Virginia Retirement System, Richmond, returned a net 7.5% in its fiscal year ended June 30, with assets hitting a record $78.6 billion, the pension fund reported Wednesday.
Chief Investment Officer Ronald D. Schmitz said in a statement that the portfolio exceeded its 7% assumed rate of return due to strong performance in several sectors, especially private assets. However, the return trailed the 7.7% benchmark return for the year.
"Longer-term performance generated by staff and its external partners continue to add value compared to passive benchmarks. Over time, this excess performance reduces the cost of providing benefits to public employees," Mr. Schmitz said.
Fund performance net of fees was 7.1% annualized over three years, 8.3% over five years and 6.1% over 10 years. VRS returned 12.1% in the previous fiscal year ended June 30, 2017, topping the 11.8% benchmark.