APFC’s Board of Trustees Affirms Direction

In Uncategorized by Paulyn

The Board of Trustees held a meeting in Anchorage and via webinar on July 12, 2023, to hear updates on portfolio activity, discuss the Anchorage office proposal, review the updated Personnel Management Plan, interview and select an Investment Advisory Group member, and further a strategic planning initiative.

Financial results for the first two months of the fourth quarter were reflective of ongoing market volatility. As the fiscal year has recently ended on June 30, the financial and performance results will be presented at the annual meeting in September once the independent audit and performance reporting are complete.

Given the current high inflationary environment, relatively flat markets, and lower gain realizations, the Board expressed interest in evaluating and addressing the dual issues of how to balance ERA durability in providing an annual draw for state revenue with the need to inflation-proof the Principal to preserve purchasing power and ensure intergenerational benefit. The Board approved staff to develop a Trustee Paper to address some of these issues as an effective tool to inform ongoing conversation and policy dialogue related to the Alaska Permanent Fund.

The Board reiterated its aim to establish an APFC satellite office in Anchorage to support the retention and recruitment of professional staff. In full recognition of the Board’s direction, staff will continue to work to ensure successful implementation including a timeline and process to bring forth funding, while addressing details essential to guaranteeing operational and staff success.

The Corporation’s Personnel Management Plan (PMP) was reviewed as an essential document for ensuring that policies are in place to align with organizational culture and the expectations of accountability for a public corporation. An essential element of the PMP is compensation and salary structure. APFC strives for competitive pay and compensation decisions rooted in a multifactor review of each candidate/staff member. The Board will establish a working group to bring forth pay band compensation recommendations to inform the budget process in September. The same group will also assess alternative work policies outlined in recognition of the modern workplace.

The Board selected Britt Harris, Acting CEO of Texas Permanent School Fund Corporation and Former Chief Executive Officer & President of UTIMCO, to join APFC’s Investment Advisory Group. The purpose of this group, consisting of three advisors, is to provide Trustees with further insights and professional knowledge in the areas of investment management based on proven experience.

Looking forward, the Trustees directed staff to coordinate a strategic planning session in the coming months to ensure alignment in direction.

The Board will be holding a budget work session on September 7 in Juneau. The Annual Meeting of the Board of Trustees will be held on September 27-28 in Anchorage.