Welcome, Trustee Deven Mitchell, to APFC’s Board

In Uncategorized by Paulyn

APFC welcomes the Acting Commissioner of the Alaska Department of Revenue, Deven Mitchell, to the Board of Trustees.

Trustee Mitchell has long familiarity with the Fund and notes, “As a lifelong Alaskan, the importance of Alaska’s Permanent Fund has been clear to me since Governor Hammond described the potential to my third-grade class in the Capitol back in 1976.  It is truly a privilege to be able to serve as a Trustee for Alaska’s Permanent Fund Corporation”.

Trustee Mitchell brings a wealth of knowledge and experience to APFC, having worked at several Alaskan financial institutions and for the Alaska Department of Revenue since 1992. His leadership and service as the Executive Director and Treasurer of the Alaska Municipal Bond Bank Authority, a public corporation of the State, provide a solid foundation of fiduciary duty.

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APFC’s Board of Trustees Meets in Advance of Annual Meeting

In Uncategorized by Paulyn

Juneau – APFC’s Board of Trustees Audit Committee met on September 1st to monitor the integrity of the financial reporting process and the system of internal controls and procedures regarding finance, accounting, and legal compliance, as well as to review the performance and independence of APFC’s external auditors.  

In line with state statute and our commitment to transparency, the Alaska Permanent Fund is audited in accordance with generally accepted accounting principles every year by an independent outside financial auditor. The annual audit includes financial statements providing: the amount of money received by the Fund from each investment during the period covered, a market value appraisal of the Fund’s assets, a description of the Fund’s investment activity during the fiscal year, a comparison of the Fund performance with previous years, and an examination of the effect of the investment-related policies.   Read More

APFC Board of Trustees Meetings

In Uncategorized by Jennifer Thorsteinson

The Alaska Permanent Fund Corporation (APFC) Board of Trustees will hold an Audit Committee Meeting and Budget Work Session on September 1, 2022. The public is invited to attend this meeting in person, or via webinar (location and links are in the agendas linked below) and there will be an opportunity for public comment and participation at the beginning of both meetings.
9.1.22 APFC Board of Trustees Budget Work Session Agenda
9.1.22 APFC Board of Trustees Budget Work Session Packet
9.1.22 APFC Board of Trustees Audit Committee Agenda
9.1.22 APFC Board of Trustees Audit Committee Meeting Packet_revised

FY22 Permanent Fund Performance Report

In Uncategorized by Paulyn

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.

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Alaska Permanent Fund Special Meeting of the Board of Trustees

In Uncategorized by Jennifer Thorsteinson

The Alaska Permanent Fund Corporation’s (APFC) Board of Trustees will hold a Special Meeting on July 28, 2022, for the purpose of discussing APFC employee compensation, retention, and recruitment matters generally and in preparation for the FY24 Budget request to be approved at the Annual Meeting in September.

The public is invited to attend this virtual meeting via Webinar (information listed below), or telephonically.

July 28, 2022 Board of Trustees Special Meeting Agenda
July 28, 2022 Board of Trustees Special Meeting Packet

APFC’s Board of Trustees hold Special Meeting to address talent recruitment and retention issues

In Board of Trustees, Uncategorized by Paulyn

Juneau – The Board of Trustees held a Special Meeting in Anchorage and via webinar on July 12, 2022, to address long-standing APFC recruitment and retention issues, specifically related to salaries and incentive compensation.

“We recognize that recruitment and retention of world-class talent are essential to the prudent management and success of the Alaska Permanent Fund,” said APFC Board Chair Craig Richards. “We are thankful for the support received from the Alaska Legislature. Through these positive discussions, the APFC Board is working towards solutions to staff compensation challenges to ensure the Fund continues its multi-decade history of world-class asset management into the next generation.”

A follow-up Compensation Committee meeting is scheduled to take place on July 28.

Archived video recordings of all Board of Trustees meetings can be found on our website at https://apfc.org/bot-video-archive/.

