Investment performance

VFMC invests over $80bn 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 Dec 2023

 

 

 

 

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 dividends reinvested) in AUD

17% MSCI Emerging Markets Index (Net dividends 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)

Australian Credit Bloomberg AusBond Bank Bill Index
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 Index 0+ Yr Index
Australian Bonds Bloomberg AusBond 0+ Yr Composite Index
US Bonds Bloomberg Barclays US Treasury Index (AUD Hedged)
Enhanced Income Bloomberg AusBond Bank Bill Index
Cash Bloomberg AusBond Bank Bill Index
Other Strategies 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 $73.7 billion at 30 June 2023 for 31 Victorian public authorities and related organisations.

Assets Managed $ (bn)
Superannuation 27.1
Insurance 43.7
Other clients 2.8
Total 73.7*

* Data may not sum due to rounding

VFMC news

James MacKenzie awarded Order of Australia

VFMC would like to congratulate our former Chair, James MacKenzie AO who was made...

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VFMC Announces Board appointments

VFMC Announces Board appointments The Chair of Victorian Funds Management Corporation (VFMC), Lisa Gay,...

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Lisa Gay appointed as new VFMC Chair

  Lisa Gay appointed as new VFMC Chair   The Treasurer of Victoria, Tim...

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VFMC supports Lighthouse Foundations, Australia’s first social loan.

VFMC was featured in an article in the Australian Financial Review Lighthouse gets $130m...

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