Virginia Retirement System, Richmond, grew $4.1 billion last year, thanks largely to the continued runup in the domestic stock market. The pension fund earned a 14.5% return on its investments in 1998, growing to $32.7 billion at the end of the year from $28.6 billion a year earlier. It had $17.5 billion invested in domestic stocks; $4.3 billion in foreign stocks; $7.7 billion in fixed income; $1.5 billion in alternative investments; $1.2 billion in real estate; and $0.5 billion in cash. "We have been fortunate to have most of our equity exposed to the domestic market over the past four years. This has been a tremendous advantage for the fund, said Nancy C. Everett, CIO.