In a recent discussion, APFC’s Chief Investment Officer Marcus Frampton and Chief Risk Officer Sebastian Vadakumcherry provided insights into the Alaska Permanent Fund’s strategic approach to asset allocation and risk management.
In this nine-minute video, Frampton and Vadakumcherry emphasize the importance of a long term perspective, free from non-financial or political bias, to ensure the Fund’s growth and sustainability for future generations of Alaskans.
Frampton highlighted how APFC leverages Modern Portfolio Theory, a mathematical framework for maximizing return at an accepted level of risk, to construct a diversified portfolio.
Vadakumcherry underscored the need for continuous portfolio monitoring and risk adjustments. While APFC takes a long-term approach, short-term market conditions are regularly assessed to fine-tune the Fund’s exposure to both public and private markets.
The conversation also touched on the Fund’s evolution, with APFC consistently adding new asset classes to adapt to changes in the global market.
Watch the full video here to learn more about how the Alaska Permanent Fund is Managed.