RICHMOND, August 11, 2021 — The Virginia Retirement System achieved a 27.5% return, net of fees, on its investment portfolio for fiscal year 2021. The VRS trust fund ended the year with approximately $101.8 billion, exceeding the $100 billion mark for the first time in its history.
"We have registered one of the strongest return years in recent memory, far surpassing the 6.75% annual assumed rate of return for the fund, but more important, exceeding the assumed rate of return for the three- five- and 10-year periods," Chief Investment Officer Ronald D. Schmitz said. "We were in position to take advantage of conditions in the public equity, private equity and private credit arenas, as well as our other asset classes. We also kept focus on our long-term investment strategy, pursuing broad opportunities and optimal returns while balancing risk to deliver high value to the fund."
"We are buoyed by this year’s historic return and high-water mark for the portfolio, which contribute to the long-term health of a fund held in trust for the Commonwealth's public servants," noted VRS Board Chair O'Kelly E. McWilliams III. "Likewise, I applaud the commitment of our professional investments team, who have contributed to the robust growth of the fund, helping ensure a stable contribution rate for our participating employers, including the Commonwealth as well as counties, cities and towns and other political subdivisions across the state."
During fiscal year 2021, the major asset classes performed as follows:
- Public equity program returned 41.0%
- Fixed income program returned 3.3%
- Credit strategies program returned 18.4%
- Real assets program returned 11.3%
- Private equity program returned 54.1%
- Private investment partnerships 30.8%
- Multi-asset public strategies 20.4%
The portfolio included approximately $37.2 billion in public equity, $13.6 billion in fixed income, $14.2 billion in credit strategies, $12.1 billion in real assets, $15.9 billion in private equity, $2.0 billion in private investment partnerships and $3.1 billion in public strategies portfolio, as of June 30, 2021.