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.

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 5^th 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 25^th-26^th in Anchorage, the Board will take action on adopting the Strategic Plan.

Agenda

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/

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.

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/