APFC’s November Reports: Market Recovery and Financial Updates

In News by Juliette Alldredge

The November History & Projections report and the monthly financial statements are now available.

With the publication of the November reports, we would like to highlight –

  • Market conditions are strengthening, and as a result, the Fund values are recovering.
  • While accounting net income, including realized and unrealized portfolio gains, has improved, it lags behind projections.  Through November, accounting net income is $792.4 million FYTD 2024 vs Callan’s mid projection of $5,468 million for FY 2024.
  • Statutory Net Income, the realized earnings of the Fund that are deposited into the Earnings Reserve Account, is also not as robust as projections. Through November, statutory net income is $1,404 million FYTD 2024 vs Callan’s mid projection of $3,839 million for FY 2024.

Prior to the November report, forecasts presented were based solely on Callan’s projections and did not incorporate actuals to date.

To provide Alaskan stakeholders with updated projections, moving forward through the remainder of the fiscal year 2024, APFC will include FYTD actuals and Callan’s projections for the rest of the fiscal year in the performance forecasts for accounting net income, Statutory Net Income, and fund values.

 

APFC Board Approves Governance Policy and Seeks Public Input on Strategic Plan in Quarterly Meeting

In Board of Trustees by Juliette Alldredge

The Alaska Permanent Fund Corporation (APFC) Board of Trustees conducted their quarterly meeting on December 13th and 14th to review the performance updates for the first quarter of FY24. The asset class directors reported on staffing and strategy, and the board members were briefed on the future use of AI in the workplace. During the meeting, the Board discussed three action items.  They approved a governance policy to simplify the Executive Director evaluation process and noted the need for additional consideration of both the strategic plan and Trustee Paper #10 which will be forwarded to the February 2024 meeting.

“We value our staff and employees and recognize the importance of safeguarding and investing in their success. To this point, we want to institute protections – at the APFC governance and Alaska legislative levels – to guarantee the privacy and security of personnel records across the Corporation. This is widely recognized as fundamental for ethical and secure employment management,” noted APFC Board Chair Ethan Schutt.

Read more about the Fund’s performance and the meeting in the full news release.

Board of Trustees Vote to Simplify Executive Director Evaluation and Review Process

In Board of Trustees, News by Juliette Alldredge

JUNEAU – The APFC Board of Trustees voted on December 13 during the quarterly meeting to simplify the Executive Director evaluation. The vote comes ahead of the end-of-year review of the Executive Director’s performance.  

The simplification of the review process for the Executive Director includes updates to the Governance Charters to allow more candid feedback and wider participation from the whole board with a verbal review during an executive session. The process began after a comprehensive third-party review of the Board’s governance charters that were first presented to the Governance Committee meeting on May 9, 2023, and then at the quarterly Board meeting on May 17-18. The APFC Governance Committee forwarded the recommendation to the Board in November. 

“This was a thorough process that began with a professional third-party recommendation. It spanned several months, giving ample opportunity for wide discussion among the Board and the public. Having a confidential performance evaluation is a normal, fair, and appropriate approach for the privacy and integrity of the Executive Director and his or her relationship to the Board,” said APFC Chair Ethan Schutt.  

 

Quarterly Meeting of the Board this Week

In Board of Trustees by Juliette Alldredge

JUNEAU –   The APFC Board of Trustees will hold their quarterly meeting in Juneau on December 13-14.

“The funding that comes from the Permanent Fund Corporation’s work provides for state services that correlate to local services and programs, including the dividend. We encourage Alaskans to stay informed,” said Deven Mitchell, Executive Director, Alaska Permanent Fund Corporation.

You may submit written comments and testimony anytime! To provide public comments and statements to the APFC Board of Trustees, email boardpubliccomment@apfc.org

Time for spoken public testimony will be available at the beginning of the meeting; please see the agenda to sign up and by emailing jloesch@apfc.org by 4 pm December 12.

Information including the agenda and webinar, is on the Board of Trustees Meeting page.

The Role of Co-Investments in the APFC Portfolio

In APFC Perspectives by Juliette Alldredge

APFC has been an active co-investor, having completed over 50 different investments over the last decade. This tool enables APFC to tactically deploy capital in a more attractive investment environment to drive stronger returns and asset growth. Unlike other groups that may have a formalized program or targeted deployment rate, APFC employs an opportunistic approach where we seek out interesting and attractively priced opportunities.

While co-investment activity declined in the last several years as private markets valuations reached record levels, recent activity has increased, with four deals completed from March through August 2023 accounting for almost one-third of the capital deployed during the same period. “We saw the opportunity to invest in some very high-quality businesses at attractive prices and were able to capitalize on those opportunities,” remarked Allen Waldrop, Director of Private Equity. These recent co-investments also bring significant potential fee savings to APFC, which further contributes to growing the asset base.

