Special Telephonic Meeting of the Board of Trustees

In Uncategorized by Maggie Meiners

The Alaska Permanent Fund Corporation (APFC) will hold a special Meeting of the Board of Trustees on March 5, 2020 telephonically. The public is invited to attend this meeting by webinar; please see the agenda (linked below) for information.

Agenda item is limited to discussion and action on a board resolution that provides recommendations regarding the structure and balance of the Principal and Earnings Reserve Account in light of the Percent of Market Value draw enacted in 2018 in SB 26.

 

Agenda

20200305 Special Meeting Packet

 

The APFC Board of Trustees Recognizes Fund’s Evolving Role

In Uncategorized by Paulyn

The Board of Trustees held its quarterly meeting in Juneau, Alaska on February 19-20, 2020 to review the performance of the Alaska Permanent Fund through the first half of the fiscal year 2020 (FY20), to consider the current asset allocation and investment policy, and to discuss the structure of the Fund.

The Alaska Permanent Fund’s investments were up 5.38% in value during the first half of the fiscal year 2020 and up 15.71% in the 12-month period for the calendar year 2019. Returns for each asset class and their respective benchmarks are available under Performance.

In building upon the recommendations brought forth in the Trustees’ Paper Volume 9 released in January of 2020, the Board of Trustees evaluated the structure of the Fund and its ability to meet the expectations of providing both enduring intergenerational growth and reliable income-generation functions. Based on the Board’s direction, policy recommendations will continue to be developed and brought forth at a later meeting for consideration

Chair Craig Richards remarked that “the separation of the Permanent Fund into two accounts, the Principal and the Earnings Reserve, is a historical artifice of 1970’s accounting concepts. As the Board heard today, not having a single fund creates an approximately 50% chance that the Permanent Fund will not be able to fund the POMV distribution including dividends, in one or more years over the next 20-year period.  Ideally, we will work toward legal changes that combine the two accounts.  Alternatively, we must have a clear strategy to maintain a robust ERA balance during down market cycles.”

APFC was pleased to welcome Senate President Giessel and Speaker of the House Edgmon to the meeting together with Senator von Imhof and Representatives Foster, Johnston, and Kopp.  Legislative support for the work that the Board of Trustees and the APFC Staff are doing to manage and invest the Fund is essential for our continued success. In working together, we will build on the legacy established over the past 40 years and provide renewable financial resources for Alaskans to benefit from for the next 40 years and beyond.

In summary of the two-day meeting, Angela Rodell offered: “My takeaway for Alaskans is this meeting highlights the effort that the Staff and Trustees continue to make in balancing the needs of our State and current generation while ensuring we have a robust asset to benefit future generations of Alaskans.”

The next quarterly meeting of the Board of Trustees will be held on May 20-21, 2020 in Kenai, Alaska.

 

2020FEB_APFC BOT Quarterly Meeting FY20 Q2

In Uncategorized by Maggie Meiners

APFC Quarterly Board of Trustees Meeting

The Alaska Permanent Fund Corporation (APFC) will hold its Quarterly Meeting of the Board of Trustees on February 19-20, 2020 in Juneau, AK. The public is invited to attend this meeting in-person or by webinar; please see the agenda (linked below) for information.

Agenda items include: asset class updates from real estate and alternatives, a performance review of the portfolio from Callan LLC, as well as presentations on the earnings reserve account, APFC’s asset allocation strategy, and investment policy.

 

Agenda

Packet

 APFC congratulates CIO Marcus Frampton, CFA, CAIA, FRM on being recognized amongst Chief Investment Officer Magazine’s Power 100 of 2019

In Uncategorized by Paulyn

In this 8th edition of the Power 100 list, the publication lauds “asset owners who have distinguished themselves in navigating a changing, and often perilous, market landscape.” This recognition factors in the contributions and qualities that CIOs bring forth for the ongoing success of the portfolios they oversee, the relationships they cultivate, and the teams that they develop.

The 2019 Power 100 | Chief Investment Officer

8th Annual List of the World’s Top CIOs

Congratulations Marcus on this deserved honor!

APFC’s Board of Trustees Considers Fund’s Evolving Role

In Uncategorized by Paulyn

The Board of Trustees held its quarterly meeting in Fairbanks, Alaska on December 3-4, 2019. During the meeting, the Board examined the first-quarter investment performance of the Fund for the fiscal year 2020 (FY20) and discussed the paradigm shift of the Alaska Permanent Fund to an annual value-based methodology for consistent and stable withdrawals from the Earnings Reserve Account (ERA).

Chair Craig Richards notes that “the transition to the Permanent Fund contributing to state revenues through the Percent of Market Value (POMV) has created several new issues the Board of Trustees and state policymakers need to work through. Perhaps the most important is the risk that repeated bad years of market returns could result in the ERA not being able to fund state government and the dividend.  The Board of Trustees looks forward to developing a deep understanding of this risk, and developing recommendations to minimize it.”

Full news release: 201912_APFC BOT Quarterly Meeting News Release

APFC Quarterly Board of Trustees Meeting

In Uncategorized by Maggie Meiners

The Alaska Permanent Fund Corporation (APFC) will hold its Quarterly Meeting of the Board of Trustees on December 3-4, 2019 in Fairbanks, 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: an update on APFC’s Real Estate portfolio, a discussion on APFC’s strategic plan, and an in-depth look at the Earnings Reserve Account. There will also be asset class updates, a performance report from Callan Associates, and a presentation from RCL Co. on Real Estate Strategies.

Agenda_APFC BOT Meeting_20191203-04_Revised

Alaska Permanent Fund Returns for the first quarter of FY20

In Uncategorized by Paulyn

The Alaska Permanent Fund’s (Fund) investments gained 1.24% during the first quarter of the fiscal year 2020 (FY20), and the Fund ended September 30, 2019, with total assets under management valued at $64.1 billion (unaudited).

… In assessing the Fund’s FY20 Q1 performance, APFC’s Chief Investment Officer Marcus Frampton, CFA, CAIA, FRM notes that: ” … In the context of turbulent markets and a constantly changing landscape, I am pleased with this performance and believe that the portfolio is well-positioned to outperform going forward.”

… For planning purposes, APFC references both a current fiscal year and a 10-year forecast for the projected return of the Fund that is provided by our performance consultant, Callan Associates. It is understood that there will be a wide range of returns delivered by each asset class to the total Fund performance over any given time. Callan Associates projects a total return of 7% over the next 10-year period for the portfolio that APFC has constructed for the Fund.  …  It is accepted that actual results for individual years will be higher and lower, but it is expected that they will average to 7% over the forecasted period of 10 years.

… Performance overviews and updates for each asset class will be presented by Callan Associates and APFC’s Directors to APFC’s Board of Trustees during their quarterly meeting on December 3-4, 2019, in Fairbanks. The public is welcome to attend the meeting in person or via webinar, and the agenda will be posted on apfc.org one week in advance of the meeting.

Full News Release FY20 Q1

Total Fund Values as of September 30, 2019 – Fiscal Year 2020 Q1

In Uncategorized by Paulyn

The Total Fund Value as of September 30, 2019, is $64.1billion (unaudited).

The value of the Principal totals $47.9 billion, it includes $41.6 billion in constitutionally protected deposits and $6.3 billion in unrealized gains.

The value of the ERA totals $16.2 billion, it includes $6.4 billion of accumulated realized earnings and $7.7 billion of committed realized earnings ($3.1B POMV in FY21, $4.0 B to the Principal in FY20, and Inflation Proofing for FY20), as well as $2.1 billion in unrealized gains.