Virginia Retirement System, Richmond, returned 19.1% on its investments for the fiscal year ended June 30, putting fund assets at $54.5 billion.
“On a risk-adjusted basis, last year's performance was outstanding,” said Charles W. Grant, VRS chief investment officer, in a statement issued Wednesday. “We are pleased with last year's results, especially in light of steps taken in recent years to better diversify the fund.”
VRS Board Chairman Diana F. Cantor said in the statement that the results were remarkable considering that the board had reduced the portfolio's risk to protect against market swings. The latest results also mark the point where VRS recovered all the losses incurred during the market collapse in 2008 and 2009, Ms. Cantor said.
During fiscal 2011, the fund's public equity program returned 27.2%, private equity returned, 17.6%; fixed income, 5.8%; real estate, 23.2%; and credit strategies, 14.7%.
In 2010, the board lowered its rate-of-return assumption to 7% from 7.5%, and will certify that rate of return after hearing from its actuary at its October meeting.