NEWS

VRS finds opps in RA, diversifying strategies and credit

By Muskan Arora

The $116.1bn Virginia Retirement System disclosed new commitments worth $737.5m within its credit strategies, diversifying strategies and real assets portfolio.

The outperformance of the credit strategies for 1-year return at 11.6% against a target of 11.1% gave the pension plan to make the biggest commitment of the previous month to the sleeve.

VRS committed $500m to Apollo Libra, a closed-end fund focused on opportunistic credit.


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As of October 8, the allocation to credit strategies was at 15.4% against a target of 14%.

With the real assets sleeve, the pension plan committed $200m to AMLI Residential III, a joint venture with an experienced apartment operator focused on core, class A properties in select target markets in the U.S.

VRS allocates 12.4% to its real assets sleeve, against a target of 14%, as of October 8.

The real assets sleeve had a negative return of -2.9% against a benchmark of -4.9% for its 1-year return.

The pension plan noted an underperformance in the diversifying strategies sleeve with the 1-year return being at 7.8% against a benchmark of 9.5%.

This ignited the commitment of $37.5m to NISA Alpha Strategies, a multi-asset absolute return strategy.

As of October 8, the actual allocation to diversifying strategies is at 3.3% against a target of 4%.