APFC’s Board of Trustees Annual Meeting

In Uncategorized by Paulyn

The Board of Trustees reviewed the fiscal year 2019 (FY19) investment performance of the Alaska Permanent Fund (Fund) with presentations from Callan Associates and the Alaska Permanent Fund Corporation’s (APFC) asset class directors, approved a FY2021 budget proposal, and accepted the Annual Audit as presented by KPMG. As noted in the 2019 Annual Report, released at the meeting, the Fund’s assets under management (AUM) reached an end of fiscal year high, totaling $65.4 billion as of June 30, 2019, comprised of $47.8 billion in the Principal of the Fund and $18.5 billion in the Earnings Reserve Account.

Callan Associates, APFC’s performance consultant, noted that APFC’s portfolio is well diversified across all major asset classes employed by institutional investors. In FY19 the Fund’s investments returned 6.32%, this strong performance puts the Total Fund in the second quartile relative to other large public funds, as well as other large endowments/foundations. As of June 30, 2019, the Fund’s long-term performance shows a cumulative return of 9.22% over the 10-year period and 6.35% over the 20-year period.

On September 20, 2019, APFC announced the launch of the Alaska Investment Program as directed by the Board Resolution 18-03 to establish an in-state private markets investment program utilizing external fund managers with an initial allocation of $200 million.  Chair Craig Richards notes that after a year in the making, he is “excited that the In-State Emerging Manger Program is now in place and looks forward the program’s two mangers, McKinley Capital Management, LLC and Barings, LLC., generating compelling returns for the Fund while raising capital in support of Alaska based private market investment opportunities.

The Board re-elected Trustee Richards as Chair and Trustee Brady as Vice-Chair.