Beyond the Numbers: What Key Financial Statements & Balance Report Mean for Alaskans

In News by Juliette Alldredge

JUNEAU - The Alaska Permanent Fund Corporation (APFC) is pleased to provide the preliminary end of FY24 financial statements and the beginning of the FY25 Fund Balance Report.

As of June 30, 2024, the end of FY24, the Alaska Permanent Fund has an unaudited total value of $80.3 billion. The value of the permanent savings in the Principal is $58.4 billion, with $12.2 billion of associated unrealized gains. The realized earnings generated from investment activity amounted to $4.2 billion in FY24, and this statutory net income was deposited into the Earnings Reserve Account.

Recognizing there is considerable movement in the transition between the end of FY24 and the beginning of FY25, we’ve broken the numbers down to highlight what they mean for Alaskans.

APFC has developed an infographic and launched a new webpage to help Alaskans "Understand Our Fund."

Beyond the Numbers: What Key Financial Statements & Balance Report Mean for AlaskansPress Release
Understanding Our FundInfographic
Understanding Our Fund - July 2024 EducationPresentation
apfc.org/era-durabilityWebsite

APFC Board Elects Officers, Takes Steps to Strengthen Governance

In Board of Trustees by Juliette Alldredge

FAIRBANKS, Alaska – The Board of Trustees of the Alaska Permanent Fund Corporation (“APFC”) held a meeting in Fairbanks and via Teams Webinar on July 24, 2024. Board action items included the approval of APFC’s Investment Policy Statement (IPS), which includes the new FY25 asset allocation and adoption of additional staff-proposed edits. Following reports from the Audit and Governance Committees during today’s meeting, the Board voted to approve several governance changes and requested staff and advisors continue working on governance practices and protocols to bring forward at upcoming meetings.

The Board elected new corporate officers and committee assignments and voted in Trustee Jason Brune as Chair and Trustee Adam Crum as Vice Chair. The Vice Chair serves as the Chair of the Governance Committee, and Trustee Ryan Anderson was appointed to Chair the Audit Committee. Trustee Ellie Rubenstein also announced her resignation from the Board of Trustees, effective August 1, 2024, and expressed gratitude to her colleagues and staff for the work accomplished during her tenure on the Board. Trustee Rubenstein served as Vice Chair of the Board and Chair of the Governance Committee from September 2023 to July 2024.

Chair Jason Brune remarked, “As Trustees, our service to Alaskans ensures that a portion of our State’s resource wealth benefits all generations. I would like to thank Trustee Schutt for his deep-rooted commitment to the Fund throughout his chairmanship; we are honored that he has been reappointed to the Board to continue his legacy of service.”

“As we heard today, Trustee Rubenstein will be resigning from the Board of Trustees. It has been an absolute honor to serve alongside her. I profoundly respect her professionalism, expertise, and commitment to our work on behalf of Alaskans. I am confident that her vision and dedication to advancing modern endowment best practices have significantly strengthened both the Fund and the Corporation.”

Click here to read the full press release.

APFC Governance Committee Advances Modernization Efforts

In Board of Trustees by Juliette Alldredge

JUNEAU, AK — The Alaska Permanent Fund Corporation’s (APFC) Board of Trustees Governance Committee convened today to advance ongoing efforts to modernize and enhance the Corporation’s governance practices. The committee reviewed recommendations to communications and governance policies, including updates to investment advisory, audit, cybersecurity, and communications protocols.

The recommendations aim to align APFC’s governance framework with industry best practices and support the organization’s mission of prudent and sustainable management of the Alaska Permanent Fund.

“This is a critical step in our continued commitment to strong governance,” said Ellie Rubenstein, Chair of the Governance Committee. “These recommendations reflect a comprehensive review and are designed to ensure APFC remains at the forefront of best practices in investment management and oversight.”

A summary of proposed amendments will be presented to the full Board of Trustees for consideration during the upcoming meetings scheduled for July 24 in Fairbanks, as well as during the annual meeting on September 25-26 in Anchorage. Proposed recommendations include the following:

  • Update the Charter of the Investment Advisory Group
  • Revise Audit Committee Processes and Purview
  • Establish a Communications Committee or Process for Enhanced Alignment
  • Utilize External Resources to Adopt Best Practices

APFC CEO Deven Mitchell emphasized the importance of these forward-looking reforms. “Good governance is foundational to our work at APFC,” said Mitchell. “These proposed updates are part of our approach to ensuring transparency, accountability, and long-term success in serving the interests of all Alaskans.”

Read the full press release here.

APFC Welcomes the Reappointment of APFC Trustee Ethan Schutt

In Uncategorized by Paulyn

Trustee Ethan Schutt was reappointed by Governor Dunleavy to the Alaska Permanent Fund Corporation Board of Trustees.

“I am honored to continue serving on the APFC Board of Trustees,” Trustee Schutt remarked. “My commitment to serving in the best interest of Alaskans – both current and future generations – remains steadfast.  In working together, we ensure the growth and prosperity of Alaska’s renewable financial resource.”

Trustee Schutt will continue to serve as a Fiduciary for the Alaska Permanent Fund in one of the four public member seats, serving staggered four-year terms. He served his first term on the Board from 2020 to 2024 and has served as Chair since 2022.

