#USA #Financial Performance #Richmond #Investment Strategies #Virginia Retirement System

Virginia Retirement System Achieves Remarkable 12.1% Return on Investments

The Virginia Retirement System (VRS) is celebrating a significant milestone with its trust fund reaching a market value of $135.2 billion as of June 30, 2026. This remarkable growth is attributed to an impressive investment return of 12.1%, net of fees, for the fiscal year. This performance not only surpasses the fund's long-term assumed return rate of 6.75%, but also continues the positive trend of growth that has characterized the past decade.

In the last year alone, the fund's market value increased by approximately 10.1%. The returns achieved by VRS have consistently met or exceeded the benchmarks set by the board over five and ten-year periods, demonstrating the effectiveness of their investment strategies. While the fund's returns for the one and three-year benchmarks fell slightly short, the three, five, and ten-year returns still exceeded the actuarial assumed return rate, highlighting the resilience of the VRS investment strategy.

Susan T. Gooden, Ph.D., chair of the VRS Board of Trustees, emphasized the long-term commitment involved in managing a retirement trust fund. Under her leadership, VRS has benefitted from the expertise of its seasoned investment team, which has demonstrated a strong commitment to careful fund management for the benefit of its members and retirees. Dr. Gooden noted that over the past decade, VRS has generated an additional $6 billion compared to a passive, indexed investment strategy. This added value not only strengthens the trust fund but also ensures that every dollar entrusted to them is maximized effectively.

Andrew Junkin, VRS' chief investment officer, elaborated on the factors contributing to this year’s excellent performance. He attributed the results to a well-diversified investment strategy complemented by a disciplined approach to risk management. "Investment results are developed over a longer timeframe – years rather than quarters," Junkin remarked, reinforcing the importance of a long-term perspective. By maintaining a focus on balancing risk and opportunity, the investment team at VRS has consistently added value through diverse market cycles, ensuring the fund is positioned to meet its obligations for decades ahead.

FY 2026 Performance by Asset Class

The performance of major asset classes within VRS' portfolio for the fiscal year 2026 is as follows:

• - Public equity program: 23.8%
• - Private equity program: 5.2%
• - Real assets program: 6.7%
• - Credit strategies program: 8.3%
• - Diversifying strategies: 7.1%
• - Private investment partnerships: 9.7%
• - Fixed income program: 5.3%

These figures not only underline VRS' robust asset management strategy but also reflect the careful selection process that helps mitigate risks while maximizing returns for its members. By regularly reviewing and adjusting strategies based on market conditions, VRS ensures a resilient approach to retirement benefits.

To explore more about VRS' comprehensive investment strategies, you can visit varetire.org/investments.

About Virginia Retirement System

The Virginia Retirement System operates as an independent state agency located in Richmond, Virginia. It provides a range of retirement and other benefits to covered employees in the public sector across Virginia. VRS is ranked as the 15th largest public or private pension fund in America and the 36th largest worldwide, serving more than 861,000 active and inactive members, retirees, and beneficiaries. The membership encompasses a diverse group of professionals, including public school teachers, municipal employees, state agency staff, and law enforcement officials. Approximately 864 employers currently participate in VRS, highlighting its extensive reach and impact within the community.