The Fund’s domestic cash allocation (Domestic Cash Portfolio) comprises deposits in banks and finance companies at call accounts and term deposits, with a term less than 182 days to maturity at the time of issue. As at 31 December 2018, the Fund
had around 12.3% of the portfolio in cash.
Although showing a reduction in its composition relative to the prior year as the Fund looked to move excess cash into fixed interest to capture better yields, cash levels remained high for the following reasons: (i) ongoing funding of pre-approved property development during the year. The Fund is also investigating some larger unlisted equity investments, which if they come to fruition would also absorb a component of the cash held, (ii) an inability to obtain adequate foreign exchange to further diversify the Fund’s investment into international assets as noted elsewhere.