RICHMOND, Va., Aug. 15, 2016 /PRNewswire-USNewswire/ -- The Virginia Retirement System (VRS) achieved a 1.9 percent return, net of fees, on its investment portfolio for fiscal year 2016, ending the year with $68.1 billion in assets.
"In fiscal year 2016, the market continued to be volatile, yet VRS was able to deliver positive returns that exceeded the benchmark," said Chief Investment Officer Ronald D. Schmitz. "We know market environments vary from year to year, and we will see returns above and below the 7 percent assumed rate of return level. However, VRS is a long-term investor and we met our goal of exceeding the 10-year, five-year, three-year and one-year benchmark for periods ending June 30, 2016."
During fiscal year 2016, the major asset classes performed as follows:
- Real assets program returned 11.6 percent
- Fixed income program returned 6.8 percent
- Private equity program returned 6.6 percent
- Credit strategies program returned 1.2 percent
- Strategic opportunities portfolio returned -2.4 percent
- Public equity program returned -3.2 percent
The portfolio included approximately $26.6 billion in public equity, $12.5 billion in credit strategies, $12.0 billion in fixed income, $8.8 billion in real assets, $5.2 billion in private equity and $1.1 billion in strategic opportunities portfolio, as of June 30, 2016.
"In this year's challenging market, VRS was able to generate a meaningful contribution toward the growth of the fund. However we remain focused on achieving our long-term actuarial rate of return in order to maintain the fund's ability to fulfill the commitments made to its retirees and beneficiaries," said VRS Board Chairman Robert L. Greene. "The fund concentrated on proven opportunities, such as real assets and fixed income, while adding value through credit strategies and private equity. We will continue to mitigate risk at our targeted return level while working to meet the actuarially assumed rate of return and proceeding with the five-year phase in of the asset allocation policy for the trust fund."
VRS ranks as the 22nd largest public or private pension fund in the U.S. and 49th largest in the world, serving approximately 677,000 members, retirees and beneficiaries. The active employees include about 147,000 teachers, 106,000 local government employees and 78,000 state employees. In addition, VRS provides benefits to more than 192,000 retirees and beneficiaries.
SOURCE Virginia Retirement System