 |
|
|
|
|
|
|
|
|
|
|
|
 |
|
||||||||||
 |
 |
 |
|
||||||||
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
|
|
 |
 |
 |
 |
 |
|
||||||
Richmond Times-Dispatch
Tuesday, July 29, 1997
Virginia pension fund hits jackpot
Investment return hits a record again
BY MICHAEL HARDY
Times-Dispatch Staff Writer
The Virginia Retirement System has hit the jackpot on its investments.
For the third year in a row, the system has posted a performance rec ord, with the latest total rate of return on investments of 21.9 percent. The fiscal year ran from July 1, 1996, to June 30.
The retirement fund has grown to $26.8 billion, a rise of $4.8 billion from fiscal 1996. In that fiscal year, the fund increased by 18.2 percent.
Erwin H. Will Jr., its chief investment officer, yesterday declared, ''Not since fiscal year 1986 have returns been better. In fact, VRS has never experienced three consecutive years of such growth in its entire history.''
VRS is the 30th largest public or private pension fund in the country and the 49th biggest in the world. It has 277,000 active and 82,000 retired state workers.
Alternative investments led the fund's investment portfolio, with a 30.9 percent return. That category ranges from hedge funds to arbitrage strategies.
Domestic equities trailed it slightly, at 30.7 percent. Real estate grew by 15.6 percent, and emerging markets returned 15.2 percent. International equities increased by 13.3 percent, and fixed income returned 9 percent.
''VRS continued to benefit from the bull market in domestic equities during the past fiscal year,'' Will explained. ''At the same time, all segments of the investment portfolio performed well.''
He commended the efforts of the VRS board of trustees, its advisory panels and investment staff.
As for the current fiscal year, which began July 1, Will said the outlook is unclear. ''I believe the portfolio will continue to perform well,'' he said.