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APFC Board of Trustees discusses Fiscal Year 2021 Performance at Annual Meeting in Kodiak

In Uncategorized by Adam Kane

Kodiak – The Board of Trustees met to review the fiscal year 2021 (FY21) investment performance of the Alaska Permanent Fund (Fund), strategic and background information from several of APFC’s investment partners and members of the Investment Advisory Group, as well as electing corporate officers and approving a budget proposal which will be brought forth for inclusion in the FY23 operating budget.

As published in the Fiscal Year 2021 Annual Report, the Fund grew from $65.3 billion at the end of FY20, closing the fiscal year 2021 with a historic high total value of $81.9 billion. Now supporting more than 73% of the State of Alaska’s unrestricted spending, the Permanent Fund transferred $3.1 billion through the statutory Percent of Market Value (POMV) draw to the State in FY21. This rules-based structure allowed for a 5.25% annual draw from the Fund (statutorily decreasing to 5% beginning in FY22).

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Invested with Alaskans – APFC FY21 Annual Report

In Uncategorized by Adam Kane

Forty-five years ago, visionary Alaskans voted to establish the Alaska Permanent Fund. As the Fund’s investment manager, the Alaska Permanent Fund Corporation works to benefit all Alaskans through our responsible stewardship of Alaska’s largest renewable financial asset. Under the guidance of the appointed Board of Trustees, with support from the Executive and Legislative branches for resources, and with reporting transparency for our Alaskan stakeholders, APFC will always be INVESTED WITH ALASKANS.

The APFC FY21 Annual Report is now available highlighting the record returns and high value from the past fiscal year. The report illustrates the  interconnection of the Corporation’s role in prudently investing and managing the Fund, as well as the industries that contribute dedicated revenues to help grow the Fund and the generations of Alaskans who benefit from the Fund’s earnings.

Learn more about the strategies, investments and management of the Alaska Permanent Fund in, Invested with Alaskans – APFC FY21 Annual Report

Upcoming APFC Board of Trustees Annual Meeting

In Uncategorized by Jennifer Thorsteinson

The Alaska Permanent Fund Corporation (APFC) will hold the Board of Trustees Annual Meeting on September 28-29, 2021 in Kodiak and via Webex. The public is invited to attend this meeting in person or via webinar and there will be an opportunity for public comment and participation at the beginning of the meeting. Please see the agenda for meeting details (location, time, and webinar link).
APFC Board of Trustees Annual Meeting_Agenda
2021 APFC BOT Annual Meeting Packet

Upcoming APFC Board of Trustees Budget Work Session

In Uncategorized by Jennifer Thorsteinson

The Alaska Permanent Fund Corporation (APFC) will hold a Board of Trustees Budget Work Session on September 8, 2021 via Webex. The public is invited to attend this meeting via webinar (link is in the agenda) and there will be an opportunity for public comment and participation at the beginning of the meeting.
APFC Board of Trustees Budget Work Session #2 Agenda
APFC BOT Budget Workshop #2 Packet

$81.9 B Final FY21 End of Year Permanent Fund Value

In Uncategorized by Adam Kane

APFC Board of Trustees’ Audit Committee reviewed the FY21 audited financial statements confirming a fiscal year-end Fund value of $81.9 billion resulting from an all-time portfolio performance high-mark of 29.73% for the fiscal year ending June 30, 2021.

Since its inception through FY21, the Permanent Fund has seen an annualized return of 9.12% and paid out more than $33.9 billion to current generations of Alaskans through transfers to the State’s General Fund and Dividend Appropriations.

A full analysis and review of Permanent Fund activity and performance will be discussed at the APFC Board of Trustees Annual Meeting in Kodiak and via webinar, and published in the APFC Annual Report available on September 28. APFC Board and Committee information is available at https://apfc.org/the-board-of-trustees/board-of-trustees-meetings/.

July 2021 Financial Statements are also now available.

July 1 marked the beginning of Fiscal Year 2022, the change from the end of FY21 total Fund value of $81.9 billion to the July 31 value of $79.3 billion is due to the FY22 POMV appropriation moving out of the Earnings Reserve Account within Total Fund Balance and into the liabilities section of the Fund.  The Fund also had positive revenues and received royalties in the first month of the new fiscal year.  The FY23 POMV draw is now reflected as a commitment to the ERA.

July financial statements show the Fund’s total value was $79.3 billion.

The Principal totaled $66.2 billion, consisting of two parts:

$51.0 billion in permanent savings contributions (includes the $4 billion FY22 special appropriation)
$15.2 billion in unrealized gains

The Earnings Reserve Account totaled $13.1 billion, consisting of three parts:

$6.7 billion of uncommitted realized earnings
$3.4 billion of committed realized earnings to the FY23 POMV draw
$3.0 billion in unrealized gains

 

Upcoming APFC Board of Trustees Meetings – September 2

In Uncategorized by Jennifer Thorsteinson

The Alaska Permanent Fund Corporation (APFC) Board of Trustees will hold an Audit Committee Meeting and Budget Work Session on September 2, 2021 at the Atwood Building – Rooms 102/104, 550 W 7th Ave, in Anchorage. The public is invited to attend this meeting in person, or via webinar (links are in the agendas) and there will be an opportunity for public comment and participation at the beginning of both meetings.
Audit Committee Agenda
APFC Board of Trustees Audit Committee Packet
Budget Work Session Agenda
APFC Board of Trustees Budget Work Session Packet

Permanent Fund closes record year at historic high value

In News by Adam Kane

On June 30th, APFC finished Fiscal Year 2021 by recording an all-time high value for the Alaska Permanent Fund of $81.1 billion. Preliminary results indicate the Fund returned 29.73 %, a record strong performance as well.

