If there were a risk-free investment allocation in which the Alaska Permanent Fund could achieve its long-term return objective of 5% plus inflation, the Fund’s investment management would be relatively straightforward.  Realistically, it is not possible to achieve this targeted return safely through any single investment or asset class. Before the 1980s, governments generally had more regulations related to investment …

High inflation and rising interest rates have been making headline news for the past year. Inflation occurs for several reasons, but it doesn’t necessarily happen in every country to the same degree or at the same time. In 2022, while the US Federal Reserve and central banks worldwide began aggressively increasing interest rates to fight inflation, some countries saw more …

“The fundamental premise of risk management is accepting that there are inherent uncertainties in the longer-term pursuit of making money,” says Sebastian Vadakumcherry, APFC’s Chief Risk and Compliance Officer. “Understanding and appreciating how much an investor could expect to lose can lead to better investment decisions.” Most investment institutions have a target return or benchmark goal that they are trying …

Changing the definition Investments in infrastructure, the backbone of those things societies depend on every day, have proven their ability to generate consistent revenues over the long term. Since 2007, APFC has been investing in infrastructure assets in the United States and internationally.  The definition of infrastructure itself has continued to expand and evolve over the years. The asset class …

Empirical evidence shows that Public Equities investment outperformance is challenging to generate and sustain long-term. It requires a certain degree of skill, market perspective, and time. As with all of the Alaska Permanent Fund Corporation’s asset classes, the key objective of the Public Equities portfolio is to outperform its benchmark over time and across market cycles. Investing for the long …

When it comes to investments, how familiar are you with custody? A custodial relationship for investment management is a relationship in which a designated agent is given a layer of control to assist the owner in transacting and safekeeping their assets. The Permanent Fund’s stocks, bonds, treasuries and other investments aren’t physically or digitally stored in the APFC office in …

Diversification in action “I don’t think of finance as a man’s world,” reflects Angela Rodell, CEO of the Alaska Permanent Fund Corporation (APFC), “I think of finance as male-dominated – but it’s not their world.” It has long been understood that the best way to achieve the most stable, best performing, and sustainable investment returns is achieved through a diversified …