• Judith Fiander, CEO addressed the recent news that the Australian government plans to increase the minimum distribution rate for ancillary funds to 6%, though the change is unlikely to take effect until FY2029/30 (at the earliest) for existing ancillary funds and the APS Foundation already gives over 6%. Judith highlighted the expansion of new community charities aimed at encouraging place‑based local giving. APS will update our clients as more information becomes available.
• APS Foundation reaffirmed its commitment to long‑term stewardship of the more than $455 million under management.

APS Foundation – Focused portfolio

• David Wright outlined global ESG and responsible investment trends influencing current and future positioning. He described major themes such as the accelerating energy transition – electrification, wind and solar; tightening ESG regulations in Europe and reduced tolerance for greenwashing; increasing integration of climate‑related financial risk into corporate reporting and strong investment into energy, transport, water and digital infrastructure.
• David highlighted some investment strategy moves including reducing cash holdings, diversifying fixed income further, and exploring the inclusion of private assets exposure and long/short equity funds to navigate ongoing market volatility, and growing the fund to maximise diversification.

APS Foundation – General portfolio

• Chris Cuffe emphasised the unique features of APS Foundation investing: long‑term horizons, consistent inflows, tax‑free status, and a highly diversified portfolio spanning equities, private markets, infrastructure and venture capital. Chris addressed the challenges of navigating inflation trends, interest‑rate uncertainty, volatile US equity valuations, and the impact of AI disruption on global markets. The diversified nature of the portfolio positions it well.
• Chris does not foresee any need to materially adjust the fund’s investment objective, even with the higher 6% requirement.
• Even with recent market softness, Chris confirmed the General Portfolio continues to exceed its long‑term CPI+4% return target and remains well‑positioned to continue delivering strong, stable returns for the charitable sector.
• We are extremely grateful for the support received from respected fund managers who provide their investment services pro bono or low bono.