The VPIC asset allocation policy aims to maximize the total return on investment, within acceptable levels of risk for public retirement systems, subject to fundamental diversification and liquidity constraints. The VPIC recognizes that, over the long term, the asset allocation policy is the single greatest driver of return and risk to the VPIC portfolio. On an annual basis, the VPIC undertakes a comprehensive review of its asset allocation policy, incorporating studies of the projected cash flows needs of each of the Retirement Systems, long-term capital market expectations for asset classes, and the VPIC’s risk tolerance.