The Victorian Funds Management Corporation Act 1994 established VFMC as a body corporate governed by an independent Board of Directors whose members are appointed by the Governor in Council.

The Act specifies that VFMC is subject to the general direction and control of the Treasurer and that any directions must be consistent with the objectives of the corporation as specified in the Act. These objectives are that VFMC provides investment and funds management services to Victorian public authorities in a commercially effective, efficient and competitive manner.

Directions may relate to corporate performance measures but must not be in relation to an investment decision, dealing with property or the exercise of a voting right. Any direction must be published in the Government Gazette and VFMC Annual Report.

Board

Executive Leadership Team

Investment Leadership Team

The VFMC Act 1994 specifies that the Board is responsible for the management and affairs of VFMC, and may exercise its powers including power of delegation.

Under the Act, the Board must have at least four but no more than nine members. Directors are appointed by the Governor in Council with the Chair and Deputy Chair appointed by the Treasurer. Directors are appointed for terms not exceeding three years and are eligible for reappointment.

The Board’s role is to provide overall strategic guidance for VFMC and effective oversight of management.

It must ensure that VFMC fulfils its objectives and functions, and that its activities comply with the VFMC Act 1994.

The Board is responsible for:

• Appointing the CEO and corporation secretary
• Providing input into and final approval of the corporate plan, investment philosophy and approach, client investment risk management plans and development of new investment products or strategies that involve the approval of the Treasurer
• The oversight of VFMC including control and accountability systems
• Reviewing and approving financial reports and monitoring financial results on an ongoing basis
• Reviewing and approving all certifications provided for DTF and clients
• Monitoring the performance and implementation of corporate strategy by senior management
• Monitoring the investment performance of the corporation

The Board has two standing committees – the Audit, Risk and Compliance Committee and the People Committee.

The Board has delegated power to the CEO and management to achieve VFMC’s objectives and perform its functions.

read Board Charter

VFMC has powers conferred on it by the Borrowing and Investment Powers Act 1987. Broadly, this allows VFMC to acquire assets and invest money.

The Financial Management Act 1994 (FMA) sets out the financial management accountability, reporting and financial administration obligations of the State Government and the Victorian public sector. The obligations in the FMA are supported by the Standing Directions of the Minister for Finance along with the mandatory Instructions.