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Investment strategy

The funds in the APSS are divided into two investment portfolios:

  • Market Return Portfolio 
  • Cash Portfolio. 

Member Savings are allocated between these two portfolios. The defined benefit assets are invested in the Market Return Portfolio.

Investmant Structure

Market Return Portfolio

The Market Return Portfolio is a diversified portfolio of assets that are invested mainly for the long term. The Trustee’s investment strategy for the Market Return Portfolio involves making allocations between classes of the world’s financial assets that have different degrees of financial risk (and therefore, different levels of expected return) and ensuring that each allocation includes a wide array of financial assets in that asset class to reduce the overall impact if some investments fail. The investment strategy for Market Return Member Savings and the defined benefit assets consists of target allocations to four asset classes shown in the table below:

Asset Class Target Allocation Normal range*
Public Market Shares 40% 20 - 60%
Private Market Assets^ 30% 20 - 60%
Other Growth Assets 0% 0 - 20%
Bonds 20% 10 - 30%
Cash 10% 0 - 20%

* The actual asset allocation is normally expected to go up or down within these ranges over time. If it moves outside the normal ranges, the Trustee will take prudent and commercially responsible steps to re-balance to the target allocation.

^ Private Market Assets include private equity, property, infrastructure and private debt. Remember, the Trustee is progressively scaling down the Private Markets Assets in the Market Return Portfolio towards the target allocation.


Cash Portfolio

The Cash Portfolio is invested separately from the Market Return Portfolio.
It may include bank deposits or bills and short-term interest-bearing securities
with very high credit quality. These may be held directly or through a managed investment trust. The target asset allocation for this portfolio is 100% cash.

View the actual asset allocation for the Market Return and Cash Portfolio's here