Investment performance

VFMC invests $71.6bn in funds for 31 clients across the insurance, superannuation, health, arts, education and services agencies of Victoria.

We build investment portfolios to achieve each of our clients’ long term investment objectives within acceptable risk tolerances. We aim to add value for our clients by outperforming the relevant market benchmark in each asset class and in aggregate.

Investment returns

VFMC Investment Performance 31 December 2022

 

 

 

 

Benchmarks

VFMC aims to achieve its clients’ investment objectives by outperforming the relevant market benchmark in each asset class and in aggregate. The benchmark for each asset class is set out in the table below.

Asset Class Benchmark
Australian Equities S&P / ASX 300 Accumulation Index
International Equities 66% MSCI World (Net divs reinvested) in AUD

17% MSCI Emerging Markets Index (Net divs reinvested) in AUD

17% MSCI World Minimum Volatility (USD) Index (Net dividends reinvested) in AUD
Infrastructure 75% CPI + 4.5% p.a.

25% MSCI Australia Quarterly Private Infrastructure Fund Index (Unfrozen)
Property 50% CPI + 4% p.a.

50% MSCI/Mercer Australia Core Wholesale Monthly PFI (Net) Index
Hedge Funds 50% Bloomberg AusBond Bank Bill Index + 3% p.a.

50% Hedge Funds Research Inc. (HRFI) Fund of Fund Diversified Index (AUD Hedged)
Private Credit 50% Bloomberg AusBond Bank Bill Index + 3% p.a.

25% S&P/LSTA Leveraged Loan Index (AUD Hedged)

12.5% HFRI ED – Distressed Restructuring Index (AUD Hedged)

12.5 % Merrill Lynch High Yield Master II (AUD Hedged)
Emerging Market Debt 50% JP Morgan EMBI Global Diversified (AUD Hedged)

50% JP Morgan GBI EM Global Diversified (AUD Unhedged)
Inflation Linked Bonds Bloomberg AusBond Government Inflation Linked 0+Yr Index
Australian Bonds Bloomberg AusBond Composite Bond 0+ Yr Index
US Bonds Bloomberg U.S. Treasury Hedged AUD Index
Cash Bloomberg AusBond Bank Bill Index
Other Bloomberg AusBond Bank Bill Index + 3% p.a.
Assets managed

To invest with VFMC, clients must be a Public Authority as defined under the Victorian Funds Management Corporation Act 1994.

VFMC managed investments of $71.6 billion at 31 December 2022 for 31 Victorian public authorities and related organisations.

Assets Managed $ (bn)
Superannuation 26.3
Insurance 42.7
Other clients 2.5
Total 71.6*

* Data may not sum due to rounding

VFMC news

17 July, 2023

VFMC Chairman announces resignation

Today, VFMC is announcing James MacKenzie’s retirement from his role as Chair of the...

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27 June, 2023

VFMC thanks Elana Rubin for her contribution to the Board

The Chairman of Victorian Funds Management Corporation (VFMC), James MacKenzie, announces the departure of...

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19 June, 2023

VFMC: Portfolio alignment with net zero

VFMC are thrilled and proud to be featured by the Principles for Responsible Investment...

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24 April, 2023

OMFIF Gender Balance Index 2023

For the second consecutive year, Victorian Funds Management Corporation (VFMC) has been ranked number...

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