By Muskan Arora
For 2025, CIO Andrew Junkins of the $117bn Virginia Retirement
System has widened its target allocation for its credit strategies portfolio as
opposed to what was approved earlier this year.
With an initial approval by the board, the target allocation
to credit strategies portfolio stood at 14%, with a target range of 7% to 21%.
However, the updated target is at 15%, with a range of 8% to 22%, effective from January 1.
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“However, market action or Fund liquidity needs could cause the Strategic Asset Allocation Leverage to be temporarily above the limit,” stated the meeting materials.
Further, in the meeting, the system disclosed its last month’s
commitments of $175m to two real assets commitments and $150m to its exposure
management portfolio.
VRS returned 14.4%, 5% and 8.7% for its 1-,3- and 5-year
period against a benchmark of 17.1%, 3.9% and 7.4%, as of October 31.
The system allocated $150m to Pretium Homebuilder Finance
Fund, debt strategy investing in residential transition and homebuilder
finance loans.
Within its real assets sleeve, the system made the first
allocation of $125m to Artemis Income & Growth Fund II, closed-end
fund investing in diversified, core-plus real estate in the U.S.
Remaining $50m were allocated to Artemis Income &
Growth Fund II Separate Account, which is focused on investing with
smaller, real estate fund managers in the U.S.
The system allocates $14.5bn or 12.4% to its real assets
sleeve against a target of 14%, as of December 4.