APFC Board of Trustees Special Meeting – July 12, 2022

In Uncategorized by Jennifer Thorsteinson

The Alaska Permanent Fund Corporation’s (APFC) Board of Trustees will hold a Special Meeting on July 12, 2022 for the purpose of discussing APFC employee compensation, retention, and recruitment matters generally and in preparation for the FY24 Budget request to be approved at the Annual Meeting in September.

The public is invited to attend this meeting in person, via Webinar, or telephonically. Please see the agenda for specific details.

July 12, 2022 APFC Board of Trustees Special Meeting Agenda
July 12, 2022 APFC Board of Trustees Special Meeting Packet

APFC Welcomes Trustee Rubenstein and Trustee Brune

In Uncategorized by Paulyn

The Alaska Permanent Fund Corporation (APFC) welcomes Gabrielle “Ellie” Rubenstein and Alaska Department of Environmental Conservation Commissioner Jason Brune to the APFC Board of Trustees. Their service on the Board commences on July 1, 2022.

As CEO and Co-Founder of an investment firm, Trustee Rubenstein brings extensive private equity, investment management and corporate experience to the Board. Trustee Rubenstein also supports numerous organizations and initiatives through her family office and dedicates countless hours volunteering with the Red Cross of Alaska.

“The Alaska Permanent Fund is a globally recognized sophisticated investor. I am humbled and honored to serve on the Board. I look forward to getting to know the Trustees and Staff and working with them in service to the people of Alaska.” ~ Trustee Rubenstein

Trustee Brune has served as the Alaska Department of Environmental Conservation Commissioner since December 2018. Trustee Brune brings to the Board a wealth of knowledge on Alaska’s resources, the foundation of the Alaska Permanent Fund. Previously he served in various public and private roles throughout Alaska, primarily related to resource development and land management.

“Having been part of resource development in Alaska for decades, it is a tremendous honor to serve on the Board of Trustees. Through managing the Fund, the role that APFC holds in converting a portion of the State’s royalty wealth into a financial resource for generations of Alaskans is stewardship at its best.” ~ Trustee Brune

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APFC’s Public Equities and the Advantage of Time

In APFC Perspectives by Paulyn

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 run enables the Corporation to design and implement well-thought-out strategies and then let them play out over several years.

Over the past ten years, Fawad Razzaque, APFC’s Director of Public Equities, has been progressively incorporating more active management externally and internally throughout the portfolio to optimize its long-term returns. A key part of the management strategy is gauging market conditions and assessing how much risk is appropriate and where to allocate that risk budget. “If you’re too conservative, you could be leaving some returns on the table,” Fawad recognized, “if you’re too aggressive you are taking too much risk, and it may come back to bite you. There’s a fine line in between.”

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APFC’s Board of Trustees Q3 Meeting Overview

In Board of Trustees, News by Paulyn

Ketchikan – The Board of Trustees held its quarterly meeting in Ketchikan and via webinar on May 18-19, 2022, to consider the Alaska Permanent Fund’s third-quarter investment performance, associated capital markets insights, asset class updates, and a pacing plan for alternative markets. Updates to the Investment Policy and Governance Manual were also considered and adopted. In his hometown of Ketchikan, the Board and Corporation also took an opportunity to recognize Trustee Bill Moran’s sixteen years of dedicated service to the Fund, the Corporation and Alaska.

Performance
The investment focus of the Permanent Fund has always been targeted to a long-time horizon and measured against established benchmarks. Through the 3rd quarter, the Fund continued to outperform all targets in the 3-, 5-, 10-, and 20-year periods. The Total Fund outperformed the Performance and Passive Index benchmarks for the quarter while underperforming the Total Fund Return Objective of CPIU+5%. The Total Fund ended the quarter on March 31 with a value of $83.4 billion, a decrease of 1.4% from the previous quarter.
“While we are pleased to have continued delivering performance in excess of the Fund’s performance benchmark, the global markets have turned negative in 2022.” Said Marcus Frampton, APFC’s CIO, “Recognizing that this more difficult environment for stocks and bonds may continue, we are focused on maintaining a conservative posture for the Fund.”
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