Trustees Review First Quarter Performance and Consider Capital Market Insights

In Uncategorized by Paulyn

Juneau – The Board of Trustees held its quarterly meeting via webinar on December 9-10, 2020 to consider the Alaska Permanent Fund’s first-quarter investment performance and associated capital markets insights. …

Marcus Frampton, Chief Investment Officer, recognizes that “the expected return environment for institutional portfolios today are challenged by high stock valuations and low-interest rates that are prevailing.  Staff’s two most notable strategies for achieving the Fund’s stakeholders’ return expectations are a material overweight to value stocks over growth stocks and the continued growth of our private equity program.  As we reviewed at this Board meeting, the ten-year returns on APFC’s private equity strategy have been outstanding, and in the fourth quarter of the calendar year 2020, we started seeing markets turn in favor of value stocks.” …

Angela Rodell, Chief Executive Officer, remarked that “the presentations highlighted the challenges that APFC faces in our dual role of protecting the Principal of the Fund and in generating revenue to support draws for state services. Currently, the stock market reflects strong growth, but the long-term outlook is tempered at best. Energy and tourism, two sectors Alaska heavily relies on, are both in transition, indicating the state’s continued reliance on the Fund in the coming year.” …

In conclusion, Chair Moran notes that “throughout this pandemic, the APFC team and our global partners continue to deliver results and returns that benefit the portfolio, and thus benefit Alaskans.” He encourages Alaskans to learn more about the Permanent Fund’s history and APFC’s investment management role in the recently released publication ‘An Alaskan’s Guide the Permanent Fund.’

The next meeting of the Board of Trustees will be held in Juneau, Alaska, on February 17-18, 2021.

 

Full news release: 202012_APFC BOT Meeting Q1