RICHMOND, September 9, 2019 — The Virginia Retirement System achieved a 6.7% return, net of fees, on its investment portfolio for fiscal year 2019. The trust fund ended the year with approximately $82.3 billion, setting a new high for the fund.
"We achieved a return close to the 7% assumed rate of return for the fund, and I am pleased with the fund's level of performance and resilience, especially considering the volatility of domestic and global markets during the past year," Chief Investment Officer Ronald D. Schmitz said. "We saw good returns in the private equity and fixed income portfolios, which contributed to the overall performance of the fund."
"The VRS Board supports the long-term strategic objective of increasing exposure to private markets, which helped offset the more moderate returns in traditional stocks and bonds," noted VRS Board Chairman Mitchell L. Nason. "The VRS Board and Investment staff remain focused on the long-term investment horizon of 30 to 40 years, so that we can continue to meet our commitment to public servants who place both their own funds and their trust in VRS."
During fiscal year 2019, the major asset classes performed as follows:
- Public equity program returned 3.9%
- Private equity program returned 14.0%
- Real assets program returned 7.8%
- Credit strategies program returned 6.8%
- Fixed income program returned 8.3%
- Private investment partnerships 6.7%
- Multi-asset public strategies 2.2%
The portfolio included approximately $32.1 billion in public equity, $11.9 billion in credit strategies, $12.9 billion in fixed income, $11.1 billion in real assets, $9.5 billion in private equity, $1.1 billion in private investment partnerships and $2.2 billion in public strategies portfolio, as of June 30, 2019.