Looking to the Future
To Meet Known Obligations

As we look toward the future, an inherent risk we face with the two-account structure is the availability of spendable funds in the ERA to fully meet the obligations of:

  • The Percent of Market Value (POMV) draw for the General Fund to support the dividend program and government services.
  • Inflation Proofing Inflation proofing to maintain the purchasing power of the Principal.

Based on the two-account structure, spendable amounts are limited to what is available in the ERA. The ERA is the primary source of revenue for Alaska today and for inflation proofing to ensure that the Principal maintains its purchasing power for intergenerational benefit.

    The Alaska Permanent Fund Corporation generates investment revenue to support Alaska today and tomorrow.

    Under APFC’s stewardship, the Permanent Fund has become a key renewable financial resource for Alaskans, with the yearly 5% POMV draw providing more than 55% of Alaska’s general fund revenue stream.

    Beyond the Numbers: What Key Financial Statements Mean for AlaskansAPFC Press Release on June 30 & July 1, 2024, Fund Values
    Understanding our FundInfographic - Updated to include July 30, 2024, Fund Values
    Understanding our Fund - July 2024 EducationPresentation

    Fund Values
    Fiscal Year Transition

    Fund values represented below show the Fund just two days apart - June 30 and July 1, 2024. The transition between FY24 and FY25 highlights key financial values and critical processes to support the state and the Fund's intergenerational benefit. 

    Chart.js Donut Charts

    End of FY24

    Audited
    Fund Values
    as of June 30, 2024

    FY25

    Unaudited
    Fund Values
    as of July 31, 2024

    Final, audited fund values at the end of FY24 (as of June 30, 2024) based on the June 30, 2024 financial statements.

    • FY24 Inflation Proofing of $1.4B was moved to the Principal at the end of FY24 on June 30, 2024, to support intergenerational purchasing power of the Fund.

    The realized earnings generated from investment activity amounted to $4.2 billion in FY24, and this statutory net income (SNI) has been continuously deposited into the ERA over the course of the fiscal year.

    Fund Values one month into FY25 (as of July 30, 2024) based on the July 30, 2024, Fund Balance Report demonstrates key shifts in the Fund.

    As of July 31, 2024:

    The FY25 Inflation Proofing amount of $1 billion, as appropriated by the Legislature, has been committed (or "set aside") for this requirement as of July 31, 2024. 

    As of July 1, 2024:

    • FY 25 POMV Draw – $3.7 billion is available to support FY 25 Budget – under liabilities as of July 1, 2024, the beginning of FY25.
    • FY 26 POMV Draw – $3.8 billion of realized earnings in the ERA was committed on July 1, 2024, the beginning of FY25, to support the State of Alaska's FY26 Budget.
    • FY25 Inflation Proofing - $571.7 million (a portion of the inflation proofing appropriation) was committed on July 1, 2024, the beginning of FY25.

    Stable State Revenue 

    POMV Draw

    The Earning Reserves Account (ERA) is a critical source of revenue for Alaska. The earnings of the Permanent Fund has become a key renewable financial resource for Alaskans with the 5% Percent of Market Value (POMV) draw providing more than 55% of Alaska’s general fund revenue stream.

    Benefit Future Generations

    Inflation Proofing

    APFC’s stewardship of the Fund benefits all generations of Alaskans. Under the two-account structure, the Principal's intergenerational purchasing power is maintained through inflation-proofing appropriations from the ERA.

    Update as of July 31, 2024:

    At the start of the fiscal year, APFC allocated $571.7 million a portion of the necessary amount, and in the first month of FY25, APFC earned $576 million in statutory net income (SNI). Of those earnings, $428.3 million has been allocated to the inflation proofing requirement, bringing the total committed amount to the $1 billion needed.

    The remaining realized $143 million remains uncommitted in the ERA. The ERA grows through the receipt of SNI which is generated based on the portfolio’s investment activity.

    the "Two-Account" Structure

    $72.2B Principal & $6.1B in the ERA
    as of June 30, 2024

    The Principal account is used solely for investing in income-producing assets.

    The Earnings Reserve Account (ERA) holds the net realized income, defined as statutory net income, and is available for legislative appropriation.

    Under this structure, appropriations are limited to the ERA balance.

    • Today, more than 55% of the state’s general fund revenue is funded by legislatively approved draws from the ERA.
    • The FY25 POMV draw of $3.7 billion is available to support the State’s current FY25 budget.