Start of FY24 Financial Statements

In Uncategorized by Paulyn

The financial statements for the beginning of the fiscal year 2024 (FY24) for the Alaska Permanent Fund are now available. As of July 31, 2023, the Alaska Permanent Fund has an unaudited total value of $75.7 billion. The value of the permanent deposits in the Principal is $56.5 billion with $12.4 billion of associated unrealized gains. The Earnings Reserve Account (ERA) has $3.7 billion committed to the FY25 annual draw to support state revenues, $1.4 billion to inflation-proof the Principal, $0.5 billion of uncommitted realized earnings and $1.2 billion of unrealized gains associated with current investments.

While positive performance returns were achieved in FY23 despite a high inflationary environment and relatively flat markets, the amount of income generated through investment activity has decreased compared to previous years. As a result, the spendable portion of the Permanent Fund is being used faster than it is being replenished.

While this is reflected in the start of FY24 financial statements, it is important to note the current fiscal year’s (FY24) percent of market value transfer for the State of Alaska is already accounted for. Additionally, there is sufficient money in the earnings reserve account to make next year’s (FY25) annual distribution to the State and support the FY24 appropriated inflation-proofing payment to the Principal, which are reflected as commitments on the financials.

To better inform Alaskans on the sustainability of the Fund to provide for generations, APFC’s Board of Trustees will be working on Trustee Paper #10. As contemplated, the paper will include a history of the Fund, an overview of the Fund’s structure, insights into the durability issues under the current construct, and potential solutions to bring the Fund in line with modern endowment practices. As with former Trustee Papers, this study will anchor the history and policy direction for the Alaska Permanent Fund and the Corporation.

https://apfc.org/financial-and-performance-reports