APFC launches In-State Investment Program

In Uncategorized by Paulyn

The Alaska Permanent Fund Corporation is pleased to announce the launch of the Alaska Investment Program. Recognizing the opportunity to earn attractive returns by backing emerging private market fund managers and private market investment opportunities in Alaska, APFC’s Board of Trustees, through Resolution 18-03, directed APFC staff to select external private market fund managers to execute an Alaska focused private markets investment program with an initial allocation of $200 million.

Consistent with the requirements of Alaska Statute 37.13.120(c), this strategic approach to identifying and supporting talented private market fund managers and investments within Alaska will target a rate of return and a risk profile consistent with similar investments outside of Alaska.

Following a competitive process, two external fund managers were selected to implement this strategy: McKinley Capital Management, LLC and Barings, LLC.  At a presentation before Accelerate Alaska in Anchorage, CEO Angela Rodell noted “we are excited to get this program underway and look forward to working with these two managers to achieve competitive, market-based investment returns and capture investment potential right here in Alaska.”

McKinley Capital Management, LLC (“McKinley”) was founded in 1990 and today is the largest private financial services company in Alaska. McKinley currently manages approximately $5 billion worldwide for corporate and public pension funds, sovereign wealth funds, and other institutional investors.

A subsidiary of MassMutual, Barings, LLC is a global investment firm dedicated to meeting the evolving needs of clients and customers. Headquartered in Charlotte, North Carolina, Barings LLC and its subsidiaries have $325 billion under management* and maintain a strong global presence with business and investment professionals located across North America, Europe and Asia Pacific.   *as of June 30, 2019

Additional information on the In-State Investment program and contact information for McKinley Capital Management, LLC and Barings, LLC is available on our website under ‘What We Do / In-State Investments’.

APFC Governance Committee Meeting

In Uncategorized by Maggie Meiners

APFC Governance Committee Meeting

The Alaska Permanent Fund Corporation (APFC) will hold its Governance Committee Meeting on September 24, 2019 in Anchorage, AK. The public is invited to attend the meetings in-person or by webinar; there will be opportunity for public comment and participation.

Agenda

APFC Annual Board of Trustees Meeting

In Uncategorized by Maggie Meiners

APFC Annual Board of Trustees Meeting

The Alaska Permanent Fund Corporation (APFC) will hold its Annual Meeting of the Board of Trustees on September 25-26, 2019 in Anchorage, AK. The public is invited to attend this meeting in-person or by teleconference; there will be an opportunity for public comment and participation.  Agenda items include: approval of the annual audit, review APFC’s asset allocation, and the FY20 budget. There will also be asset class updates, a performance report from Callan Associates, a presentation from Allianz Global Investors.

Agenda

APFC hosts the 11th Annual Meeting of the IFSWF

In Uncategorized by Paulyn

APFC is honored to be hosting the 11th Annual Meeting of the International Forum of Sovereign Wealth Funds (IFSWF) in Juneau, Alaska on September 10-13, 2019.   APFC is a founding member of IFSWF and is proud of this global forum’s work to enhance collaboration, promote a deeper understanding of sovereign wealth funds, and elevate standards for best practices and governance.

The theme of the IFSWF Annual Meeting is Global Currents: Technology. Partnerships. The Arctic. The meeting is for IFSWF members and their invited guests from the global financial services industry – it does not provide an open registration component. The meeting is structured to provide member only sessions on the first two days, and then on the third day it is opened to invited guests from the financial services sector and entities that have established professional relationships with the IFSWF membership.  The venue is open only to registered guests.

To the extent that it is possible, APFC wants to share in this event with Alaskans throughout the State – as such we are working together with 360 North/KTOO to broadcast and live stream the sessions that will be offered to the larger audience on the third day of the meeting as follows:

Public Viewing of IFSWF Annual Meeting available via live broadcast on 360 North/KTOO on September 12th

  • 9:00 –  “Welcome Remarks”
  • 9:30 –  “Tale of Two States: AK and WY”
  • 11:00 –  “The Future of The Arctic”
  • 13:30 – Press Availability
  • 14:00 – “Keynote Speaker: Dr Vincent Pieribone, Vice-Chairman, Ocean X”
  • 15:00 – “A Region of Geopolitical Cooperation”

APFC Audit Committee Meeting & Budget Work Session

In Uncategorized by Maggie Meiners

APFC Audit Committee Meeting & Budget Work Session

The Alaska Permanent Fund Corporation (APFC) will hold its Audit Committee and Board of Trustee Budget Work Session on September 5, 2019 in Juneau, AK. The public is invited to attend the meetings in-person or by webinar; there will be opportunity for public comment and participation.

Agendas and Packets can be accessed on the Board of Trustees Meetings Page.

FY19 unaudited Fund Value of $66.3 Billion and a Performance Return of 6.32%

In Uncategorized by Paulyn

The Alaska Permanent Fund’s investments returned 6.32% in value for fiscal year 2019.  With the close of the state fiscal year, the Total Fund Value as of June 30, 2019, is $66.3 billion (unaudited).

