The APFC Board of Trustees Review Fund Performance and Risk Components

In Uncategorized by Paulyn

The Board of Trustees held its quarterly meeting in Juneau, Alaska on December 11-12, 2018 to review the performance of the Fund through September 30, 2018, consider the components of a comprehensive risk program, and learn about the 2019 market forecast from the Alaska Permanent Fund Corporation’s (APFC) investment partners.

The full news release is available at: 20181212_APFC BOT Quarterly Meeting

APFC Quarterly Board of Trustees Meeting

In Uncategorized by Danielle Graham

The Alaska Permanent Fund Corporation (APFC) will hold its Quarterly Meeting of the Board of Trustees on December 11-12, 2018 in Juneau, AK. The public is invited to attend this meeting in-person or by webinar; there will be an opportunity for public comment and participation.  Agenda items include: risk overview, review of the compensation committee, asset class updates, a performance report from Callan Associates, and a macro overview and 2019 outlook panel.

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APFC Quarterly December 11-12 BOT Packet

Alaska Permanent Fund Returns 2.13% for the first quarter of FY19

In Uncategorized by Paulyn

The Alaska Permanent Fund’s (Fund) investments gained 2.13% during the first quarter of fiscal year 2019 (FY19) and the Fund ended September 30, 2018 with total assets under management valued at $63.9 billion (unaudited). The Fund is comprised of two accounts, the Principal and the Earnings Reserve Account (ERA), that are invested using the same asset allocation with pro-rata shares attributed to each account. As of September 30, 2018, the value of the Principal is $46.9 billion and the value of the ERA is $17.0 billion. The 5.25% POMV (percent of market value) draw of $2.7 billion in FY19 to pay for government services and the 2018 fall dividend has been partially distributed with a transfer of $1.4 billion to the general fund. The remainder of the draw equaling $1.3 billion remains invested in the Fund and recorded as a liability for transfer through-out the remainder of the fiscal year.

Angela Rodell, APFC’s CEO, notes that “diversification and meaningful allocations to private market assets continue to benefit the Fund.  As the market becomes increasingly volatile, it is more important than ever to remember we invest with a 10, 25, 50 year or longer time horizon.  Our APFC team continues to be focused on building real financial wealth and resources for the State of Alaska.” …

Performance overviews and updates for each asset class will be presented to APFC’s Board of Trustees during their quarterly meeting on December 11-12, 2018 in Juneau.  Additional detailed information can be found at apfc.org and the following link for the Alaska Permanent Fund’s financial statements and investment performance.

Full press release for more information: 2018NOV02_APFC FY19 Q1

Alaska Permanent Fund FY19 First Quarter Financials, Performance Report to Follow

In Uncategorized by Paulyn

Juneau – The Alaska Permanent Fund (Fund) ended the first quarter of fiscal year 19 (FY19) on September 30, 2018 with total assets under management valued at $63.9 billion (unaudited). The change in Fund balance from FY18 fiscal year end is attributed to a $1.3 billion gain in the value of investments and the transfer of assets from the Earnings Reserve Account (ERA) to the general fund based on the recently adopted percent of market value methodology (POMV).

The Fund is comprised of two accounts, the Principal and the ERA, that are invested using the same asset allocation with pro-rata shares attributed to each account. As of September 30, 2018, the value of the Principal totals $46.9 billion, comprised of $40.3 billion in constitutionally protected deposits and $6.6 billion in unrealized gains. For the same time period, the value of the ERA totals $17.0 billion, comprised of $14.6 billion in realized earnings and $2.4 billion in unrealized gains.

The 5.25% POMV (percent of market value) draw of $2.7 billion in FY19 to support governmental services, including the payment of the permanent fund dividend, has been partially distributed with a transfer of $1.4 billion to the general fund. The remainder of the draw equaling $1.3 billion remains invested in the Fund and recorded as a liability for transfer through-out the remainder of the fiscal year.

Performance results for the first quarter of FY19 are forthcoming and will be accompanied by a news release once they are final.

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APFC Recognized Among “30 Most Influential Investors in Private Credit”

In Uncategorized by Paulyn

Juneau – The Alaska Permanent Fund Corporation (APFC) welcomes the recognition by PEI’s Private Debt Magazine as one of the “30 Most Influential Investors in Private Credit” for our internal management team’s pioneering contributions to this asset class.

On learning of this honor, Marcus Frampton, APFC’s Chief Investment Officer, remarked that “the purpose of our work is to generate attractive returns for the State not win awards, but it is great to see hard work and innovative thinking recognized with an industry ranking.”

The Alaska Permanent Fund’s Private Credit portfolio as of June 30, 2018 is valued at $1.2 billion and is comprised of investments that are asset backed and designed to generate high, regular income within the risk guidelines established by APFC’s Board of Trustees.  This portfolio exemplifies APFC’s work to bring more management in-house. Since coming on staff in 2016 Jared Brimberry, Senior Portfolio Manager, has been successful in developing this program from a fund-of-funds approach to a leading direct allocator and co-investor, while providing excellent returns, earning 8.79%, 6.47%, and 7.20% in the fiscal year, 3 years, and 5 years ended June 30, 2018.

In May of this year, APFC launched the $1 billion hybrid credit effort named Alaska Direct Alternative Credit (ADAC), which is a collaboration between our Private Credit and Fixed Income Plus internal management staff.  Investments in ADAC include a liquid portfolio of internally managed non-investment grade bonds and ETFs, and a private portfolio of co-investments alongside APFC’s private credit managers.

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APFC’s Board of Trustees Further Legislative Initiatives

In Uncategorized by Paulyn

The Board of Trustees held a special meeting to discuss legislative initiatives designed to further APFC’s ability to deliver compelling returns and a sustainable revenue stream for Alaska.

In providing guidance on rules-based withdrawals for the Fund and to help ensure the long term sustainability of using Fund earnings for the benefit of all generations of Alaskans, the Board passed Resolution 18-04 RESOLUTION OF THE BOARD OF TRUSTEES OF THE ALASKA PERMANENT FUND CORPORATION RELATING TO A SUSTAINABLE RULES BASED LEGAL FRAMEWORK FOR FUND TRANSFERS.  The Resolution is in support of SB26 Chapter 16 SLA 18, an important first step in codifying a set of rules to establish a sustainable annual draw from the earnings reserve account.

Chair Craig Richards noted “with the passage of Resolution 18-04, the Board of Trustees affirm the importance of formulaic management of transfers into and out of the Earnings Reserve Account. Through the resolution the Board of Trustees encourage and support methods of effective transfers that help ensure sustainability and long term growth of the Fund.

2018OCT17_APFC BOT Special Meeting

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