INVESTING FOR ALASKA

INVESTING FOR THE LONG RUN

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 sustained

and compelling investment returns

Assets Under Management

UNAUDITED AS OF May 31, 2018

$65.4 B

Principal $46.7 BILLION | ERA $18.7 BILLION

Value
Added

AS OF June 30, 2017

$4.4 B

VS PASSIVE BENCHMARK OVER 3 Years

RATE OF
RETURN

FYTD AS OF June 30, 2017

12.89%

8.85% OVER 5 YEARS (with lag)

Assets Under Management

UNAUDTIED AS OF May 31, 2018

$65.4 B

Principal $46.7 BILLION | ERA $18.7 BILLION

Value Added

AS OF June 30, 2017

$4.4 B

VS PASSIVE BENCHMARK

RATE OF RETURN

FYTD AS OF June 30, 2017

12.89%

8.85% OVER 5 YEARS (with lag)

Top 1000 funds – OPINION – ALASKA’S PLAN FOR GREAT PARTNERSHIPS July 19, 2018

By Russell Read and Steve Moseley

“The State of Alaska is rightly known for its frontier spirit and fierce independence. So it may be surprising to some that we at the Alaska Permanent Fund Corporation attribute strong recent performance in part to the vigour with which we have pursued a strategy of teaming up with outside partners across our $65 billion portfolio. This strategy leverages our institutional strengths (clear mandate, patient capital) and mitigates our weaknesses (small staff, remote location). Partnership is among the most overused (and, too often, abused) terms in asset management. For Alaska, the term has central importance and refers to three categories of partners: fund managers, specialised advisers, and institutional peers. …

… The first category, partnerships with talented fund managers, relies on a critically important task: identifying capable external managers with differentiated skills and sustainable competitive advantages. We seek to team up with these managers to design and implement initiatives that meet their institutional objectives and ours.  …

… The second category of partnership is with specialised advisers and consultants, to leverage our internal team, improve deal flow, and enhance our due diligence and transactional capabilities. This category includes investment consultants and outside counsel, plus more specialised advisers that offer skills or intellectual capital that complement our internal resources. …

… The third category of partnership has the potential to be the most powerful and impactful: joining with like-minded institutional investors to pursue important strategic or tactical initiatives. Many institutional investors believe they are competing with their peers for a finite pool of alpha – and this is sometimes the case; however, there are also several areas where common challenges, common goals, and complementary resources create opportunities to join together and create tremendous value for all participants. …

… The spirit of independence is alive and well in Alaska. We believe that the best outcomes follow from an honest assessment of one’s own capabilities and a clear-eyed view of the obstacles ahead. It is our mission to continue to deliver attractive returns for the benefit of all Alaskans and we intend to do that not by chipping away at the fees we pay along the way, but by teaming up with capable partners for the long journey ahead.”

Full opinion piece is available at Top 100o funds.

Download PDF


Fund News


Fund News

Top 1000 funds – OPINION – ALASKA’S PLAN FOR GREAT PARTNERSHIPS July 19, 2018

By Russell Read and Steve Moseley

“The State of Alaska is rightly known for its frontier spirit and fierce independence. So it may be surprising to some that we at the Alaska Permanent Fund Corporation attribute strong recent performance in part to the vigour with which we have pursued a strategy of teaming up with outside partners across our $65 billion portfolio. This strategy leverages our institutional strengths (clear mandate, patient capital) and mitigates our weaknesses (small staff, remote location). Partnership is among the most overused (and, too often, abused) terms in asset management. For Alaska, the term has central importance and refers to three categories of partners: fund managers, specialised advisers, and institutional peers. …

… The first category, partnerships with talented fund managers, relies on a critically important task: identifying capable external managers with differentiated skills and sustainable competitive advantages. We seek to team up with these managers to design and implement initiatives that meet their institutional objectives and ours.  …

… The second category of partnership is with specialised advisers and consultants, to leverage our internal team, improve deal flow, and enhance our due diligence and transactional capabilities. This category includes investment consultants and outside counsel, plus more specialised advisers that offer skills or intellectual capital that complement our internal resources. …

… The third category of partnership has the potential to be the most powerful and impactful: joining with like-minded institutional investors to pursue important strategic or tactical initiatives. Many institutional investors believe they are competing with their peers for a finite pool of alpha – and this is sometimes the case; however, there are also several areas where common challenges, common goals, and complementary resources create opportunities to join together and create tremendous value for all participants. …

… The spirit of independence is alive and well in Alaska. We believe that the best outcomes follow from an honest assessment of one’s own capabilities and a clear-eyed view of the obstacles ahead. It is our mission to continue to deliver attractive returns for the benefit of all Alaskans and we intend to do that not by chipping away at the fees we pay along the way, but by teaming up with capable partners for the long journey ahead.”

Full opinion piece is available at Top 100o funds.

Download PDF


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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

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STOCK HOLDINGS

The Public Equities allocation is comprised of U.S., International, and Global Stocks. The portfolio is actively structured to perform well in a variety of market environments, including positively trending equity markets and weaker market environments. The components of this…. read more

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REAL ESTATE

Real Estate is an important component of the APFC’s portfolio. The Alaska Permanent Fund Corporation has partial or complete ownership of 52 residential, retail, industrial, and office buildings in the United States and abroad. Every time APFC collects rent on these properties or sells one…. read more

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ALTERNATIVE INVESTMENTS

APFC invests in private (not exchange traded) holdings through the Private Equity and Growth Opportunities; Private Income: Infrastructure, Private Credit, and Income Opportunities; and the Absolute Return asset class.