Virginia Retirement System Returns 14.1%
Thanks to the exceptional performance of its credit and private equity commitments, the Virginia Retirement System (VRS) posted a positive double-digit return for the 2010 fiscal year.
The Richmond-based system’s CIO Charles Grant said Monday that its nearly $47.7 billion investment portfolio returned 14.1% for the period. In particular, credit strategies hit 22.2%, private equity posted 17.3%, public equity posted 14.8%, fixed-income reached 14.2% and real estate generated a 1.5% return, the Aug. 30 press release said.
"We are pleased with last year's performance, especially in light of a number of defensive positions initiated in the portfolio over the last few years,” Grant said in his comments. “With over 50% of the portfolio allocated to a combination of investment grade bonds, credit strategies and lower volatility equity investments, last year's performance was particularly strong on a risk-adjusted basis.”
To add, the VRS Board Chair Diana Cantor said the pension fund’s trustees are committed and remain “confident” that its long-term return expectations will be met.
Earlier in the year, Cantor, an industry veteran and partner at New York-based Alternative Investment Management (AIM), was appointed by Gov. Bob McDonnell to lead the VRS Board.
Furthermore, the report’s findings indicate that the three- and five-year annualized returns were 4.9% and 3.1%, respectively.
As of June 30, the VRS committed $21.3 billion to public equity, $10.6 billion to fixed-income, $7.8 billion to credit strategies, $4.3 billion to private equity and $3.1 billion to real estate.
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