Knowing that the state’s reliance on the Alaska Permanent Fund to support state services is more significant than it has ever been, our team at APFC is aware of the daily interest in the Fund values. In watching those values, keep in mind that they are changing rapidly – by the hour, the day, the week – and the changes in value primarily reflect movement within the unrealized gains/losses holdings of the Fund. Our APFC team remains vigilant in monitoring this activity and positioning the portfolio within a long-term investment horizon.
APFC’s Chief Investment Officer Marcus Frampton offers, “Through the extreme market volatility prevailing in markets for the past several weeks, the APFC portfolio has held up well. The Fund has ample liquidity to fulfill all our obligations and to opportunistically add to positions where we perceive there to be compelling value. Additionally, the APFC Team’s conservative positioning of the portfolio entering this episode, with an overweight to cash and fixed income, has resulted in very strong relative performance and enviable levels of dry powder to deploy into investment opportunities.”
The total value of the Fund at the beginning of this fiscal year on July 1, 2019 was $66.3 billion, and six months into the fiscal year had reached a value of $66.9 billion. We have now officially closed the books on February, and the total value of the Fund on February 29, 2020 was $64.9 billion. Upon market close on March 16, the total Fund value had fallen to $58.7 billion. …
The cumulative effect of this month’s volatility on the ERA balance will be available when the March financial statements are published. That being said, APFC understands the importance of providing information to update Alaskans and policymakers about the effects of the market downturn on the Earnings Reserve Account during this critical time period. …
Please follow this link for the full news release: 2020MAR17_Fund Values