RICHMOND, August 29, 2018 — The Virginia Retirement System achieved a 7.5% return, net of fees, on its investment portfolio for fiscal year 2018, exceeding the 7% assumed rate of return. The trust fund ended the year with approximately $78.6 billion, marking a new high point for the fund.
"The portfolio was able to exceed the assumed rate of return, based on strong performance in several market sectors, especially private assets," Chief Investment Officer Ronald D. Schmitz said. "Longer-term performance generated by staff and its external partners continue to add value compared to passive benchmarks. Over time, this excess performance reduces the cost of providing benefits to public employees."
During fiscal year 2018, the major asset classes performed as follows:
- Public equity program returned 9.7%
- Private equity program returned 15.8%
- Real assets program returned 9.5%
- Credit strategies program returned 5.2%
- Fixed income program returned -0.1%
- Strategic opportunities program returned 7.0%
The portfolio included approximately $31.4 billion in public equity, $12.4 billion in credit strategies, $12.1 billion in fixed income, $10.6 billion in real assets, $7.9 billion in private equity and $1.9 billion in strategic opportunities portfolio, as of June 30, 2018.
"As an investor, VRS focuses on developing strategies that will sustain the fund for the long-term so that VRS is positioned to pay retiree benefits years into the future," VRS Board Chairman Mitchell L. Nason said. "This positive return generated by the efforts of our investment team exceeds the assumed rate of return and will help improve the funded status of the plan."