The Alaska Permanent Fund Corporation (APFC) will hold its Audit Committee Meeting on May 19, 2020 telephonically via WebEx. The public is invited to attend the meeting by webinar; there will be opportunity for public comment and participation. Please indicate your interest in providing public testimony when registering with WebEx. Please contact Maggie Meiners (mmeiners@apfc.org) at least one business day prior to the meeting if you experience issues when registering.

Agenda

20200520-21 Audit Packet

The Milken Institute released new essays in their #PowerofIdeas series on the unique challenges, opportunities for growth, and collaborative responses associated with the COVID-19 pandemic.  See Essays: https://milkeninstitute.org/power-of-ideas

APFC’s CEO, Angela Rodell, is pleased to share her contribution to this diverse collection of thought leadership. See Angela’s Essay: https://milkeninstitute.org/power-of-ideas/mindset-future

Alaskans and Business Partners –

We find ourselves in extraordinary times coming together to ensure the health and safety of our families and communities.

To support efforts underway to slow the spread of the virus, APFC employees are working remotely and our office is closed to the public.

Be assured that our staff is working at full capacity and is fully engaged in managing the portfolio through this extreme market cycle.

Stay well and support one another.

The Alaska Permanent Fund Corporation

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

Alaska Permanent Fund Corporation Remains Diligent

As the public equities markets head into ‘bear market’ territory, APFC remains diligent in our management of the Alaska Permanent Fund and in fulfilling our obligations to Alaskans.

APFC’s team is navigating through the market downturn by looking into this period of uncertainty to find opportunities that will bring long-term benefits during the recovery phase.  APFC’s investment strategies have been reaffirmed as the diverse asset allocation has provided some relief in offsetting the significant drops in public equities performance.

Angela Rodell, Chief Executive Officer, notes that – “We recognize this is a very scary time for everybody. There is a lot of concern for Alaskans, our local and state economy, and both the emotional and economic toll this virus is taking on all of us. I want to assure Alaskans that the Fund continues to be a source of stability. Yes, we have taken losses, but the diverse mix of assets along with our long-time horizon means we are keeping to our commitment to provide a stable source of revenue for Alaskans to rely on.”

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.  The market close on March 12 took the Fund value to $59.9 billion.

The cumulative effect of this month’s volatility on the ERA balance will be available when the March financial statements are published. The ERA balance cannot be calculated until all investment accounts have been reconciled and closing entries made. The March 31, 2020 financial statement will be available mid-April and will include values for the Principal and ERA based on that closing date.

APFC recognizes the essential role that the Alaska Permanent Fund holds in providing a dependable and stable revenue stream for the State of Alaska.  The FY20 $2.9 billion percent of market value (POMV) distribution to the state general fund has been fulfilled, and the FY 21 commitment to distribute $3.1 billion under the POMV formula will be met based on current holdings in the Earnings Reserve Account.

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