Victorian Funds Management Corporation (VFMC)

Australia · Australia and Pacific · Founded 1994 · Sub-national permanent fund · Not an IFSWF member

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Focus

VFMC: what it invests in

Infrastructure and utilitiesReal estateFinancial services

Public equitiesFixed incomeInfrastructureReal estateHedge funds and absolute returnPrivate credit

Geography Domestic and global

Scale

VFMC: how big it is, and on what basis

AUD 95.3B

Assets under managementAs of 2025-06-30

In US dollars: about USD 62.2B. AUD 95.3 billion at the ECB rate of 1.5314 Australian dollars per US dollar on 30 June 2025.

Net return, 2024-25 11.5% (benchmark 11.2%)

Transparency

VFMC: what it publishes

8.5 of 10 Band 5 of 5

Published 8 · Partly 1 · Not published 1

Our 10 item score. It measures what is public, not how well a fund is run.

Funds under managementS3: AUD 95.3B (about USD 62.2B, June 2025); As of 2025-06-30
Latest FUMS1: AUD 103B (30 June 2026); As of 2026-07-14
Net return, 2024-25S3: 11.5% (benchmark 11.2%); As of 2025-06-30
10-year returnS3: 7.7% a year; As of 2025-06-30
ClientsS3: 31; As of 2025-06-30
Share from 4 Foundation clientsS3: About 84%; As of 2025-06-30
Transparency scoreS3: 8.5 of 10; As of 2025-06-30

At a glance. VFMC is the investment manager for the State of Victoria and its public authorities. It managed AUD 95.3 billion for 31 clients at 30 June 2025, about USD 62.2 billion, and AUD 103 billion by 30 June 2026. Four Foundation clients, ESSSuper, TAC, VMIA and WorkSafe Victoria, must invest through it and make up about 84 percent of the money. S3 S1 S5

Key points

Foundation clients earned a net 11.5 percent in 2024-25 against an 11.2 percent benchmark. S3
Ten-year net return of 7.7 percent a year, against a 7.4 percent benchmark. S3
International equities are the largest strategic weight at 29.7 percent, with infrastructure and property at 11 percent each. S3
Funds under management grew by AUD 8.4 billion in 2024-25. S3
Mixes in-house teams with outside managers, using internal management only where it expects better net results. S3
VFMC does not publish holdings or individual deals. S3
Paid a dividend of AUD 5.9 million to the State from a post-tax surplus of AUD 8.1 million in 2024-25. S3

Interesting facts

Its 31 clients range from insurers and a public pension scheme to hospitals, arts bodies and the state's zoos. S3
It logged 334 ESG engagements across asset classes in 2024-25. S3
Its Chief Executive joined the board of the International Centre for Pension Management in July 2026. S1

Mandate and goals

Manage money for the State of Victoria and its public bodies on commercial, efficient and competitive terms, with the aim of strong and steady long-term returns. S3

Pool client money so authorities do not each build costly investment teams. S3
Beat client benchmarks after fees, which lowers the funding the State must provide. S3
Pay dividends from its surplus to the State. S3
Deliver the four-year Elevate to 28 strategy launched in 2024-25. S3

How it invests

Industries	Infrastructure and utilities, Real estate, Financial services. Sector agnostic S3
Asset classes	Public equities, Fixed income, Infrastructure, Real estate, Hedge funds and absolute return, Private credit, Cash and money markets S3
Stages	Public markets, Infrastructure, Real estate, Credit S3
Geography	Domestic and global. Australian and international markets; no country split is published S3
Direct / through funds / co-invest	Yes / Yes / Not published S3
Ticket size	No ticket size is published. S3
External managers	Uses external fund managers alongside internal teams; managers are not named S3
Co-investment programme	Not published S3

Asset mix: International equities 29.7%, Australian equities 15.2%, Infrastructure 11.0%, Property 11.0%, Private credit 10.0%, Hedge funds 8.9%, Cash 4.0%, Inflation-linked bonds 3.5%, Australian bonds 2.6%, Emerging markets debt 2.1%, US bonds 2.0% (as of 2025-06-30) S3

Published criteria

Foundation client allocations are set in investment risk management plans approved by the Treasurer of Victoria. S3
Internal management is used only where VFMC expects better risk-adjusted returns after fees. S3

Past investments

The fund has not published a list of investments.

Case studies

The Centralised Investment Model S3

What: Four state bodies, ESSSuper, TAC, VMIA and WorkSafe Victoria, are required to invest through VFMC as Foundation clients.
When: Ongoing
Size: About 84 percent of AUD 95.3B
Why: Pooling removes the cost of each authority building its own investment team.
Outcome: 11.5 percent net in 2024-25 and 7.7 percent a year over ten years, ahead of benchmarks.

