Asset management

Over time, the Second AP Fund deems that some 90 percent of its return derives entirely from market exposure of its strategic benchmark, the remaining 10 percent being generated through active portfolio management. 

The reason the Second AP Fund complements direct market exposure with active management derives from its brief to maximize return while maintaining a low level of risk. This strategy is also based on the Fund’s perception of how capital markets function and on the potential for generating portfolio returns. This strategy has been formulated in a number of ‘Investments Beliefs’, which are described in the Second AP Fund’s annual report.