The Board of Trustees held its quarterly meeting in Fairbanks, Alaska on December 3-4, 2019. During the meeting, the Board examined the first-quarter investment performance of the Fund for the fiscal year 2020 (FY20) and discussed the paradigm shift of the Alaska Permanent Fund to an annual value-based methodology for consistent and stable withdrawals from the Earnings Reserve Account (ERA).
Chair Craig Richards notes that “the transition to the Permanent Fund contributing to state revenues through the Percent of Market Value (POMV) has created several new issues the Board of Trustees and state policymakers need to work through. Perhaps the most important is the risk that repeated bad years of market returns could result in the ERA not being able to fund state government and the dividend. The Board of Trustees looks forward to developing a deep understanding of this risk, and developing recommendations to minimize it.”
Full news release: 201912_APFC BOT Quarterly Meeting News Release