Supporting the Fund’s Liquidity Needs
Cash
The Cash portfolio serves a critical role within the Fund by providing stability, liquidity, and diversification benefits that help balance the risks of other, higher-risk asset classes. Primarily managed internally, this portfolio supports the Fund’s overall investment strategy by ensuring sufficient cash availability for operational needs and capital commitments while contributing to the resilience and risk-adjusted performance of the broader investment portfolio over the long term.
At a Glance
Key Portfolio Figures
1.0%
FY26 Target Allocation
$2.0 B
As of June 30, 2025
Cash Portfolio Objectives
Performance
The objective of the Total Fund Cash portfolio is to:
- Be a source of funds available to meet the Fund's operational needs, including capital calls and appropriations from the Earnings Reserve Account to the State's general fund; and
- Allocate a small portion of the Fund to an asset class that is nearly risk-free and experiences extremely low volatility.
Performance of this portfolio will be evaluated quarterly and be measured against the risk and after-fee return of the 90 Day Treasury Bills Index, but success in achieving the long-term objective will be measured, net of all costs and fees, on a one-year, three-year, five-years, and ten-year annualized basis.
Performance reports for the portfolio can be found in the monthly performance reports and in board meeting packets.
Strategy and Focus Area
Cash Portfolio Mandate
Cash investments play an essential role within a well-diversified investment portfolio and serve several purposes, including protection against potential future increases in inflation, stability for the portfolio, liquidity, and diversification benefits relative to other assets. Cash, the most liquid security, generally represents money market investments or fixed income securities with weighed average maturities of no greater than 24 months adding stability and diversification relative to other asset classes. The amount of cash held is determined by APFC’s investment goal, time horizon, risk tolerance, and liquidity needs. Cash is benchmarked to the 3-Month T-Bills.