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VRS Reports 6.1% Return for Fiscal Year 2023

The Virginia Retirement System reported a 6.1 % return, net of fees, on its investment portfolio for fiscal year 2023, ending the year with approximately $105 billion.

Our disciplined strategy of maximizing returns while minimizing risk has resulted in a pattern of outperformance for the long term, exceeding the assumed rate of return for the three-, five- and 10-year periods, Chief Investment Officer Andrew Junkin said. Against a backdrop of widely varying economic predictions, VRS investment professionals strategically managed the diversified portfolio to minimize losses and achieve a positive return with a lower level of risk.

The VRS portfolio is positioned to be resilient in uncertain economic times, VRS Board Chair A. Scott Andrews said. Recognizing that two-thirds of retirement benefit payments come from investment portfolio returns, our dedicated VRS investment team manages assets with skill, prudence and diligence. Our goal is to ensure that we sustain a solid financial position to support benefit payments to nearly 800,000 members, retirees and beneficiaries.

The major asset classes performed as follows for the fiscal year ending June 30, 2023:

• Public equity program returned 15.6%
• Fixed income program returned 0.5%
• Credit strategies program returned 5.7%
• Real assets program returned 1.7%
• Private equity program returned -0.7%
• Private investment partnerships 1.9%
• Multi-asset public strategies 7.7%

For more information about VRS’ investment strategy, visit varetire.org/investments.

See how VRS invests.