RICHMOND, August 18, 2022 — The Virginia Retirement System reported a 0.6% return, net of fees, on its investment portfolio for fiscal year 2022, ending the year with approximately $101.2 billion.
“We registered a positive return by following VRS’ long-term strategy of diversification while taking advantage of strong private markets,” Chief Investment Officer Ronald D. Schmitz said. “Although the return was muted compared to last year’s banner 27.5%, the VRS total fund outperformed passively managed stock and bond indices by over 10%. In addition, we exceeded the assumed rate of return for the three-, five- and 10-year periods.”
“VRS remains in a solid position to support our current and future retirees while maintaining stable contribution rates for our employers,” said VRS Board Chair A. Scott Andrews. “Our investment professionals are bound by a risk-controlled approach, typically contributing about 0.5% of average added value annually over the long term. In a year scarred by inflation, war, supply chain issues and other disruptions, the VRS investment staff achieved a remarkable 6% of added value above the benchmark, which translates to hundreds of millions toward the bottom line of the VRS trust fund.”
During fiscal year 2022, the major asset classes performed as follows:
- Public equity program returned -14.8%
- Fixed income program returned -10.6%
- Credit strategies program returned 1.5%
- Real assets program returned 21.7%
- Private equity program returned 27.4%
- Private investment partnerships 17.0%
- Multi-asset public strategies -4.7%
The portfolio included approximately $29.9 billion in public equity, $12.9 billion in fixed income, $14.5 billion in credit strategies, $15.1 billion in real assets, $19.0 billion in private equity, $2.6 billion in private investment partnerships and $3.6 billion in public strategies portfolio, as of June 30, 2022.