The Alaska Permanent Fund’s (Fund) investments gained 2.13% during the first quarter of fiscal year 2019 (FY19) and the Fund ended September 30, 2018 with total assets under management valued at $63.9 billion (unaudited). The Fund is comprised of two accounts, the Principal and the Earnings Reserve Account (ERA), that are invested using the same asset allocation with pro-rata shares attributed to each account. As of September 30, 2018, the value of the Principal is $46.9 billion and the value of the ERA is $17.0 billion. The 5.25% POMV (percent of market value) draw of $2.7 billion in FY19 to pay for government services and the 2018 fall dividend has been partially distributed with a transfer of $1.4 billion to the general fund. The remainder of the draw equaling $1.3 billion remains invested in the Fund and recorded as a liability for transfer through-out the remainder of the fiscal year.

Angela Rodell, APFC’s CEO, notes that “diversification and meaningful allocations to private market assets continue to benefit the Fund.  As the market becomes increasingly volatile, it is more important than ever to remember we invest with a 10, 25, 50 year or longer time horizon.  Our APFC team continues to be focused on building real financial wealth and resources for the State of Alaska.” …

Performance overviews and updates for each asset class will be presented to APFC’s Board of Trustees during their quarterly meeting on December 11-12, 2018 in Juneau.  Additional detailed information can be found at apfc.org and the following link for the Alaska Permanent Fund’s financial statements and investment performance.

Full press release for more information: 2018NOV02_APFC FY19 Q1

Juneau – The Alaska Permanent Fund Corporation (APFC) welcomes the recognition by PEI’s Private Debt Magazine as one of the “30 Most Influential Investors in Private Credit” for our internal management team’s pioneering contributions to this asset class.

On learning of this honor, Marcus Frampton, APFC’s Chief Investment Officer, remarked that “the purpose of our work is to generate attractive returns for the State not win awards, but it is great to see hard work and innovative thinking recognized with an industry ranking.”

The Alaska Permanent Fund’s Private Credit portfolio as of June 30, 2018 is valued at $1.2 billion and is comprised of investments that are asset backed and designed to generate high, regular income within the risk guidelines established by APFC’s Board of Trustees.  This portfolio exemplifies APFC’s work to bring more management in-house. Since coming on staff in 2016 Jared Brimberry, Senior Portfolio Manager, has been successful in developing this program from a fund-of-funds approach to a leading direct allocator and co-investor, while providing excellent returns, earning 8.79%, 6.47%, and 7.20% in the fiscal year, 3 years, and 5 years ended June 30, 2018.

In May of this year, APFC launched the $1 billion hybrid credit effort named Alaska Direct Alternative Credit (ADAC), which is a collaboration between our Private Credit and Fixed Income Plus internal management staff.  Investments in ADAC include a liquid portfolio of internally managed non-investment grade bonds and ETFs, and a private portfolio of co-investments alongside APFC’s private credit managers.

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The Board of Trustees held a special meeting to discuss legislative initiatives designed to further APFC’s ability to deliver compelling returns and a sustainable revenue stream for Alaska.

In providing guidance on rules-based withdrawals for the Fund and to help ensure the long term sustainability of using Fund earnings for the benefit of all generations of Alaskans, the Board passed Resolution 18-04 RESOLUTION OF THE BOARD OF TRUSTEES OF THE ALASKA PERMANENT FUND CORPORATION RELATING TO A SUSTAINABLE RULES BASED LEGAL FRAMEWORK FOR FUND TRANSFERS.  The Resolution is in support of SB26 Chapter 16 SLA 18, an important first step in codifying a set of rules to establish a sustainable annual draw from the earnings reserve account.

Chair Craig Richards noted “with the passage of Resolution 18-04, the Board of Trustees affirm the importance of formulaic management of transfers into and out of the Earnings Reserve Account. Through the resolution the Board of Trustees encourage and support methods of effective transfers that help ensure sustainability and long term growth of the Fund.

2018OCT17_APFC BOT Special Meeting

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The Alaska Permanent Fund Corporation (APFC) will hold a Special Meeting of the Board of Trustees on Wednesday, October 17, 2018 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.  The agenda includes incentive compensation and legislative initiatives and is available  under the Board of Trustees’ meetings page and thru the link below.

Special Meeting Agenda_2018OCT17

APFC Special BOT Meeting 2018OCT17_Updated

The Alaska Permanent Fund Corporation announced today that Marcus Frampton, CFA, CAIA has been promoted to serve as the Chief Investment Officer.

Chair Craig Richards provides: “After considering many highly qualified applicants for the CIO position, the Board is convinced that Marcus is best situated to continue the remarkable success the Permanent Fund investment portfolio has recently experienced.”

“I am pleased that Marcus has been promoted to CIO, and it demonstrates APFC’s commitment to providing a rich work experience and opportunities for career growth,” said Angela Rodell, Chief Executive Officer. “Marcus has proven himself to be a passionate and dedicated investor, contributing a tremendous amount of value to the Alaska Permanent Fund. I have confidence in his ability to take the Fund forward.”

In reflecting on his new role, Marcus notes that: “It is a tremendous honor to have the opportunity to serve as APFC’s next Chief Investment Officer.  I appreciate the confidence and trust that is being placed in me and look forward to working hard to deliver on the objectives of APFC’s stakeholders.”

20180928_APFC CIO Marcus Frampton

The Board of Trustees reviewed the fiscal year 2018 (FY18) 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 FY2020 budget, and accepted the Annual Audit as presented by KPMG. As noted in the 2018 Annual Report, released at the meeting, the Fund’s assets under management (AUM) reached an end of fiscal year high, totaling $64.9 billion as of June 30, 2018, comprised of $46.0 billion in the Principal of the Fund and $18.9 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 FY18 the Fund’s investments returned 10.74%, this strong performance puts the Total Fund in the top decile relative to other large public funds, and in the top third versus other large endowments/foundations. …

The Board of Trustees evaluated APFC’s approach to investing in Alaska and the Alaska Investment section of APFC’s Investment Policy & Procedures was amended to set forth aspirational goals for increased Alaska investment …

Furthering the interest in Alaska investment, a panel was conducted with representatives from investment firms with experience in geographically targeted emerging manager programs to inform Trustees about approaches and considerations for the development of an Alaska-based emerging manager program. The Board adopted Resolution 18-03 – RESOLUTION OF THE BOARD OF TRUSTEES OF THE ALASKA PERMANENT FUND CORPORATION SUPPORTING AN IN-STATE EMERGING MANAGER PROGRAM directing the Executive Director to create an In-State Emerging Manager Program. …

Full News Release:

20180927_APFC BOT Annual Meeting