VRS Announces Gain for 2004 Fiscal Year

RICHMOND-The Virginia Retirement System announced that the fund returned 17.9 percent for fiscal year 2004, ending up with assets totaling just over $40 billion. This is the second straight year that the fund posted a positive return.

Each of the fund's five asset classes had a positive return during the fiscal year. Private equity was the highest, posting a 27.8 percent return followed by public equity at 24.1 percent. The real estate portfolio experienced a 13.1 percent return and the hedge fund return was 9.5 percent. Fixed income returned 1 percent.

The portfolio had $26.9 billion in public equities, $8.1 billion in fixed income, $1.5 billion in real estate, $1.2 billion in hedge funds and $1.9 billion in private equity on June 30. The three-year annualized return was 3.8 percent and 3.7 percent for the five-year annualized return.

"While the fund has been rewarded for maintaining their commitment to equities over the past year, the Board's strategy to maintain a diversified portfolio will help to smooth out the returns going forward. The Board continues to focus on the long-term in order to maximize the benefits for all VRS members," said Chief Investment Officer Nancy Everett.

VRS serves over 521,000 active and retired members. The active employees include over 136,000 teachers, 94,000 political subdivision employees and almost 89,000 state employees. In addition, VRS provides benefits to over 113,000 retirees and beneficiaries. The retirement system is ranked as the nation's 30th largest pension fund and the 47th largest in the world.

Contact: Jeanne Chenault 804-697-6665

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