The Public Equities allocation is comprised of US, International and Global Stocks. The portfolio is actively structured to perform well in a variety of market environments, including positively trending equity markets and weaker market environments. The components of this structure include asset allocation, external manager selection, and internal management of equities.
KEY PORTFOLIO FIGURES
as of June 30, 2018
Countries Represented in Stock Holdings
APFC Public Equities allocation decisions are both strategic (long term) and tactical (intermediate term) and are based on long term expected returns, valuation, fundamentals, and macroeconomic trends. Asset allocation decisions are made across market segments such as:Geographic - domestic vs. internationalSectors - cyclical vs. defensiveSize - large cap vs. small capStyle - value vs. growth
We implement our asset allocation decisions predominantly through external fund managers across active, quasi passive strategies, and passive strategies. A small but increasing part of our allocation is also managed internally, currently, through exchange traded funds (ETFs).
The performance of the total public equity portfolio over a market cycle shall be measured against the following objectives:
- Total returns commensurate with the level of total equity risk taken in the portfolio so as to fulfill the role of public equities 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 total public equity portfolio’s assigned benchmark.
- Total returns relative to the total returns of the assigned benchmark.