Investment performance

VFMC invests $72.1bn 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 30 June 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 $72.1 billion at 30 June 2022 for 31 Victorian public authorities and related organisations.

Assets Managed $ (bn)
Superannuation 26.1
Insurance 40.1
Other clients   5.8
Total 72.1*

* Data may not sum due to rounding

VFMC news

14 March, 2023

Kate Galvin’s interview with the Financial Standard – Walking the Walk

Chief executive of one of Australia’s largest investment managers, Kate Galvin is helping spearhead...

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20 January, 2023

VFMC Presents 2021-2022 Annual Report

Message from CEO Kate Galvin: On behalf of the Victorian Funds Management Corporation (VFMC),...

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12 July, 2022

Supporting best practice in investment risk management

VFMC recently completed its Investment Risk Uplift Project to further elevate portfolio risk capabilities...

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16 June, 2022

VFMC Welcomes New Additions to Leadership Team

VFMC welcomes the appointment of new Chief Operating Officer, Lucy Carr, and Chief Finance...

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