Opinion Piece from APFC’s Board of Trustees

In Board of Trustees, Uncategorized by Paulyn

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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How is the Alaska Permanent Fund Structured?

In News by Paulyn

The Alaska Permanent Fund Corporation emphasizes transparency in everything we do, and we want Alaskans to know how to manage the Fund and what we’re planning for the future. Watch this short video that explains how it works and how it’s used to benefit all Alaskans.

Alaskans’ Guide to the Permanent Fund

In Uncategorized by Paulyn

As one of the most important sources of funding for Alaska’s state government, the Permanent Fund is the subject of great interest to Alaskans. As with any large, complex financial mechanism, public and legislative discussion of the Permanent Fund can get overly technical and challenging to understand by people who are not financial experts.

We are pleased to publish this guide that explains in universal terminology the basics of Alaska’s Permanent Fund, its history, how the Alaska Permanent Fund Corporation manages and invests the Fund’s assets, and the Fund’s essential role in Alaska’s future.

View the Guide

How Does APFC Make Money for Alaska?

In Uncategorized by Paulyn

Stocks and bonds are just two of the ways we invest the Permanent Fund to make money for Alaska and grow the Fund. Watch this video to learn more about what we invest in – and don’t be surprised if it’s somewhere you’ve been.

APFC’s Board of Trustees Annual Meeting 2020

In Board of Trustees, Uncategorized by Paulyn

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

What is the Alaska Permanent Fund?

In Uncategorized by Paulyn

The Permanent Fund can be tricky to understand. As a corporation dedicated to managing this fund, we put together a video to help you understand Alaska’s greatest financial asset – and where it came from. Check back later because we’re putting together videos on a series of topics to help you understand the Fund, its role in Alaska and more!

2020 Annual Report is available

In Uncategorized by Paulyn

Fiscal year 2020 started out very promising but by midyear the Fund’s investment staff decided to shift to a more conservative position with an overweight in asset allocation to bonds and cash. This proved to be a very prescient move when global markets crashed in March due to the COVID-19 pandemic. Through prudent management and opportunistic positioning, the Fund recovered most of its losses and ended the fiscal year with a positive return of just over 2%, a remarkable feat that proves there is strength in diversity of assets, investments and our team. Learn more about APFC’s strategies, investments and people in the 2020 Annual Report.

APFC Board of Trustees Annual Meeting

In Board of Trustees, Uncategorized by Jennifer Thorsteinson

The Alaska Permanent Fund Corporation (APFC) will hold its Annual Meeting of the Board of Trustees on September 23-24, 2020 telephonically via WebEx. The public is invited to attend the meeting by webinar; there will be opportunity for public comment and participation on September 23. Please indicate your interest in providing public testimony when registering with WebEx. Links are provided in the Agenda that can be found below. If you are unable to join via webinar please contact Jennifer Thorsteinson (jthorsteinson@apfc.org) at (907) 796-1519 at least two days prior to the meeting.
APFC Board of Trustees Annual Meeting Agenda
September 23-24, 2020 Annual Meeting Packet

July 31 Financial Statements

In Uncategorized by Paulyn

Start of FY21 financial statements for the Alaska Permanent Fund are now available.

As of July 31, 2020, the Alaska Permanent Fund has an unaudited total value of $63.6 billion.

  • The Principal value is $53.3 billion; which includes
    • $46.6 billion in constitutionally protected deposits
    • $6.7 billion in unrealized gains
  • The value of the Earnings Reserve Account (ERA) is $10.3 billion; which includes
    • $5.5 billion of unspent realized earnings
    • $3.1 billion commitment for the FY22 POMV draw
    • $1.7 billion in unrealized gains

The July 31, 2020 financial statements include the revised June 30, 2020 values for fiscal year-end 2020.

2020JULY31 APFC Financial Statements

2020JULY31 APFC History and Projections