The Board of Trustees reviewed the fiscal year 2019 (FY19) investment performance of the Alaska Permanent Fund (Fund) with presentations from Callan Associates and the Alaska Permanent Fund Corporation’s (APFC) asset class directors, approved a FY2021 budget proposal, and accepted the Annual Audit as presented by KPMG. As noted in the 2019 Annual Report, released at the meeting, the Fund’s assets under management (AUM) reached an end of fiscal year high, totaling $65.4 billion as of June 30, 2019, comprised of $47.8 billion in the Principal of the Fund and $18.5 billion in the Earnings Reserve Account.

Callan Associates, APFC’s performance consultant, noted that APFC’s portfolio is well diversified across all major asset classes employed by institutional investors. In FY19 the Fund’s investments returned 6.32%, this strong performance puts the Total Fund in the second quartile relative to other large public funds, as well as other large endowments/foundations. As of June 30, 2019, the Fund’s long-term performance shows a cumulative return of 9.22% over the 10-year period and 6.35% over the 20-year period.

On September 20, 2019, APFC announced the launch of the Alaska Investment Program as directed by the Board Resolution 18-03 to establish an in-state private markets investment program utilizing external fund managers with an initial allocation of $200 million.  Chair Craig Richards notes that after a year in the making, he is “excited that the In-State Emerging Manger Program is now in place and looks forward the program’s two mangers, McKinley Capital Management, LLC and Barings, LLC., generating compelling returns for the Fund while raising capital in support of Alaska based private market investment opportunities.

The Board re-elected Trustee Richards as Chair and Trustee Brady as Vice-Chair.

The Alaska Permanent Fund Corporation is pleased to announce the launch of the Alaska Investment Program. Recognizing the opportunity to earn attractive returns by backing emerging private market fund managers and private market investment opportunities in Alaska, APFC’s Board of Trustees, through Resolution 18-03, directed APFC staff to select external private market fund managers to execute an Alaska focused private markets investment program with an initial allocation of $200 million.

Consistent with the requirements of Alaska Statute 37.13.120(c), this strategic approach to identifying and supporting talented private market fund managers and investments within Alaska will target a rate of return and a risk profile consistent with similar investments outside of Alaska.

Following a competitive process, two external fund managers were selected to implement this strategy: McKinley Capital Management, LLC and Barings, LLC.  At a presentation before Accelerate Alaska in Anchorage, CEO Angela Rodell noted “we are excited to get this program underway and look forward to working with these two managers to achieve competitive, market-based investment returns and capture investment potential right here in Alaska.”

McKinley Capital Management, LLC (“McKinley”) was founded in 1990 and today is the largest private financial services company in Alaska. McKinley currently manages approximately $5 billion worldwide for corporate and public pension funds, sovereign wealth funds, and other institutional investors.

A subsidiary of MassMutual, Barings, LLC is a global investment firm dedicated to meeting the evolving needs of clients and customers. Headquartered in Charlotte, North Carolina, Barings LLC and its subsidiaries have $325 billion under management* and maintain a strong global presence with business and investment professionals located across North America, Europe and Asia Pacific.   *as of June 30, 2019

Additional information on the In-State Investment program and contact information for McKinley Capital Management, LLC and Barings, LLC is available on our website under ‘What We Do / In-State Investments’.

APFC Annual Board of Trustees Meeting

The Alaska Permanent Fund Corporation (APFC) will hold its Annual Meeting of the Board of Trustees on September 25-26, 2019 in Anchorage, AK. The public is invited to attend this meeting in-person or by teleconference; there will be an opportunity for public comment and participation.  Agenda items include: approval of the annual audit, review APFC’s asset allocation, and the FY20 budget. There will also be asset class updates, a performance report from Callan Associates, a presentation from Allianz Global Investors.   Please see details at the top of the agenda to connect to the meeting via webinar.

Agenda

Annual Meeting Packet

APFC Audit Committee Meeting & Budget Work Session

The Alaska Permanent Fund Corporation (APFC) will hold its Audit Committee and Board of Trustee Budget Work Session on September 5, 2019 in Juneau, AK. The public is invited to attend the meetings in-person or by webinar; there will be opportunity for public comment and participation.

Agendas and Packets can be accessed on the Board of Trustees Meetings Page.

The Alaska Permanent Fund’s investments returned 6.32% in value for fiscal year 2019.  With the close of the state fiscal year, the Total Fund Value as of June 30, 2019, is $66.3 billion (unaudited).

The value of the Principal totals $47.8 billion, it includes $41.5 billion in constitutionally protected deposits and $6.3 billion in unrealized gains.

For the same time period, the value of the ERA totals $18.4 billion, it includes $10.1 billion of accumulated realized earnings and $5.9 billion of committed realized earnings ($1.9B partial POMV to GF and $4.0B to the Principal per HB39), as well as $2.4 billion in unrealized gains.

A full review of the Fund’s portfolio and returns will be provided at the Annual Meeting of the Board of Trustees scheduled for September 25-26, 2019 in Anchorage.

The Alaska Permanent Fund Corporation (APFC) will hold a Planning Session on August 6, 2019 at the Eagle Valley Center, 24600 Amalga Harbor Rd. Juneau, AK 99801. The public is invited to attend this meeting in-person, please note that there will be no opportunity for public comment during this planning session and no official action will be taken.

The meeting agenda is attached to this notice and will also be available at www.apfc.org. There will be a discussion regarding the strategic vision for APFC for FY22 through FY26. The meeting is for discussion and planning purposes only, and no official votes of the Board will be held. The public is advised that during the regular Budget Planning session scheduled for September 5^th in Juneau, the staff’s recommendation for the official Strategic Plan will be presented to the Board of Trustees for review. At the Annual Meeting September 25^th-26^th in Anchorage, the Board will take action on adopting the Strategic Plan.

Agenda