RICHMOND, Va., Aug. 12, 2026 — The Virginia Retirement System’s trust fund grew to $135.2 billion in market value as of June 30, 2026, following a 12.1% investment return, net of fees, for the fiscal year. The return exceeded the fund’s long-term assumed rate of return of 6.75%.
This year’s return continues to build on a decade of growth, with the fund’s market value increasing by approximately 10.1% over the last year.
The fund’s total performance met or exceeded board-established custom benchmarks over the five and 10-year periods and was just short of the benchmarks for the one- and three-year periods. However, the three- five- and 10-year returns exceeded VRS’ actuarial assumed rate of return. Investment earnings remain the largest source of retirement benefit funding, supporting approximately two-thirds of benefit payments.
“Managing a retirement trust fund requires a long-term commitment to responsible stewardship,” said Susan T. Gooden, Ph.D., chair of the VRS Board of Trustees. “Over the years, VRS has benefited from an experienced investment team that carefully manages the fund while remaining focused on its responsibility to members and retirees.”
In the past decade, VRS’ investment team has generated an additional $6 billion compared with a passive, indexed investment approach, Dr. Gooden said. “That added value strengthens the trust fund and helps maximize every dollar entrusted to us.”
Andrew Junkin, VRS’ chief investment officer, said this year’s results reflect an investment strategy rooted in diversification with a disciplined approach to risk management.
“Results are built over years, not quarters,” Junkin said. “Our team stays focused on the long term, balancing risk and opportunity as markets change. By combining broad diversification with active decision-making, we’ve added value across market cycles while positioning the fund to meet its obligations for decades to come.”
FY 2026 Performance by Asset Class
Major asset classes within VRS’ portfolio performed as follows:
- Public equity program returned 23.8%
- Private equity program returned 5.2%
- Real assets program returned 6.7%
- Credit strategies program returned 8.3%
- Diversifying strategies returned 7.1%
- Private investment partnerships returned 9.7%
- Fixed income program returned 5.3%
Watch VRS CIO Andrew Junkin break down this year’s return.
For more information about VRS’ investment strategy, visit varetire.org/investments.
About VRS
The Virginia Retirement System, an independent state agency based in Richmond, delivers retirement and other benefits to covered Virginia public sector employees. VRS ranks as the 15th largest public or private pension fund in the U.S. and the 36th largest in the world, serving more than 861,000 active and inactive members, retirees and beneficiaries. Members include public school teachers, political subdivision employees (cities, towns, special authorities and commissions), state agency employees, public college and university personnel, state police, Virginia law officers and the judiciary. Approximately 864 employers participate in VRS.
SOURCE Virginia Retirement System