Elevate to 28 S3 S1

What: A four-year plan to upgrade technology, structure and people.
When: Launched 2024-25
Size: Not published
Why: To keep delivering for the State as funds grow past AUD 100B.
Outcome: Funds reached AUD 103B by June 2026.

Investment process

An independent Board, appointed by the Governor in Council with the Chair chosen by the Treasurer, oversees VFMC. Client asset allocations follow investment risk management plans that the Treasurer approves; management runs the portfolios. S1 S3

Committee	Role
Board of Directors	Independent board overseeing strategy, risk and performance S3

Clients and the Treasurer agree an investment risk management plan and strategic asset allocation. S3
VFMC runs the money through pooled funds, using in-house teams and external managers. S3
Results are reported against benchmarks in the annual report and performance updates. S3 S6

How to approach: VFMC serves Victorian public authorities only, through its Client Connect area. There is no channel for private investors. S1

Size and returns

Headline size: AUD 95.3B (Assets under management, as of 2025-06-30) S3 S5
In US dollars: about USD 62.2B. AUD 95.3 billion at the ECB rate of 1.5314 Australian dollars per US dollar on 30 June 2025.
Funds under management, 30 June 2026: AUD 103B (about USD 70.9B) (Assets under management, as of 2026-06-30) S1 S7
Funds under management, March 2026: AUD 97.1B (Assets under management, as of 2026-03-31) S6
Return, 2024-25: 11.5 percent (Foundation CIM clients, net; benchmark 11.2) S3
Return, 3 years: 10.2 percent a year (benchmark 10.1) S3
Return, 5 years: 8.9 percent a year (benchmark 8.3) S3
Return, 10 years: 7.7 percent a year (benchmark 7.4) S3
Size over time (AUD billion): 2024-06 86.9, 2025-06 95.3, 2026-03 97.1, 2026-06 103 S1 S3 S6

Leadership

Name	Title	Since
Lisa Gay	Chair S3	2023-11
Tom Considine	Deputy Chair S3	Not published
Kate Galvin	Chief Executive Officer S4	2021-10
Russell Clarke	Chief Investment Officer S3	2017-05
Lucy Carr	Chief Operating Officer S3	Not published
Paul Shanley	Chief Finance and Risk Officer S3	Not published

Governance and transparency

Legal basis: Victorian Funds Management Corporation Act 1994 S1
Oversight: Reports to Parliament through its annual report under the Financial Management Act 1994; risk plans approved by the Treasurer S3
Runs an independent internal audit function as a third line of defence. S3
Not an IFSWF member. S2

Transparency score: 8.5 of 10 (band 5 of 5). Our own 10-item rubric; see the methodology page.

Published: total assets, annual return, long-term returns, asset allocation, audited financial statements, governance and mandate documents, named leadership, regular reporting schedule. S3 S4 S6
Partly published: geographic or sector split. S3
Not published: holdings or deal list. S3

History

Date	Event
1994	VFMC established under its 1994 Act. S1
2017-05	Russell Clarke joins as Chief Investment Officer. S3
2021-10	Kate Galvin joins as Chief Executive. S4
2023-11	Lisa Gay becomes Chair. S3
2025-06-30	Elevate to 28 strategy starts; FUM AUD 95.3B at year end. S3
2026-05	Board member Fiona Trafford-Walker steps down. S8
2026-06-30	FUM reaches AUD 103B. S1

For family offices

VFMC manages money only for Victorian public authorities and the State, and publishes no co-investment or partner programme. Outside firms mainly meet it as external fund managers. S1 S3

External managers in equities, credit, hedge funds, infrastructure and property can be hired for client pools. S3

Reports

Annual report 2024-25: https://www.vfmc.vic.gov.au/wp-content/uploads/2025/10/VFMC-Annual-Report-2024-25.pdf S3
Investment performance updates: https://www.vfmc.vic.gov.au/our-impact/investment-performance/ S6

Common questions

How big is VFMC?

AUD 95.3 billion at 30 June 2025 (about USD 62.2 billion) and AUD 103 billion at 30 June 2026. S3 S1

Who runs VFMC?

Kate Galvin is Chief Executive and Russell Clarke is Chief Investment Officer; Lisa Gay chairs the board. S4 S3

What returns does VFMC make?

11.5 percent net for Foundation clients in 2024-25 and 7.7 percent a year over ten years. S3

Whose money does it manage?

31 Victorian public sector clients, led by ESSSuper, TAC, VMIA and WorkSafe Victoria, plus the Victorian Future Fund. S3

Is it an IFSWF member?

No. S2

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All sovereign wealth funds in Australia and Pacific · All sub-national permanent funds · All funds in Australia

Sources

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