AUSTRALIA - The A$36.1bn ($38.6bn)Victorian Funds Management Corporation (VFMC) has reported overall of 3.63% Q1 and an annual return of 8.43%.
The fund's private equity portfolio posted the highest return of all asset classes, with 8.24% on assets, representing 3.5% of the overall fund's investments.
Australian equities, which capture 20.2% of AUM, saw a 3.59% return and international equities, with 33.3% of AUM, saw returns of 4%. The fund beat its quarterly benchmark of 3.17% and its one-year return benchmark of 7.17%.
"Equity markets ended the quarter very strongly as investors refocused on the continuing improvement in the US and global economies, attractive absolute and relative valuations post the correction in the first half of March and fading deflation risk," VFMC said in its quarterly performance report.
"These factors outweighed concerns about the political unrest in the [Middle East and North Africa] region and the earthquakes and floods in the Asia-Pacific region."
However, the fund still lags on its three year and five year benchmarks - the fund has returned 1.94% p.a. over the past three years, versus a benchmark of 2.87%, and has returned 2.85% over the past 5 years, versus a benchmark of 3.72%.
Separately, the VFMC confirmed the hiring of Toby McMillan as senior property analyst. Reporting to Pete King, McMillan will provide valuation and due diligence skills over the fund's property allocation, which represents 7.1%, or A$2.56bn of the fund's total AUM. McMillan comes to VFMC from Jones Lang LaSalle.
VFMC provides investment and funds management services to Victorian public authorities.
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