APFC’s investment authority under AS 37.13.120 (a) Investment Responsibilities requires the Board of Trustees to adopt regulations “specifically designating the types of income-producing investments eligible for investment of fund assets” in accordance with the prudent investor rule.

AS 37.13.206 Regulations guides this process, including the public notice requirements.

APFC is proposing to amend the regulation regarding the investment of permanent fund assets into real estate (15 AAC 137.450) to allow our investors to consider a broader array of real estate investment opportunities and remain competitive in today’s market. The proposed it is designed to include all of the foreseeable, real estate investment opportunities that the APFC Real Estate Team believes are prudent to achieve the risk and return profile appropriate for this asset class.

This proposed regulation change will be included on the February 17-18 Board of Trustees’ meeting agenda.

202101_APFC public notice of proposed regulation changes

202101_DRAFT APFC REGULATION CHANGES 15 AAC 137.450

Juneau – The Board of Trustees held its quarterly meeting via webinar on December 9-10, 2020 to consider the Alaska Permanent Fund’s first-quarter investment performance and associated capital markets insights. …

Marcus Frampton, Chief Investment Officer, recognizes that “the expected return environment for institutional portfolios today are challenged by high stock valuations and low-interest rates that are prevailing.  Staff’s two most notable strategies for achieving the Fund’s stakeholders’ return expectations are a material overweight to value stocks over growth stocks and the continued growth of our private equity program.  As we reviewed at this Board meeting, the ten-year returns on APFC’s private equity strategy have been outstanding, and in the fourth quarter of the calendar year 2020, we started seeing markets turn in favor of value stocks.” …

Angela Rodell, Chief Executive Officer, remarked that “the presentations highlighted the challenges that APFC faces in our dual role of protecting the Principal of the Fund and in generating revenue to support draws for state services. Currently, the stock market reflects strong growth, but the long-term outlook is tempered at best. Energy and tourism, two sectors Alaska heavily relies on, are both in transition, indicating the state’s continued reliance on the Fund in the coming year.” …

In conclusion, Chair Moran notes that “throughout this pandemic, the APFC team and our global partners continue to deliver results and returns that benefit the portfolio, and thus benefit Alaskans.” He encourages Alaskans to learn more about the Permanent Fund’s history and APFC’s investment management role in the recently released publication ‘An Alaskan’s Guide the Permanent Fund.’

The next meeting of the Board of Trustees will be held in Juneau, Alaska, on February 17-18, 2021.

Full news release: 202012_APFC BOT Meeting Q1

The Alaska Permanent Fund Corporation (APFC) will hold their Quarterly Meeting of the Board of Trustees on December 9-10 telephonically and by Webinar. The public is invited to attend this meeting via Webinar (information listed on agenda linked below) or telephonically. There will be an opportunity for public comment and participation at 8:30 a.m. when the meeting commences on December 9. 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 prior to the meeting.

APFC Board of Trustees Quarterly Meeting Agenda
APFC Board of Trustees Quarterly Meeting Packet

Please note: The event password for December 9, 2020 was accidentally set up with the acronym transposed, so the password to get into today’s meeting is AFPC120920. So, the password on the agenda for today is incorrect. This password for tomorrow’s event is correct.

Trustees Explore Best Practices to Sustain the Permanent Fund

With the State relying on the Alaska Permanent Fund’s realized earnings for more than 70% of its unrestricted general funds, the Alaska Permanent Fund Corporation’s Board of Trustees is keenly focused on the Fund’s ability to provide both enduring intergenerational equity and reliable income-generation.

This paradigm brings its own set of risks and rewards, and as the Fund’s stewards, it is our job to equip the Fund for success for decades to come. To that end, we asked Dr. Malan Rietveld, a leading expert in sovereign wealth funds, to analyze our peer funds in the U.S. and worldwide to determine why some flourish and some flounder. Based on this work, we published Trustees Paper Volume 9, identifying five lessons critical to any sovereign wealth fund’s intergenerational success.

The five lessons are included in the full opinion piece: APFC Trustee Paper 9_BOT Opinion

Trustees Paper Volume 9, “The Role of Sovereign Wealth Funds in Saving, Stabilization, and Generating Income,” is posted in the Report Archive/Trustees’ Papers at apfc.org.

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The Alaska Permanent Fund Corporation (APFC) will hold a Board of Trustees Risk Workshop on November 5, 2020 telephonically. The public is invited to attend this meeting by webinar. Please see the Packet (linked below) for information.
The agenda item is informational only, no board action will take place.

Risk Workshop Packet_BOT_2020.11.05

The Board of Trustees reviewed the fiscal year 2020 (FY20) investment performance of the Alaska Permanent Fund (Fund), approved a budget proposal to bring forth for inclusion in the FY22 operating budget, considered an overview of risk as it relates to the portfolio, and accepted the Annual Audit presented by KPMG.

Angela Rodell, Chief Executive Officer, notes in reaction to presentations on the capital markets and the global outlook that “we learned this week that this period of great uncertainty is expected to continue for some time with global interest rates at historic lows and a world pandemic that continues to impact economic growth. Our ability to generate large returns will be much more challenging going forward, but we are pleased the actions taken by the Board this week will help keep the Fund on track to meet our obligations and responsibility to all Alaskans.”

Per APFC’s Bylaws, an election of corporate officers was held as part of the Annual Meeting protocols. Trustee Bill Moran was elected to Chair and Trustee Steve Rieger to Vice-Chair of the APFC Board. Assignments to the Governance and Audit Committees will be posted on our website at a later date.

Please be sure to view the preceding ‘Fund News Posts’ to download the 2020 Annual Report and view our new educational video asset “What is the Permanent Fund?”

Our Full News Release is available here: 20200924_APFC BOT Annual Meeting 2020