A Closer Look Behind VRS’ Long-Term Investment Strategy
The value of the VRS Trust Fund exceeded $100 billion for the first time in fiscal year 2021. VRS now ranks as the 17th largest public or private pension fund in the U.S. and the 46th largest in the world.
As managers of the VRS Trust Fund, our investment team knows that decisions made today must support current and future needs of Virginia’s teachers, local government workers and state employees.
Setting the Strategy
With a focus on long-term returns and performance, the VRS Board of Trustees sets the portfolio policy. Our professional investment team executes the board’s policy through external investment manager selection, active management of in-house portfolios and active management of overall investment exposures.
Diversifying the Portfolio
By mixing stocks, bonds, real assets and other investment strategies, VRS creates a diverse portfolio, which also minimizes significant fluctuation in the rates that employers pay into the fund.
Looking Beyond a Single Year
VRS focuses on performance over the long term, 20 to 40 years, not simply a single year. By balancing risk with reward, the VRS fund is projected to grow steadily over time, meeting or exceeding its assumed rate of return.
In-House Expertise Adds Value
VRS investment professionals provide an average annual added value of $375 million, money that wouldn’t be gained if the fund invested in a passive, indexed portfolio.
Find Out More
Check out the VRS investments page to gain deeper insights into how VRS’ long-term investment strategy supports current and future retirees. Learn more about:
- VRS’ investment objectives and strategies.
- How assets are allocated across the fund.
- Investment returns by fiscal year.
- Market value of assets by fiscal year.
Watch a series of videos featuring interviews with VRS investment professionals, who provide important context for how VRS structures its investment strategy and sets benchmarks to guide progress toward long-term goals.
In the latest quarterly performance and asset allocation reports, Chief Investment Officer Ron Schmitz offers insights into the latest market trends and how they impact VRS’ investments.