 

APFC Board of Trustees Regular Meeting – July 24, 2024

In Uncategorized by Jennifer Thorsteinson

The Alaska Permanent Fund Corporation’s (APFC) Board of Trustees will hold a Meeting on July 24, 2024, at the location identified in the agenda linked below. Agenda items include reports from the Audit and Governance Committees, Private Equity asset class presentations from internal and external managers, and updates to the Personnel Management Plan.

The public is invited to attend this meeting in person, virtually via Teams Webinar (registration information listed in the agenda linked below), or by phone. There will be an opportunity for public comment and participation at 8:30 a.m. when the meeting commences on July 24, 2024. If the public wishes to sign up for public comment, please indicate so when registering via Teams. Please sign up in advance to provide public testimony by emailing jloesch@apfc.org by noon on July 23.

*Please note that we are transitioning to using Teams Webinars for Board Meetings, which may require some extra time when registering for the first time. Please be aware of the change and allow yourself a few extra minutes.

July 24, 2024 APFC Board of Trustees Regular Meeting Agenda

July 24, 2024 APFC Board of Trustees Regular Meeting Packet

APFC Board of Trustees Governance Committee Meeting – July 18, 2024

In Uncategorized by Jennifer Thorsteinson

The Alaska Permanent Fund Corporation (APFC) Board of Trustees’ Governance Committee will hold a virtual meeting on July 18, 2024 at 1:00 p.m. The primary topic for the meeting is the discussion of possible amendments to the communications and other Governance Policies to forward to the board.

The public is invited to attend this meeting via the webinar (information listed in the agenda linked below), or telephonically.

July 18, 2024 APFC Board of Trustees Governance Committee Agenda

July 18, 2024 APFC Board of Trustees Governance Committee Packet

A New Fiscal Year: Committed Revenue

In News by Juliette Alldredge

June 30th marked the end of Fiscal Year 2024. At the end of July, the preliminary, unaudited FY24 financial statements will be available online at apfc.org/report-archive.

July 1st marked the beginning of Fiscal Year 2025. At the start of each fiscal year, APFC commits funding for the Percent of Market Value (POMV) draw for the following year – in this case, FY26. The Permanent Fund’s investment earnings – through the POMV draw – are a significant revenue source for the State of Alaska.

The annual POMV draw from the Fund’s Earnings Reserve Account (ERA) provides more than 50% of total Unrestricted General Fund revenue, which the State of Alaska relies heavily on.

The FY25 POMV draw of $3.7 billion is available to support the State’s current FY25 budget. The ERA has realized earnings of $3.8 billion committed for the future FY26 POMV draw.

Audit Committee Holds Risk Assessment and Audit Plan Review

In Uncategorized by Juliette Alldredge

The Board of Trustees Audit Committee of the Alaska Permanent Fund Corporation (APFC) held a virtual meeting via webinar on Thursday, June 6, 2024. The committee members met with KPMG, the Corporation’s auditors, to review the risk assessment and annual audit plan.

“It is our mission to maintain the highest standards of financial integrity by providing our stakeholders in Alaska and beyond with transparent and clear insights into our operations and performance,” remarked Committee Chair Adam Crum. “We greatly value the ongoing support provided by KPMG.”

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APFC TRUSTEES UNANIMOUSLY APPROVE UPDATED ASSET ALLOCATION

In Uncategorized by Paulyn

UTQIAGVIK – The Board of Trustees of the Alaska Permanent Fund Corporation (APFC) held its quarterly meeting in Utqiaġvik and via webinar on May 29 and 30. At the meeting, the Board unanimously adopted an updated asset allocation. In addition, the Board voted to approve the FY25 operating budget with a directive to maintain the Anchorage office and to contract with a third-party law firm to provide a review of Trustee and Staff communications over the past six years, as well as the recent unauthorized release of internal records.

Conducting meetings throughout the state underscores APFC’s commitment to work on behalf of all Alaskans. A meaningful exchange with the North Slope Borough included a sharing of the Permanent Fund’s history, global investment strategy, and growth in recognition of synergies that exist in managing investment funds to provide for generations through a renewable financial resource. The discovery of oil on the North Slope paved the way for the Permanent Fund, a financial resource that now benefits all Alaskans. It was a unique honor for the Trustees to hold this quarterly meeting in Utqiaġvik, where the Board came together in the interest of providing for future generations.

“I would like to thank Mayor Josiah Patkotak and the community for welcoming us. We recognize the significance of the North Slope as the ultimate source of funds that now comprise the Permanent Fund. In the delicate social and cultural balance that is Alaska, the Inupiat of the North Slope were the stewards of these lands that now comprise the source of our common and intergenerational wealth. We thank them for their hospitality.” -Chair Ethan Schutt

 

202405_APFC Board of Trustees Quarterly Meeting News Release

APFC Board of Trustees Audit Committee Meeting – June 6, 2024

In Uncategorized by Jennifer Thorsteinson

The Alaska Permanent Fund Corporation (APFC) Board of Trustees’ Audit Committee will hold a virtual meeting on June 6, 2024 at 1:00 p.m. The topics will be the presentation of the FY24 KPMG Audit Plan, FY24 year-to-date financial review, and an internal controls review.

The public is invited to attend the meeting via Webinar (information listed in the agenda linked below), or telephonically.

June 6, 2024 APFC Board of Trustees Audit Committee Agenda

June 6, 2024 APFC Board of Trustees Audit Committee Packet_revised