Investment performance

VFMC invests $64bn 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).

Investment returns

VFMC Investment Performance 30 June 2020

 

 

 

 

Benchmarks

VFMC has chosen benchmarks for each asset class to reflect industry standards. The total fund benchmark comprises asset weighted asset class benchmarks.

Asset Class Benchmark
Australian Equities S&P / ASX 300 Accumulation Index
International Equities 83% MSCI World IMI (Net dividends reinvested)  MSCI 17% 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.
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 $64 billion at 30 June 2020 for 31 Victorian public authorities and related organisations.

Assets Managed $ (bn)
Superannuation 24.0
Insurance 35.2
Other clients   4.7
Total  63.9*

* Data may not sum due to rounding

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