VRS Moving Down Domestic Stock Allocations

May 21, 2004 (PLANSPONSOR.com) - Virginia's state employees' public retirement fund is pulling back on its domestic equity allocation.

The $38.1 billion Virginia Retirement System (VRS) has approved a 10% reduction in the portfolio’s domestic equity holdings.   VRS is making the move out of domestic stocks to allocate additional funds to bonds, foreign stocks, real estate and high-risk instruments to raise the cash that covers monthly checks for retired public workers, according to a Richmond Times-Dispatch report.

VRS’ decision is the culmination of 13 months of portfolio revising conducted by the nation’s 30 th -largest pension fund. Once the allocation shifts, U.S. , foreign and private-issue stocks will make up 66% of VRS’ total holdings, down from 71% prior to the change.

However, other asset classes will see an increase of funds.  Bonds will account for 23% of the fund’s portfolio, up from 22%.   Additionally, real estate’s allocation will grow from 4% to 6% and hedge funds, from 3% to 8%.

VRS providesbenefits to almost 109,000 retirees and covers 311,000 active members.