“If we see compelling opportunities in the spaces we like, then we will do them, but if the market isn’t cooperating or we are not seeing interesting deals, we are fine sitting on the sidelines.”  – Allen Waldrop

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December 13-14, 2023 Board of Trustees Quarterly Meeting

In Board of Trustees by Jennifer Thorsteinson

The Alaska Permanent Fund Corporation’s (APFC) Board of Trustees will hold their Quarterly Meeting on December 13-14, 2023. Agenda items include: approval of the four-year Strategic Plan, a Governance Committee recommendation regarding changes to the Executive Director Evaluation process, asset class overview (Absolute Return presentations), and more.

The public is invited to attend this meeting in person, via Webinar (information listed above), or telephonically. There will be an opportunity for public comment and participation at 8:30 a.m. when the meeting commences on December 13, 2023. If the public wishes to sign up for public comment, please indicate so when registering via WebEx. Please sign-up for public testimony by emailing jloesch@apfc.org by 4 pm December 12.

Dec. 13-14, 2023 APFC Board of Trustees Quarterly Meeting Agenda

Dec. 13-14, 2023 APFC Board of Trustees Quarterly Meeting Packet_Revised 12.13.2023

Governance Committee Forwards Simplification of the Executive Director Review Process

In Board of Trustees by Juliette Alldredge

The Governance Committee of the APFC Board of Trustees recommends simplifying the APFC Executive Director evaluation and review process. The Committee decided on making the recommendation during a scheduled public meeting on November 29, 2023.

With the upcoming end-of-year review of the Executive Director’s performance, the Governance Committee took steps to ensure an effective evaluation process that will allow the Board to provide productive performance feedback to the Executive Director.

This consideration is part of a comprehensive third-party review of the Board’s governance charters that were first presented to the Governance Committee meeting on May 9, 2023, and then at the quarterly Board meeting on May 17-18.

The recommendations will be presented to the full Board at the December quarterly meeting for consideration. For additional information, see the Board of Trustees Meeting page.

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APFC Board of Trustees Governance Committee to Consider the Executive Director Review Process

In Board of Trustees by Juliette Alldredge

The Governance Committee of the APFC Board of Trustees will meet on November 29, 2023, to review and discuss recommendations to simplify the APFC Executive Director evaluation and review process. The resulting recommendations from the committee’s discussion will be presented to the full Board at the December quarterly meeting for consideration.

This consideration is part of a comprehensive third-party review of the Board’s governance charters that were first presented to the Governance Committee meeting on May 9, 2023, and then at the quarterly Board meeting on May 17-18. The purpose of the third-party review was to ensure the Board’s governance policies are consistent with best governance practices for an endowment fund of similar size and purpose to the Alaska Permanent Fund.

The Executive Director evaluation and review process is conducted at the end of each calendar year.

To access the meeting, use the following link:
https://apfc.webex.com/apfc/j.php?MTID=mad7ffb583df9fa84c1f134d448fe05ce

Webinar number (access code): 2630 576 8885
Webinar password: GovCom (468266 from phones and video systems)

For additional information, see the Board of Trustees Meeting page.

Board of Trustees Governance Committee Meeting

In Uncategorized by Jennifer Thorsteinson

The Alaska Permanent Fund Corporation Board of Trustees will hold a Governance Committee Meeting on November 29, 2023. The primary topic for the meeting is the proposed changes to the Governance charters that relate to the Executive Director evaluation process.

The public is invited to attend this meeting via Webinar or telephonically (please refer to the agenda). There will be an opportunity for public comment and participation at 11:00 a.m. when the meeting commences. If the public wishes to sign up for public comment, please indicate so when registering via WebEx. If you have any issues registering for public comment, please reach out to Jennifer Loesch (information in the agenda) at least one business day prior to the meeting.

November 29, 2023 APFC Board of Trustees Governance Committee Agenda

November 29, 2023 APFC Board of Trustees Governance Committee Packet_REVISED

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30-Foot Totem Poles Return to Goldbelt

In News by Juliette Alldredge

The 30-foot-tall totem pole outside the Michael J. Burns building came down today, following the two indoor poles that were already removed. Tlingit artists Ray Peck and Jim Marks carved the Legends and Beliefs, Creation of Killer Whale and Strongman totems, in addition to the fifteen bronze sculptures affixed to the outside of the building.

“We’re honored to have been the caretakers of the totem poles for the last several decades. It is bittersweet to watch the totems leave our care, but at the same time see the positive impact of their return to Goldbelt,” said APFC CEO Deven Mitchell.

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