PUBLIC EQUITIES

The Public Equities portfolio is the Alaska Permanent Fund's largest and most liquid asset class. It includes U.S. and international stocks traded on public markets, like the New York Stock Exchange (comprised of U.S., international and global stocks).

The portfolio is actively structured to perform well in a variety of market environments, including positively trending equity markets and weaker market environments. The components of this structure include asset allocation, external manager selection, and internal management of equities.

The Public Equities portfolio is the largest driver of growth for the Fund. Given its size and significance, this portfolio's performance significantly shapes the Fund's overall performance.

KEY PORTFOLIO FIGURES

$26.2 B

as of June 30, 2024

80

Countries Represented in Stock Holdings

32%

FY25 TARGET ASSET ALLOCATION

MANDATE

Strategy
APFC Public Equities allocation decisions are both strategic (long term) and tactical (intermediate term) and are based on long term expected returns, valuation, fundamentals, and macroeconomic trends. Asset allocation decisions are made across market segments such as:
Geographic - domestic vs. international
Sectors - cyclical vs. defensive
Size - large cap vs. small cap
Style - value vs. growth
Focus Area
We implement our asset allocation decisions predominantly through external fund managers across active, quasi passive strategies, and passive strategies. A small but increasing part of our allocation is also managed internally, currently, through exchange traded funds (ETFs).

Stock Holdings

Public Equity Holdings

PERFORMANCE

The performance of the total public equity portfolio over a market cycle shall be measured against the following objectives:

  1. Total returns commensurate with the level of total equity risk taken in the portfolio so as to fulfill the role of public equities in the Fund’s asset allocation policy; and 
  2. Risk-adjusted returns measured using standard industry metrics such as the Sharpe ratio or information ratio that are enhanced relative to the total public equity portfolio’s assigned benchmark.
  3. Total returns relative to the total returns of the assigned benchmark.

Performance reports for the portfolio can be found in the monthly performance reports and in the board meeting packets.