The unaudited results for the Fiscal Year show the Principal of the Fund, consisting of two parts, totaled $60.1 billion. The permanent savings contributions were valued at $46.9 billion, and there were $13.2 billion in unrealized gains.

The Earnings Reserve Account totaled $21.0 billion, consisting of four parts. The uncommitted realized earnings were valued at $9.3 billion, and there were $4.6 billion in unrealized gains. The ERA had $3.1 billion in committed realized earnings available for the FY22 POMV draw and $4.0 billion committed to the Principal as a Special Legislative FY22 Appropriation*.

An independent third party conducts an audit of the Alaska Permanent Fund’s financial statements on an annual basis. In accordance with our statutory obligation under AS 37.13.170, the audited financial statements are published in our annual report and made available to the public at the time of the Board of Trustees Annual Meeting. This year’s annual meeting will be held in Kodiak on September 28-29, 2021.

*Please note that the July 31, 2021, the start of the fiscal year 2022 financial statements, will reflect the deposit of the $4 billion to Principal.

Looking Ahead at Fiscal Year 2022

In News by Adam Kane

July 1, 2021, marked the start of APFC’s 2022 Fiscal Year. As we set forth into the new Fiscal Year, following the timely resolution of the state’s operating budget, we recognize the commitment and continued professionalism of APFC staff who have been working diligently to support our fellow Alaskans. APFC remains fully operational and we continue to actively manage the assets of the Permanent Fund, identifying and acting on compelling investments to deliver on our mandate of generating outstanding returns for the benefit of all current and future generations of Alaskans.

Along with the start of the new Fiscal Year is the adjustment of asset allocations to fit within the targeted ranges established by the Board of Trustees every 5 years. This shift of assets across the Fund’s 8 asset classes includes 1 percent decreases in Public Equities and Fixed income investments, while increasing investments in Real Estate and Private Equity by 1 percent. The other asset classes are targeted within the same allocations through FY25. The total portfolio mix is intended to represent the expectations of the Board’s long-term vision while conforming to their approved risk appetite for the Fund.

As the Principal of the Fund is protected constitutionally, the Earnings Reserve Account is available for legislative appropriation. State Legislature has an established Percent of Market Value formula for sustainable withdraws from the Fund set at 5 percent annually.

A $3.1 Billion POMV draw will be transferred to the State of Alaska during FY22, which represents the primary revenue source for the state. Revenue generated by Permanent Fund investments now constitute more than 70% of the state’s general fund – meaning that 70 cents of every 1 dollar spent on education, public safety, transportation and other essential services and programs comes from the Fund’s earnings.

 

 

APFC on Critical Services List

In Uncategorized by Paulyn

Work to resolve the status of the State of Alaska’s Fiscal Year 2022 budget continues; the administration has released a list of critical services. As per that list, should there be a government shutdown on July 1, 2021, the Alaska Permanent Fund Corporation will remain fully operational.

Managing over $80 billion of financial assets requires a tremendous amount of diligence, resources, and commitment, a responsibility that we all hold to the highest standard of fiduciary duty.

Our ongoing stewardship of the Alaska Permanent Fund supports all Alaskans – our friends, neighbors, and fellow public service professionals.

 

We encourage all of our Alaskan leaders to work together to seek a timely resolution.

APFC Prepares For Government Shutdown

In Uncategorized by Paulyn

Chief Executive Officer Angela Rodell announced today that the Alaska Permanent Fund Corporation (APFC) is taking steps to ensure that the Alaska Permanent Fund and money managed on behalf of the Alaska Mental Health Trust Authority are prudently overseen in the event of a government shutdown.

The Chief Executive Officer and her staff have been diligently working to ensure that a business continuity plan is in place to protect the assets should there be a government shutdown. This includes ensuring that protocols with the Fund’s custodial bank are in place and that the ability to transfer money and make payments under existing agreements are secured.

It is important to note that this plan does not provide for the active, forward-looking investment of the Fund that the Corporation engages in daily. Based on the advice received from the Department of Law, it is anticipated that during a shutdown, no new investments will be pursued. Therefore, there can be no assurance that a government shutdown will not have a material impact on the earnings and performance of the Fund.

CEO Angela Rodell asserts, “This is the second time in 5 years we have had to take these steps. The State depends on us more than ever, so this is a high-stakes game being played with serious impacts on the lives of every Alaskan, which could be felt for a long time to come. I encourage everyone to get back to the table so that we can continue to do our work uninterrupted and generate revenue for the State of Alaska.”

The APFC staff manages and invests the assets of the Alaska Permanent Fund and assets on behalf of the Alaska Mental Health Trust Authority; they are among the many state employees who got lay-off notices. The unaudited market value of the Fund is currently over $ 80 billion, an all-time high.

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2021_06_APFC Prepares for Government Shutdown