Juneau – The Board of Trustees held its quarterly meeting at the Elizabeth Peratrovich Hall in Juneau and simultaneously via webinar on May 19-20, 2021, to review the performance of the Alaska Permanent Fund through the third quarter of fiscal year 21 (FY21), review risk metrics, assess the capital markets outlook, incorporate updates in the investment policy, get an update on pacing plans for Real Estate and Alternative Investments, and focus on the Real Estate portfolio.

Chair Bill Moran remarked that “the growth of the Alaska Permanent Fund is unprecedented. We must put this unparalleled growth into context and recognize it is not sustainable. Recessions are likely in our future and will have a negative impact on the Fund, which will impact the State.  Knowing that the State now gets more than 70% of its revenue from annual withdrawals from this Fund, we must remain diligent in managing and understanding our portfolio risk.”

The total value and the stellar performance of the Alaska Permanent Fund continue to dominate the fiscal year-to-date narrative. Through the third quarter of FY21, a period beginning July 1, 2021 and ending March 31, 2021, the Alaska Permanent Fund continued to exceed established performance benchmarks and projections, increasing to a total value of $76.3 billion, which represents an increase of more than $11 billion since the beginning of the fiscal year.  The total Fund return through the third quarter of FY21 was 22.69% and 5.95% for the individual quarter ended March 31; this was fueled mainly by public and private equity markets.  Callan reports that this performance placed the Total Fund above the median relative to the performance of other public funds and large endowments/foundations.

The Real Estate portfolio plays a unique and essential role in APFC’s investment portfolio in terms of diversification, regular cash flow income, and long-term growth. As an inflation-resistant cash yield, Real Estate tends to embody characteristics of both debt and equity, where lease payments resemble fixed income obligations. At the same time, the property’s residual value contains equity-like attributes. While the asset class has struggled in recent years, it remains central to the investment portfolio for the Fund.

“The successful growth of the Fund’s Real Estate portfolio up to the ultimate target allocation of 12% over the next four years is a key focus for the Investment Team.  High quality private Real Estate investments held directly or through open-ended funds remains one of the most attractive inflation-protection cash yielding investments in the market today,” commented APFC CIO, Marcus Frampton.

2021_05_APFC BOT Meeting Q3

The Alaska Permanent Fund Corporation (APFC) Board of Trustees will hold their Quarterly Meeting on May 19-20, 2021. The public is invited to attend this meeting via Webinar (information listed on the agenda linked below) or in person at the address below*. There will be an opportunity for public comment and participation at 8:30 a.m. when the meeting commences. If the public wishes to sign up for public comment, please indicate so when registering via WebEx. If you have any issues registering for public comment, please reach out to Jennifer Thorsteinson (jthorsteinson@apfc.org) at least one business day before the meeting.

*Please note that while APFC’s May Quarterly Board of Trustees meeting will be open to the public, the Andrew Hope Building (320 W Willoughby Avenue) where the meeting will be held has limited entry at this time.

Please park in a parking lot on either side of the building (but not in a space reserved for any individuals). Enter through the double doors towards the middle of the building and let security know you’re there for the APFC Board Meeting. Please plan to arrive early to sign in and have a temperature check required to enter the building. Upon entering the Elizabeth Peratrovich Hall there will be an APFC sign-in sheet for all members of the public.

May 19-20, 2021 APFC Board of Trustees Quarterly Meeting Agenda

May19-20, 2021 APFC Board of Trustees Quarterly Meeting Packet

The Alaska Permanent Fund Corporation (APFC) Board of Trustees will hold an Audit Committee Meeting on May 18, 2021. The public is invited to attend this meeting via Webinar (information listed on the agenda linked below) or in person at the address on the agenda. There will be an opportunity for public comment at 2:30 p.m. when the meeting commences. If the public wishes to sign up for public comment, please indicate so when registering via WebEx. If you have any issues registering for public comment, please reach out to Jennifer Thorsteinson (jthorsteinson@apfc.org) at least one business day before the meeting.

May 18, 2021 APFC BOT Audit Committee Agenda
APFC Board of Trustees Audit Committee Meeting Packet

The Alaska Permanent Fund Corporation has recently added two experienced professionals, Chirag H. Shah, Senior Portfolio Manager, and Nader Sohraby, Senior Associate, to its $13B+ Private Equity and Special Opportunities team.

Steve Moseley, Head of Alternative Investments at APFC, said: “We are very excited that Chirag and Nader have joined us to expand our capabilities and help deliver excellent investment returns for the benefit of all Alaskans.”

Chirag has over 15 years of industry experience globally, including ten years leading private equity fund investments and co-investments at DB Private Equity and GE Asset Management.  He started his career in investment banking at Citi / Salomon Smith Barney in New York and Singapore.  Chirag is also actively engaged in the broader PE community, serving as an advisory board member of the Hicks, Muse, Tate & Furst Center for Private Equity Finance at The University of Texas at Austin and involved with SEO’s Alternatives Investments program, which is focused on improving opportunities in the alternatives industry for traditionally underrepresented communities.  He holds an MBA and BBA from The University of Texas at Austin.

Nader has five years of investment banking experience, most recently at J.P. Morgan in New York, where he focused on mergers and acquisitions and capital formation across the healthcare industry.  Prior to J.P. Morgan, he worked in investment banking at Citi in New York.  He began his career at Goldman Sachs in its Global Investment Research division.

Private Equity International recently recognized APFC as the 2020 LP of the Year in North America. This is the third year the team has won, having also been recognized by peers in 2017 and 2018.  These honors reflect the Private Equity and Special Opportunities team’s ongoing commitment to developing a worldwide competitive investment strategy with partnerships that contribute to successfully fulfilling APFC’s mandate.

2021_04_APFC Private Equity Team

APFC’s Board held a virtual workshop to review the long-term asset allocation plan for the Alaska Permanent Fund and the capital market projections provided by Callan, APFC’s general consultant.

Asset allocation is a primary component of a long-term, risk-adjusted return and is based on strategic decisions: return objective, risk appetite, liquidity need, and resources.

Angela Rodell, Chief Executive Officer, states that ‘this workshop provided an important foundation to understanding the Fund’s asset allocation and the impact of any changes. Changes to the portfolio are not made lightly, as the stability of the Alaska Permanent Fund is so vital to the stability of the State.

The Board of Trustees will consider any action to change the asset allocation at their next meeting, scheduled for May 19-20, 2021, in Juneau, Alaska.

News Release – APFC Asset Allocation Workshop