The Fund’s Anchor
Fixed Income
Fixed Income serves as an anchor for the Fund, generating more stable returns than other asset classes. During volatile market cycles, assets such as corporate and government bonds provide stability and a source of liquidity to take advantage of market dislocations. The Fixed Income portfolio is managed completely in-house, with direct access to all major domestic and foreign banks, corporate, government, and treasury markets.
At a Glance
Key Portfolio Figures
$17.2B
As of June 30, 2025
12,500
Trades Executed Over Last 5 Fiscal Years
20%
FY26 Target Allocation
Fixed Income's Objectives
Performance
The performance of the tradable income portfolio over a market cycle shall be measured against the following objectives:
- Total returns commensurate with the level of total risk taken in the portfolio so as to fulfill the role of tradable income in the Fund’s asset allocation policy; and
- Risk-adjusted returns measured using standard industry metrics such as the Sharpe ratio or information ratio that are enhanced relative to the tradable income portfolio’s assigned benchmark.
- Total returns relative to the total returns of the assigned benchmark.
Performance reports for the portfolio can be found in the monthly performance reports and in the board meeting packets.
Strategy & Focus Area
Fixed Income Mandate
The portfolio is entirely internally managed. The portfolio’s investment philosophy is to make targeted, high conviction macro bets when market dislocations occur while also taking advantage of daily technical factors that present relative value opportunities. The team believes that reversion to the mean is a powerful force in the fixed income market and has proven that with a disciplined process and proper risk controls, APFC can outperform our index over different market cycles.