The Wisconsin public pension system rode the wave of risingequity markets last year to post a gain of 13.5 percent in its maininvestment fund while beating the benchmarks it set for itself.

The state’s retirement system, considered one of the healthiestin the nation, saw returns of 35.4 percent on its U.S. equityinvestments, according to preliminary data released by the State ofWisconsin Investment Board, which manages the funds.

The system’s largest component, the Core Fund, had assets of$86.5 billion at the end of 2013. The 13.5 percent return surpassedthe benchmark of 12.9 percent the board had set.

The smaller Variable Fund, with assets of $7.2 billion, hadgains of 29 percent last year, exceeding the board’s 28 percentbenchmark.

The Core Fund’s investments are split evenly between U.S. andinternational stocks, with other types of instruments included fordiversification. The Variable Fund is more heavily invested in U.S.stocks, with 70 percent deployed that way.

“The Core Fund’s performance was strong in terms of total returnand performing better than its market benchmarks. As a result ofstrong internal investment management and the careful selection ofoutside managers, [the board] added more than $2.4 billion in addedvalue over the past five years,” said Michael Williamson, theboard’s executive director, in a release.

The pension funds have posted investment gains in four ofthe last five years, the board said, erasing the losses incurredduring the Great Recession. For 2014, contribution levels andbenefit levels will rise, the board said.

A 2012 Pew study of state pension funds found Wisconsin’s pension fund fully funded as of the end of2010. Total assets under management by the investment board totaledabout $101 billion at the end of last year. The system covers579,000 current and retired state employees.