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Research

Virginia Retirement System Sees 12.1% Return for FY 2017

Public, private equities help boost fund to historic high.

By Chris Butera

The Virginia Retirement System (VRS) posted a 12.1% return, net of fees, for fiscal year 2017, beating both the 11.8% policy benchmark and the 7% assumed rate of return, bringing the fund to a milestone $74 billion in assets.

For the period ending June 30, 2017, private and public equities—which consisted of $30.7 billion and $6.5 billion of the portfolio—returned 20.6% and 17.7%, respectively.

Real assets ($9.4 billion), returned 10.8%, followed by credit strategies ($13.1 billion) at 10.1%. The $1.8 billion strategic opportunities portfolio raked in 8.2% and fixed income ($12.4 billion) polished off the returns at 0.5%.

“In fiscal year 2017, most markets delivered robust returns,” the fund’s CIO, Ronald D. Schmitz, said in a statement. “However, we know market environments vary from year to year, and we will see returns above and below the 7% assumed rate of return. As a long-term investor, VRS focuses more closely on returns over 10-, 20- and 25-year periods and has exceeded the policy benchmarks for those periods, ending June 30, 2017.”

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VRS paid out roughly $4.5 billion in benefits to more than 199,000 retirees and beneficiaries in FY 2017.

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Home > News > Newsmakers > Dalio Steps Into Publishing With “Principles”
Newsmakers

Dalio Steps Into Publishing With “Principles”

Bridgewater Associates founder already planning second release.

By Chris Butera

Ray Dalio will be making moves in the publishing world when his first book, “Principles,” releases on September 19.

In his 600-page book, the founder of the world’s largest hedge fund, Bridgewater Associates, will reflect on the principles that granted him success in life—and innovation as an investor—in an autobiographical manner. The publisher is Simon & Schuster.

“Principles” will also offer a business manual chronicling Dalio’s steps in utilizing these principles to manage Bridgewater.

“Principles” began in 2011 when Dalio uploaded a PDF collection of earlier versions of the book that existed as internal documents within the firm for free download. He constantly shares his famous principles when asked in interviews—and in 2013, he narrated, wrote, and published “How the Economic Machine Works,” a video which shows the driving forces behind the economy and why economic cycles occur in layman’s terms. In January 2015, he published the paper in three parts: How the Economic Machine Works, Debt Cycles, and Productivity and Structural Reform. Dalio also gave a TED Talk in April regarding the future and how people in it will be able to thrive in an ever-changing world.

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“I believe in the idea-meritocratic process. I believe in specifying one’s principles clearly. I believe in radical truth and radical transparency to achieve meaningful work and meaningful relationships,” Dalio told Bloomberg Markets in a book release preview interview. “I wish it existed all over. I wish it existed in Washington. It’s the reason for our success—not me. I want to make it clear to pass it along, and then disappear.”

Dalio is also planning to release a second title with Simon & Schuster, which will focus on his closely guarded economic and investment principles. No publication date for Dalio’s sophomore book has been announced.

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