Frequently Asked Questions

Alaska Permanent Fund Corporation (APFC)

The Permanent Fund is managed by the Alaska Permanent Fund Corporation (APFC), a quasi-independent state entity with a dedicated team of investment professionals.

The APFC Board of Trustees oversees the Corporation and Fund's investment strategy. It's important to note that Trustees do not make investment decisions; they set asset allocation, monitor performance, and work with executive leadership to set the strategic direction for the Corporation.

Investment staff and external partners invest the fund based on identified allocation and risk parameters to provide a maximum risk adjusted return. This work is supported by other APFC teams, such as IT, Finance, Legal, Communications, and Operations to ensure systems are fully functional, teams have the resources they need, and stakeholders are provided with accurate and timely information.

Legislative Findings on the Purpose of the Fund

The state law establishing the Permanent Fund (AS 37.13) provides that it be managed and invested in a manner consistent with the following legislative findings:

• The Fund should provide a means of conserving revenue from mineral resources to benefit all generations of Alaskans.
• The Fund’s goal should be to maintain safety of principal while maximizing total return.
• The Fund should be used as a savings device managed to allow the maximum use of disposable income from the fund for the purposes designated by law.

Two-Account Structure

The Fund is invested as a single, globally diversified portfolio, designed to maximize risk-adjusted returns over the long term.

It has two key components:

• The Principal, which is constitutionally protected and used solely for investing in income-producing assets
• The Earnings Reserve Account (ERA), which holds realized investment earnings defined as statutory net income, and is available for legislative appropriation.

The Fund's Role & Importance to Alaska

The Permanent Fund plays a critical role in the Alaska State Budget, particularly through the Percent of Market Value (POMV) draw, which provides funding for the PFD and essential state services.

By strategically investing the Fund's financial assets, APFC generates significant revenue for Alaska. The Fund has become a key financial resource for Alaskans, with the 5% POMV draw providing a majority of Alaska’s general fund revenue.

While APFC generates revenue through its investment management, the Legislature determines how this revenue is allocated through its appropriation power.

The Earnings Reserve Account

The Earnings Reserve Account (ERA) is established in state law, AS 37.13.145(a), as a separate account to hold the net realized income from the Permanent Fund's investment portfolio. The realized income in the ERA can be appropriated by the Legislature through a simple majority vote. Based on statutory language, the amount that can be drawn is based on the average total Fund value over 5 years, a rules-based methodology known as the Percent of Market Value (POMV).

Percent of Market Value Draw

Per Alaska Statute 37.13.140(b), enacted in 2018, withdrawals from the ERA are based on a percentage of the average market value or "POMV" of the Fund, a method designed to create a withdrawal structure that ensures no more than a sustainable amount is drawn on an annual basis.

The POMV draw is based on a percentage of the average market value of the Fund for the first five of the preceding six fiscal years; this average creates a smoothing effect across years. The POMV draw provides a certainty of liability for managing the portfolio and a stable, predictable payout from year to year. The draw is subject to appropriation and is set in statute at 5.0%.  Based on the two-account structure, draws are also limited to the balance that is available in the Earnings Reserve Account.

Statutory Net Income

The Earnings Reserve Account (ERA) grows through the receipt of Statutory Net Income (SNI).

SNI is the realized earnings from investment activity—decisions to buy and sell assets—excluding unrealized gains and losses as outlined in state statute AS 37.13.145. This income, or SNI, is deposited into the ERA as it’s earned throughout the year.

However, the ERA is not just an account that accumulates funds; it is also drawn from each year to support the POMV draw and to inflation proof the Principal. The funds within the ERA are available for use by the Alaska State Legislature through its power of appropriation and a simple majority vote.

Investment Strategy

The APFC Board of Trustees oversees the Fund's investment strategy and asset allocation. The Board’s goal is to achieve an average annual real rate of return of five percent (5%) at risk levels broadly consistent with large public and private funds.

A real rate of return is the annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other external effects. In order to meet this goal, the Board sets an asset allocation that includes holdings across a broad range of investments. Information regarding the Fund’s current investments can be found in the Investments section of the site.

Fund Value

As of March 31, 2026, the total Fund value is 86,384,100,000.

The daily market values and monthly fund values are updated regularly on the Performance page. The value can fluctuate up or down with market movements, and trends upward over time. The Alaska Permanent Fund's Financial Statements and Performance Reports are also available for review and download.

Fund Growth & Performance

The Alaska Permanent Fund remains a strong, globally diversified investment fund managed for the long-term benefit of current and future generations of Alaskans. Over time, the Fund has distributed more to support Alaska than it has received in mineral revenue deposits, while continuing to maintain a substantial balance.

APFC evaluates the Fund’s performance against Board-approved benchmarks designed to reflect the Fund’s asset allocation and investment strategy. These benchmarks provide a consistent framework for measuring results over time.

Maintaining Purchasing Power of the Principal

Inflation proofing is an appropriation from the Earnings Reserve Account to the Principal to protect the value of the Permanent Fund against inflation.

Since the Principal does not retain any of the realized gains on investments, it must receive an annual appropriation to offset the effects of inflation and preserve its purchasing power to benefit all generations. By inflation proofing the Principal, the APFC ensures that the Permanent Fund continues to serve its purpose of benefiting all generations of Alaskans, not just the present one.

Recent APFC Updates

APFC regularly shares updates on Board meetings, financial and performance reports, publications and organizational news. The latest information is posted on the Fund News page.