Our Commitment to Alaska
APFC’s long-term stewardship, prudent management, and diverse investment strategy ensure the Alaska Permanent Fund will continue to be safeguarded and wisely invested for the benefit of generations of Alaskans. Though we continue to find ourselves in extraordinary times, be assured that our staff is working at capacity and is fully engaged in managing the portfolio to find opportunities within the current market and limiting the downside impacts to the Fund.
Notes on Performance
Reflected in the APFC June 30, 2022 Performance Report are the successes and challenges faced by the portfolio over the past year. Following a year of record returns and explosive growth in global markets, forecasted market volatility and inflationary pressures are now impacting Fund performance.
Amid these global economic pressures, the total Fund performance is down 1.32% for the fiscal year 2022. That said, the Fund significantly outperformed the passive benchmark of -14.64% and the performance benchmark of -3.24%, for which Fund performance is measured in comparison.
“The silver lining from a year where the Fund did not achieve the level of returns our stakeholders need and expect, highlighted in this performance report, is that the Fund outperformed its performance benchmark for nearly every asset class. With APFC’s prudent strategy and a well-diversified portfolio, our expert staff continued to identify interesting opportunities and generated returns greater than the passive index and our peer groups indices,” noted Marcus Frampton, Chief Investment Officer.
The total return objective of inflation plus 5%, equal to 14.06% for FY22, was not met. Fortunately, guided by the strategic investment policy set by the Board of Trustees, the Alaska Permanent Fund is comprised of a well-diversified portfolio invested over a long-term horizon to ensure that it can continue to deliver necessary returns across a range of market environments. The benefits of portfolio diversification become more vital during such recent market swings, as does the ongoing diligence of APFC’s active investment management.
Valerie Mertz, Acting Executive Director, provides, “I want to assure Alaskans that the Fund continues to be a source of stability. Yes, Fund performance was slightly negative, but the diverse mix of assets and our long-time horizon mean we are keeping to our commitment to provide a stable source of revenue for Alaskans to rely on.”
The ending fiscal year 2022 Fund values, including the total Fund, the Principal and the Earnings Reserve Account, will be available once the annual audit of the financial statements is complete. The Audit Committee is scheduled to meet on September 1, 2022.