|Insight Sep 2016||Insight June 2016|
|Insight March 2016||Insight Dec 2015|
The funds in the APSS are divided into two investment portfolios:
Member Savings are allocated between these two portfolios. The defined benefit assets are invested in the 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 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.