Supporting best practice in investment risk management
VFMC recently completed its Investment Risk Uplift Project to further elevate portfolio risk capabilities...read article
VFMC invests $69.4bn 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. Generally, over the longer term, client portfolios are designed to deliver absolute returns in the order of 3-4% pa above the Consumer Price Index (CPI).
VFMC has chosen benchmarks for each asset class to reflect industry standards. The total fund benchmark comprises asset weighted asset class benchmarks.
|Australian Equities||S&P / ASX 300 Accumulation Index|
|International Equities||83% MSCI World (Net dividends reinvested)
17% MSCI Emerging Markets Index (Net dividends reinvested)
|Infrastructure||CPI + 5% p.a.|
|Property||25% CPI+4% p.a. + 75% MSCI/Mercer Australian Core Wholesale Monthly Pooled Fund 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|
|Australian Bonds||Bloomberg AusBond Composite Bond 0 +Yr Index|
|US Bonds||Bloomberg Barclays US Treasury Index (AUD Hedged)|
|Cash||Bloomberg AusBond Bank Bill Index|
|Insurance||Bloomberg AusBond Bank Bill Index + 3% p.a.|
|Private Equity||Bloomberg AusBond Bank Bill Index + 3% p.a.|
To invest with VFMC, clients must be a Public Authority as defined under the Victorian Funds Management Corporation Act 1994.
VFMC managed investments of $69.4 billion at 31 December 2020 for 31 Victorian public authorities and related organisations.
|Assets Managed||$ (bn)|
* Data may not sum due to rounding
VFMC welcomes the appointment of new Chief Operating Officer, Lucy Carr, and Chief Finance...read article
VFMC is saddened by the recent passing of financial innovator and respected former VFMC...read article
The Victorian Funds Management Corporation (VFMC) has announced the appointment of former Chief Executive Officer, Ms Lisa Gray to the Board of VFMC effective 1 January 2022. In her...read article