WHO WE ARE

APFC is a state-owned corporation, based in Juneau, that manages the assets of the Alaska Permanent Fund and other funds designated by law, such as the Alaska Mental Health Trust Fund.

Our vision is to deliver OUTstanding returns

for the benefit of all current and future generations of alaskans

Total Fund Value

as of June 30, 2021

$81,098,900,000

Principal Total $60.1 Billion | ERA Total  $21.0 Billion

Principal

$60.1 B

Contributions: $46.9 B | Unrealized Gains: $13.2 B

ERA Uncommitted

$9.3 B

+ Committed FY22 POMV $3.1 B + Unrealized Gains $4.6 B + FY22 Special Appropriation $ 4.0 B = Total of $21.0 B

Value Added

AS OF June 30, 2020

$3.1 B

VS PASSIVE BENCHMARK OVER 5 Years

Rate of Return

FYTD AS OF May 31, 2021

FYTD 2021 26.46%

11.62 % OVER 5 YEARS

Looking Ahead at Fiscal Year 2022 July 6, 2021

July 1, 2021, marked the start of APFC’s 2022 Fiscal Year. As we set forth into the new Fiscal Year, following the timely resolution of the state’s operating budget, we recognize the commitment and continued professionalism of APFC staff who have been working diligently to support our fellow Alaskans. APFC remains fully operational and we continue to actively manage the assets of the Permanent Fund, identifying and acting on compelling investments to deliver on our mandate of generating outstanding returns for the benefit of all current and future generations of Alaskans.

Along with the start of the new Fiscal Year is the adjustment of asset allocations to fit within the targeted ranges established by the Board of Trustees every 5 years. This shift of assets across the Fund’s 8 asset classes includes 1 percent decreases in Public Equities and Fixed income investments, while increasing investments in Real Estate and Private Equity by 1 percent. The other asset classes are targeted within the same allocations through FY25. The total portfolio mix is intended to represent the expectations of the Board’s long-term vision while conforming to their approved risk appetite for the Fund.

As the Principal of the Fund is protected constitutionally, the Earnings Reserve Account is available for legislative appropriation. State Legislature has an established Percent of Market Value formula for sustainable withdraws from the Fund set at 5 percent annually.

A $3.1 Billion POMV draw will be transferred to the State of Alaska during FY22, which represents the primary revenue source for the state. Revenue generated by Permanent Fund investments now constitute more than 70% of the state’s general fund – meaning that 70 cents of every 1 dollar spent on education, public safety, transportation and other essential services and programs comes from the Fund’s earnings.

 

 


Fund News


Fund News

Looking Ahead at Fiscal Year 2022 July 6, 2021

July 1, 2021, marked the start of APFC’s 2022 Fiscal Year. As we set forth into the new Fiscal Year, following the timely resolution of the state’s operating budget, we recognize the commitment and continued professionalism of APFC staff who have been working diligently to support our fellow Alaskans. APFC remains fully operational and we continue to actively manage the assets of the Permanent Fund, identifying and acting on compelling investments to deliver on our mandate of generating outstanding returns for the benefit of all current and future generations of Alaskans.

Along with the start of the new Fiscal Year is the adjustment of asset allocations to fit within the targeted ranges established by the Board of Trustees every 5 years. This shift of assets across the Fund’s 8 asset classes includes 1 percent decreases in Public Equities and Fixed income investments, while increasing investments in Real Estate and Private Equity by 1 percent. The other asset classes are targeted within the same allocations through FY25. The total portfolio mix is intended to represent the expectations of the Board’s long-term vision while conforming to their approved risk appetite for the Fund.

As the Principal of the Fund is protected constitutionally, the Earnings Reserve Account is available for legislative appropriation. State Legislature has an established Percent of Market Value formula for sustainable withdraws from the Fund set at 5 percent annually.

A $3.1 Billion POMV draw will be transferred to the State of Alaska during FY22, which represents the primary revenue source for the state. Revenue generated by Permanent Fund investments now constitute more than 70% of the state’s general fund – meaning that 70 cents of every 1 dollar spent on education, public safety, transportation and other essential services and programs comes from the Fund’s earnings.

 

 


  • Ten years after Alaska achieved statehood, oil was discovered on the North Slope, which led to Alaskans voting to create a Permanent Fund to invest oil proceeds for future generations. The first deposit was $734,000. After 40 years of wise management, APFC has grown the Permanent Fund to more than $70 billion. Want to know how we did it?

  • The Permanent Fund has two parts: the Principal and the Earnings Reserve Account (“ERA”). Both are invested together using the same asset allocation, but they are very different in how they can be used by law: the Principal is permanent savings, the ERA is available to spend.

  • APFC is a team of financial and legal professionals. It operates as a separate state entity under the oversight of an independent, professional Board of Trustees, who serve as fiduciaries of the Fund. The Board sets investment policy, reviews the portfolio’s performance, and works with management to determine APFC’s strategic direction.

  • It’s the APFC’s job to prudently manage the assets of the Alaska Permanent Fund. Our staff of professionals works with a team of international managers to invest the Permanent Fund’s billions across eight asset classes in both private and public markets. Under APFC’s stewardship, the Permanent Fund is recognized as one of the best-managed sovereign wealth funds in the world – well poised to serve Alaskans now and for many decades to come.

  • The Permanent Fund has largely replaced oil as a source of unrestricted revenues for our state government, which means it is more important to Alaskans than ever. We are pleased to present this booklet, which offers the basics of the Alaska Permanent Fund, its history, how APFC manages and invests these assets, and its essential role in Alaska's future.

  • Learn about APFC’s strategies, investments and people in the 2020 Annual Report.

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BONDS

The Fixed Income Plus portfolio acts as an anchor to the Fund and is comprised of Bonds, Emerging Market Debt, TIPS, REITs, and Listed Infrastructure. During volatile market cycles, these assets provide stability and a source of liquidity to take advantage of market dislocations. Trading is…read more