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.