September 4, 2026
The Alaska Permanent Fund’s reported value decreases at the start of each fiscal year when the Percent of Market Value (POMV) draw is transferred out of the Earnings Reserve Account (ERA).
That annual POMV draw provides more than two-thirds of Alaska’s unrestricted general fund revenue, supporting state services and the dividend. Because realized earnings accumulate in the ERA and the annual POMV draw amount is committed there, changes in the Fund’s value often reflect this activity within the ERA.
What Happens at FY Year-End
At the end of FY26, the Alaska Permanent Fund’s monthly financial statements provide a record of the year’s changes to the Principal and ERA accounts. APFC has published the audited, year-end financial statements for June 30, 2026.
- ERA:
- Throughout FY26, the ERA accumulated $8.2 billion in realized earnings or “statutory net income.”
- Unrealized gains are allocated to both the Principal and the ERA on a pro-rata basis. When assets with unrealized gains are sold, and the earnings are realized, 100% of those earnings are transferred into the ERA.
- Principal:
- In FY26, $0.5 billion in royalties was deposited into the Fund. The Principal grows automatically with any royalty deposits.
- There were no inflation proofing appropriations in FY26 to protect the Principal’s purchasing power. Inflation proofing of $1.7 billion was appropriated for FY27 and will be transferred to the Principal at the end of this fiscal year in June 2027.
What Happens at FY Year-Start
At the beginning of FY27, the recording of the FY27 and FY28 POMV transfer to the State decreased the Fund value in the financial statements. APFC has published the unaudited monthly financial statements for July 31, 2026.
- The FY27 POMV commitment of $4.0 billion moved out of the ERA to liabilities. It is now available to support the State’s current FY27 Budget.
- APFC designated two new commitments from the available realized earnings in the ERA:
- $4.1 billion was committed for the FY28 POMV draw to support the State of Alaska’s upcoming FY28 Budget, including the dividend and essential services.
- $1.7 billion was committed for FY27 inflation proofing to protect the intergenerational value of the Principal. The inflation proofing amount will be transferred from the ERA to the Principal at the end of this fiscal year in June 2027.