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

The Total Fund Value as of April 30, 2019, is $65.3 billion (unaudited).

The value of the Principal totals $46.3 billion, it includes $40.5 billion in constitutionally protected deposits and $5.8 billion in unrealized gains attributed to Principal.

For the same time period, the value of the ERA totals $19.0 billion, it includes $16.6 billion of accumulated realized earnings of which $3.9 billion is recognized as being committed (FY20 POMV, Inflation Proofing to Principal, Capital Income Fund), with $2.4 billion in unrealized gains attributed to the ERA.

The Total Fund Value as of March 31, 2019, is $64.5 billion (unaudited). The value of the Principal totals $46.1 billion, it includes $40.5 billion in constitutionally protected deposits and $5.6 billion in unrealized gains.  For the same time period, the value of the ERA totals $18.4 billion, it includes $16.1 billion of accumulated net income of which $3.9 billion is shown as committed (FY20 POMV, Inflation Proofing to Principal, Capital Income Fund), and $2.3 billion in unrealized gains.

2019MAR31 APFC Monthly Financial Statement

The Alaska Permanent Fund Corporation (APFC) will hold a telephonic Special Meeting of the Board of Trustees on April 26^th, 2019 in Juneau, AK. The public is invited to attend this meeting by webinar; the agenda is limited to the topic of the International Forum of Sovereign Wealth Fund’s Annual Meeting.

Agenda

Special Board Meeting Packet

APFC congratulates Jared Brimberry, Senior Portfolio Manager, on being selected as one of Private Debt Investor’s (PDI) Rising Stars 2019.  This is PDI’s Inaugural List of up-and-coming private credit investors under 40 years of age and was developed based on nominations from the market, as well as the publication’s editorial team.

Marcus Frampton, APFC’s CIO, notes “I am not surprised to see the attention and recognition Jared is receiving in the industry; I believe that our private credit co-investment efforts are yielding strong benefits for APFC’s stakeholders and I’m very pleased with Jared’s work on that and on the overall private credit portfolio.”

Jared has been with APFC since 2016 and has helped develop the APFC’s Private Credit program from its roots as a fund-of-fund driven approach to today’s approach of investing directly as a limited partner in funds and acting as an active co-investor with our partners.  He is an integral part of the APFC team and took a lead role in developing the $1 billion Alaska Direct Alternative Credit Program, a hybrid credit effort that brings together APFC’s fixed income and private market teams with coverage of liquid high yield and illiquid co-investments.

Article available through registering with PDI’s online publication: https://www.privatedebtinvestor.com/private-debts-rising-stars/

The Alaska Permanent Fund Corporation (APFC) is pleased to announce that our team has been recognized for the second year in a row as the North American Private Equity Institutional Limited Partner (LP) Investor of the Year for 2018 by Private Equity International magazine. APFC’s Private Equity and Special Opportunities portfolio holds assets valued at over $8.4 billion, and generated an exceptional return of 32.70% in FY18, and 23.84% annualized over 5 years for the same time period.

Steve Moseley, Head of Alternative Investments for the Alaska Permanent Fund Corporation, notes that: “Private equity and venture capital are long-term investment strategies that align well with the Permanent Fund’s multi-generational mission.”

APFC is proud of the work that our team is doing, and it is wonderful to see our efforts in developing the private markets’ portfolio continue to be recognized in the industry.

PEI 2018 Awards_LP_Alaska

The Board of Trustees held its quarterly meeting in Juneau, Alaska on February 27-28, 2019 to review the performance of the Fund through the first half of fiscal year 19 (FY19) and to review current market outlook and strategic initiatives being pursued by each of APFC’s asset class teams.  This review included a comprehensive discussion around the Fund’s Risk Parity, Currency Overlay and Cash Overlay programs (together known as the Asset Allocation portfolio).  The Board of Trustees also discussed future priorities for the Corporation.  …

Full News Release: 2019FEB_APFC BOT Quarterly Meeting

The Alaska Permanent Fund Corporation (APFC) will hold its Quarterly Meeting of the Board of Trustees on February 27-28, 2019 in Juneau, AK. The public is invited to attend this meeting in-person or by webinar; please see the agenda (linked below) for information.

Agenda items include: asset class updates, a performance review of the portfolio from Callan LLC, as well as presentations on risk parity, foreign currency hedging, and liquidity overlay strategies.

Agenda

The Alaska Permanent Fund’s (Fund) investments fell 3.19% in value in the first half of fiscal year 2019 (FY19) and the Fund ended December 31, 2018 with net assets under management totaling $60.4 billion, comprised of $43.7 billion in the Principal of the Fund and $16.6 billion in the Earnings Reserve Account.  Despite a significant decline in US and international stock markets, the Alaska Permanent Fund mitigated these public market dips due to its diversified approach to investing.

Angela Rodell, Chief Executive Officer, notes that “within a long term investment horizon, it is anticipated that the global markets will go up and down – it is part of the buying – selling – trading process of the portfolio’s holdings. And while we invest with the intent that they go up more than they go down, there are going to be dips.  Our team is poised to take advantage of those market dips.”

201902_APFC FY19 Q2 Performance