Alaska Permanent Fund Corporation Remains Diligent

In Uncategorized by Paulyn

Alaska Permanent Fund Corporation Remains Diligent

As the public equities markets head into ‘bear market’ territory, APFC remains diligent in our management of the Alaska Permanent Fund and in fulfilling our obligations to Alaskans.

APFC’s team is navigating through the market downturn by looking into this period of uncertainty to find opportunities that will bring long-term benefits during the recovery phase.  APFC’s investment strategies have been reaffirmed as the diverse asset allocation has provided some relief in offsetting the significant drops in public equities performance.

Angela Rodell, Chief Executive Officer, notes that – “We recognize this is a very scary time for everybody. There is a lot of concern for Alaskans, our local and state economy, and both the emotional and economic toll this virus is taking on all of us. I want to assure Alaskans that the Fund continues to be a source of stability. Yes, we have taken losses, but the diverse mix of assets along with our long-time horizon means we are keeping to our commitment to provide a stable source of revenue for Alaskans to rely on.”

The Total Value of the Fund at the beginning of this Fiscal year on July 1, 2019 was $66.3 billion, and six months into the fiscal year had reached a value of $66.9 billion.  The market close on March 12 took the Fund value to $59.9 billion.

The cumulative effect of this month’s volatility on the ERA balance will be available when the March financial statements are published. The ERA balance cannot be calculated until all investment accounts have been reconciled and closing entries made. The March 31, 2020 financial statement will be available mid-April and will include values for the Principal and ERA based on that closing date.

APFC recognizes the essential role that the Alaska Permanent Fund holds in providing a dependable and stable revenue stream for the State of Alaska.  The FY20 $2.9 billion percent of market value (POMV) distribution to the state general fund has been fulfilled, and the FY 21 commitment to distribute $3.1 billion under the POMV formula will be met based on current holdings in the Earnings Reserve Account.