The Cash Portfolio plays a very important role within the Fund. It provides not only stability for the portfolio but also liquidity and risk balance through diversification benefits relative to other riskier asset classes. The Cash Portfolio is primarily managed internally and the Fund’s exposure to cash is determined by APFC’s liquidity needs, time horizon, and risk tolerance given the market environment.


$1.0 B Cash

as of June 30, 2023

2% Cash

FY24 Target Asset Allocation



Cash investments play an important 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.


The objective of the Total Fund Cash portfolio is to:

a. Be a source of funds available to meet the Fund's operation needs, including capital calls and appropriations from the Earnings Reserve Account to the State's general fund; and

b. 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 will 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 the board meeting packets.