitute amendment 1 to Assembly Bill 169 offered by Representative Black.
Representative Otte moved that Assembly amendment 1 to Assembly substitute amendment 1 to Assembly Bill 169 be laid on the table.
Representative Foti asked unanimous consent that Assembly Bill 169 be laid on the table. Granted.
Assembly Bill 334
Relating to: the regulation of home inspectors, providing an exemption from emergency rule procedures, granting rule-making authority and providing penalties.
The question was: Shall Assembly substitute amendment 1 to Assembly Bill 334 be adopted?
Motion carried.
The question was: Shall Assembly Bill 334 be ordered engrossed and read a third time?
Motion carried.
Representative Foti asked unanimous consent that the rules be suspended and that Assembly Bill
334 be given a third reading. Granted.
Representative Foti asked unanimous consent that Assembly Bill 334 be referred to the joint committee on Finance. Granted.
Representative Foti asked unanimous consent that the rules be suspended and that Assembly Bill
334 be withdrawn from the joint committee on Finance and taken up at this time. Granted.
The question was: Shall Assembly Bill 334 be engrossed and reordered to a third reading?
Motion carried.
Representative Foti asked unanimous consent that the rules be suspended and that Assembly Bill
334 be given a third reading. Granted.
The question was: Assembly Bill 334 having been read three times, shall the bill be passed?
The roll was taken.
The result follows:
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Ayes - Representatives Ainsworth, Albers, Baldwin, Black, Boyle, Brandemuehl, Carpenter, Coggs, Cullen, Dobyns, Duff, Foti, Freese, Gard, Goetsch, Green, Gronemus, Grothman, Gunderson, Hahn, Handrick, Hanson, Harsdorf, Hasenohrl, Hebl, Hoven, Huber, Hubler, Huebsch, Hutchison, Jeskewitz, Johnsrud, Kaufert, Kedzie, Kelso, Klusman, Kreibich, Kreuser, Krusick, Kunicki, La Fave, Ladwig, F. Lasee, Lazich, J. Lehman, M. Lehman, Linton, Meyer, Morris-Tatum, Murat, Musser, Olsen, Ott, Otte, Ourada, Owens, Plale, Plouff, Porter, R. Potter, Powers, Reynolds, Riley, Robson, Ryba, Schafer, Schneider, Seratti, Skindrud, Spillner, Springer, Staskunas, Steinbrink, Sykora, Travis, Turner, Underheim, Urban, Vander Loop, Vrakas, Walker, Ward, Wasserman, Wieckert, Williams, Wood, L. Young, R. Young, Ziegelbauer, Zukowski and Speaker Jensen - 91.
Noes - Representatives Bock, Dueholm, Krug, Lorge and Notestein - 5.
Absent or not voting - Representatives Baumgart and Nass - 2.
Motion carried.
Representative Foti asked unanimous consent that the rules be suspended and that Assembly Bill
334 be immediately messaged to the Senate. Granted.
Assembly Bill 436
Relating to: operation of snowmobiles in proximity to persons not on snowmobiles.
The question was: Shall Assembly substitute amendment 1 to Assembly Bill 436 be adopted?
Motion carried.
The question was: Shall Assembly Bill 436 be ordered engrossed and read a third time?
Motion carried.
Representative Foti asked unanimous consent that the rules be suspended and that Assembly Bill
436 be given a third reading. Granted.
The question was: Assembly Bill 436 having been read three times, shall the bill be passed?
Motion carried.
Representative Ladwig asked unanimous consent that the rules be suspended and that Assembly Bill
436 be immediately messaged to the Senate. Granted.
Assembly Bill 516
Relating to: the specified minimum percentage of postconsumer fiber contained in newsprint.
Assembly amendment 1 to Assembly substitute amendment 1 to Assembly Bill 516 offered by Representatives Johnsrud and Reynolds.
The question was: Shall Assembly amendment 1 to Assembly substitute amendment 1 to Assembly Bill 516 be adopted?
Motion carried.
The question was: Shall Assembly substitute amendment 1 to Assembly Bill 516 be adopted?
Motion carried.
The question was: Shall Assembly Bill 516 be ordered engrossed and read a third time?
Motion carried.
Representative Ladwig asked unanimous consent that the rules be suspended and that Assembly Bill
516 be given a third reading. Granted.
The question was: Assembly Bill 516 having been read three times, shall the bill be passed?
Motion carried.
Representative Ladwig asked unanimous consent that the rules be suspended and that Assembly Bill
516 be immediately messaged to the Senate. Granted.
Assembly Bill 550
Relating to: the annual compensation of volunteer fire fighters and emergency medical technicians who are eligible to hold elective office.
The question was: Shall Assembly Bill 550 be ordered engrossed and read a third time?
