Virginia Retirement System Achieves 9.9% Return, Surpassing $122 Billion Market Value

VRS Achieves Outstanding Return

The Virginia Retirement System (VRS) has reported a substantial return of 9.9%, net of fees, for the fiscal year ending June 30, 2025. This impressive performance has propelled the total market value of the fund to an all-time high of $122.8 billion, considerably exceeding the assumed return rate of 6.75%.

A. Scott Andrews, Chair of the VRS Board of Trustees, shared insights on the robust return, emphasizing the importance of the comprehensive long-term investment strategy employed by the fund. He stated, "Through changing market conditions, the System's performance reinforces the value of our disciplined long-term investment strategy." The VRS team remains committed to ensuring a financially secure retirement for Virginia's educators, emergency personnel, and state and local workers.

Andrew Junkin, the Chief Investment Officer of VRS, reported that the fund's overall performance met or even surpassed the benchmarks established by the board over one, five, and ten-year periods. The standout driver of returns this year was a strong performance in public equities, with all asset classes yielding positive returns despite the backdrop of market volatility and economic uncertainty.

"This year, strong returns in public equities led the way, and all of our asset classes and programs generated positive returns," Junkin commented, highlighting the effectiveness of the fund's diversified investment strategy. The strategic allocation of assets has played a crucial role in achieving favorable returns, enabling the fund to navigate through turbulent financial landscapes.

The VRS investment team meticulously oversees the portfolio, accumulating savings that ultimately contribute to providing benefits for public employees in Virginia. Andrews emphasized the significant impact made by VRS investment professionals, stating, "VRS investment professionals have added $7.1 billion over the past decade that would not have been realized by managing a passive, indexed portfolio."

Performance Breakdown by Asset Class

The fiscal year 2025 saw major asset classes within the VRS portfolio performing as follows:

- Public Equity Program: 17.8%
- Private Equity Program: 5.7%
- Real Assets Program: 3.7%
- Credit Strategies Program: 9.1%
- Diversifying Strategies: 3.6%
- Private Investment Partnerships: 8.8%
- Fixed Income Program: 6.9%

Each segment contributed positively to the fund's overall success, reinforcing the advantage of a diverse investment strategy tailored to withstand various economic climates.

In summary, the Virginia Retirement System’s strategic investment management has not only produced significant returns but has also fortified its commitment to the retirement security of public employees across the state. Looking forward, VRS's ongoing focus on disciplined investment practices and continuous adaptation to market conditions will be essential in sustaining these positive trends in the future.

As a closing note, VRS Chief Investment Officer Andrew Junkin has made a video segment explaining the return performance in more detail, shedding light on the factors that contributed to such favorable results this fiscal year.