Established in 1994, the Victorian Funds Management Corporation (VFMC) is a Sovereign Wealth Fund responsible for managing the long-term investments of Victorian State Government entities. The fund invests in a diverse range of assets in Australian and international markets, using internal and external investment managers. As of June 30th, 2018, VFMC had over US$ 43 billion of funds under management.
VFMC considers that organizations that effectively manage material ESG issues improve risk adjusted returns. As such, the firm's investment process excludes Tobacco and cluster munitions producers. Additionally, VFMC integrates ESG factors in their internally managed portfolio and their external manager selection process. VFMC is an active owner, as such, the firm votes all of its proxies, and engages directly or collaboratively with portfolio companies on issues such as enhanced disclosure of climate change risk. Finally, the Sovereign Wealth Fund actively seeks opportunities to expand its understanding of material ESG issues by maintaining active membership of ESG-related organizations such as the UN PRI and the Investor Group on Climate Change (IGCC).