The value of the Principal totals $47.8 billion, it includes $41.5 billion in constitutionally protected deposits and $6.3 billion in unrealized gains.

For the same time period, the value of the ERA totals $18.4 billion, it includes $10.1 billion of accumulated realized earnings and $5.9 billion of committed realized earnings ($1.9B partial POMV to GF and $4.0B to the Principal per HB39), as well as $2.4 billion in unrealized gains.

A full review of the Fund’s portfolio and returns will be provided at the Annual Meeting of the Board of Trustees scheduled for September 25-26, 2019 in Anchorage.

APFC Board of Trustees Planning Session

In Uncategorized by Maggie Meiners

The Alaska Permanent Fund Corporation (APFC) will hold a Planning Session on August 6, 2019 at the Eagle Valley Center, 24600 Amalga Harbor Rd. Juneau, AK 99801. The public is invited to attend this meeting in-person, please note that there will be no opportunity for public comment during this planning session and no official action will be taken.

The meeting agenda is attached to this notice and will also be available at www.apfc.org. There will be a discussion regarding the strategic vision for APFC for FY22 through FY26. The meeting is for discussion and planning purposes only, and no official votes of the Board will be held. The public is advised that during the regular Budget Planning session scheduled for September 5th in Juneau, the staff’s recommendation for the official Strategic Plan will be presented to the Board of Trustees for review. At the Annual Meeting September 25th-26th in Anchorage, the Board will take action on adopting the Strategic Plan.

Agenda

CIO Marcus Frampton Among Trusted Insight’s 2019 Distinguished Chief Investment Officers

In Uncategorized by Paulyn

APFC congratulations our CIO Marcus Frampton on being recognized as one of Trusted Insight’s 2019 Distinguished Chief Investment Officers.  This distinction highlights innovative leaders within the industry who generously share of their knowledge and time to encourage collaboration and leadership among the investor community. As such, this honor captures Marcus’ team spirit and willingness to share his wisdom, as well as this recognition with his colleagues.

Upon hearing of this distinction, Marcus commented that “APFC’s entire investment team has worked incredibly hard to achieve the outstanding performance the Fund has enjoyed for the past several years.  Accordingly, it is very gratifying to see the APFC recognized by Trusted Insight for its position as a leader at the forefront of innovation in our industry and an enthusiastic collaborator with our peer organizations. This outcome and the excellent investment results that have come along with it have been delivered by our talented team of analysts, portfolio managers and investment directors across asset classes.”

Trusted Insight is the world’s biggest network of institutional investors that strives to create a community that promotes educational efforts within the institutional investment industry, while providing investment decision-makers access to a global professional network and alternative investment opportunities.

The full profile can be seen here: https://www.thetrustedinsight.com/investment-news/2019-distinguished-chief-investment-officers-20190716384/

APFC’s Tom O’Day – CIO Magazine’s Class of 2019 NextGens

In Uncategorized by Paulyn

The Alaska Permanent Fund Corporation congratulates Tom O’Day, Portfolio Manager – Fixed Income, on being selected by Chief Investment Officer Magazine for their NextGen award. This recognition is particularly meaningful in that the CIO NextGen achievers are anonymously nominated by their peers for their ascendance as innovative investment professionals.

“Tom has proven to be a great asset to the Fixed Income team and I am happy to see him get the recognition he deserves” noted Jim Parise, APFC’s Investment Director – Fixed Income.

Tom has been with APFC since 2017 and is a respected member of the Fixed Income Team, which is the foundation of APFC’s internal management component with a portfolio valued at $15.7 billion. In just over 2 years, Tom has solidified his position as a go-to for analytical questions among the investment team and was integral in the development of the $1 billion Alaska Direct Alternative Credit Program, a hybrid credit effort with coverage of liquid high yield and illiquid co-investments that brings together APFC’s fixed income and private market teams.

The full profile is available online at CIO Magazine:  https://www.ai-cio.com/lists/2019-nextgen/?pid=43008.

Trustees Review Performance and Active vs Passive Management

In Uncategorized by Paulyn

The Board of Trustees held its quarterly meeting in Juneau, Alaska on May 22- 23, 2019 to review the performance of the Alaska Permanent Fund through the third quarter of fiscal year 19 , assess the opportunities of active vs passive management, review the securities lending program, and consider the asset allocation of the portfolio.  The Trustees did not make any changes to the Fund’s asset allocation.

The Fund’s investments gained 6.48% in the three-month period between January 1, 2019 and March 31, 2019 which contributed to the portfolio moving back into positive performance territory of 3.07% thru the third quarter of FY19.  The Fund ended March 31, 2019 with assets under management totaling $65.8 billion.

Chair Craig Richards noted that “APFC spends on average 25 basis points on active management of its stock portfolio each year.  With the trend of large funds to move away from active management to holding much cheaper index funds, it was a good time for the Board to examine if the active management strategy adds value for Alaskans.  I think the analytics clearly demonstrate that it does. After fees, $42 million per year (or cumulative $300 million) is how much active management has added annually to the overall portfolio of the Fund over the past 7 years.”

2019MAY_APFC BOT Quarterly Meeting FY19Q3