Take a Closer Look at VRS' Long-Term Investment Strategy
The VRS Trust Fund reached a new milestone in fiscal year 2024, growing to $113.9 billion with a 9.9% return, net of fees. As managers of the fund, the VRS investment team knows that decisions made today must support current and future needs of Virginia’s teachers, local government workers and state employees.
Setting VRS’ Strategy
The VRS Board of Trustees sets the asset allocation, policy portfolio and applicable benchmarks that guide how your retirement funds are invested. VRS follows a broad, diversified investment strategy aimed at minimizing the risk of loss and maximizing returns over a long-term time horizon. State law requires that of the nine board members, four must be investment experts; one must be experienced in employee benefit plans; and the others represent various VRS member groups. In addition, the Board of Trustees receives insights and benefits from the expertise of the Investment Advisory Committee, which consists of professionals with institutional financial expertise.
“VRS executes its investment strategy and decisions keeping the best interests of VRS members, retirees and beneficiaries as a foundational tenet,” said VRS Board of Trustees Chair A. Scott Andrews.
Diversifying the Portfolio
VRS invests across multiple asset classes – public and private equity, fixed income, real assets, credit and more – to reduce risk and make the fund more resilient during market changes. Diversifying helps minimize the likelihood of significant fluctuations in employer contribution rates, adding stability for local and state budgets. To learn more about our approach, watch VRS’ Investments video series.
Looking Ahead
With a long-term view of 20 to 40 years, VRS works to grow the fund steadily. Over the past decade, the investment team has provided an added value of about $7.2 billion to the fund, money that would not be realized from managing a passive, indexed portfolio.
“That’s especially important because investment earnings fund about two-thirds of benefit payments to VRS retirees and beneficiaries,” said Chief Investment Officer Andrew Junkin.
Find Out More
View the latest quarterly updates and gain insights into how VRS’ investment strategy supports current and future retirees.
