RENEWABLE FINANCIAL RESOURCE
THE PERMANENT FUND
The Alaska Permanent Fund Corporation (APFC) was created to manage the assets of the Alaska Permanent Fund.
The creation of the Alaska Permanent Fund (Fund) is a remarkable achievement in Alaska’s history, one that reflects foresight and commitment to the well-being and benefit of generations of Alaskans. The Fund holds a distinct place in the culture and economy of Alaska, both as a renewable source of revenue and as a symbol of long-term prosperity. In a state with primarily non-renewable resources, the Fund generates a renewable revenue stream for Alaska.
The Fund was established by Alaskans in an historic 1976 vote that amended the Constitution of the State of Alaska to include the following language - Alaska Constitution Article IX, Section 15
At least twenty-five percent of all mineral lease rentals, royalties, royalty sale proceeds, federal mineral revenue sharing payments and bonuses received by the State shall be placed in a permanent fund, the principal of which shall be used only for those income-producing investments specifically designated by law as eligible for permanent fund investments. All income from the permanent fund shall be deposited in the general fund unless otherwise provided by law.
The Constitutional amendment protects the fund deposits by dividing the Fund into two parts: the Principal (non-spendable) and the Earnings Reserve Account (spendable), which are commingled and invested under the same asset allocation.