VRS Achieves 1.4 Percent Return for 2012

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Aug 22, 2012, 05:39 ET

RICHMOND, Va., Aug. 22, 2012 /PRNewswire-USNewswire/ -- The Virginia Retirement System (VRS) achieved a 1.4 percent net return on its investment portfolio for fiscal year 2012, ending the year with $53.1 billion in assets.

"We are pleased with the results we were able to achieve in a market fraught with volatility and depressed returns. In fact, the staff's skillful performance allowed them to beat the benchmark for the fund as a whole last year," said VRS Chief Investment Officer Ronald D. Schmitz.

During fiscal year 2012, the fund's real assets program returned 11.9 percent. The private equity program returned 10.9 percent, the fixed income returned 7.9 percent and the credit strategies program returned 1.4 percent. The public equity program returned -4.6 percent, reflecting the market shifts during the year.

The portfolio included $21.8 billion in public equity, $12.5 billion in fixed income, $7.2 billion in credit strategies, $4.8 billion in private equity and $4.3 billion in real assets, as of June 30, 2012.

"Although the market did not produce the returns we had hoped for, our staff made the best of a difficult global market, taking advantage of every opportunity to protect the portfolio and add value. Realistically, the world has not recovered from the 2008 financial meltdown, and it is still a difficult time to be an investor. As the market has become more volatile, the Board of Trustees has redoubled its focus on the appropriate asset allocation and risk profile for the trust fund," said VRS Board Chairman Diana F. Cantor.

VRS serves approximately 600,000 members, retirees and beneficiaries. The active employees include about 147,000 teachers, 104,000 local government employees and about 91,000 state employees. In addition, VRS provides benefits to over 162,000 retirees and beneficiaries. The retirement system ranks as the nation's 22^nd largest public or private pension fund.

SOURCE Virginia Retirement System