HISTORICAL TIMELINE

1969 | The Prudhoe Bay Oil and Gas lease sale brings in $900 million in revenues, a significant windfall for Alaska. Some suggest saving some or all of the $900 million, however it is spent over the next few years on capital projects and programs, such as the Alaska Student Loan program and the Alaska Longevity Bonus program.

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Prudhoe Bay Oil and Gas Lease Sale

1974 | Construction of the trans-Alaska pipeline begins. Construction lasts 39 months, costs $8 billion including the Marine Terminal in Valdez.

1976 | In November, Alaska voters, by a margin of 75,588 to 38,518, approve Constitutional Amendment establishing the Permanent Fund.

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Hensley Adams Legislative Debate

1977 | On February 28, the Permanent Fund receives its first deposit of dedicated oil revenues totaling $734,000. At first the Fund is invested entirely in bonds. The Legislature begins four years of public discussions regarding whether the Permanent Fund should be managed as an investment fund or as an economic development bank.


1980 | The Alaska Legislature creates the Alaska Permanent Fund Corporation, to manage the investments of the Permanent Fund, and places a list of allowed investments into state law. In the photo to the right, Governor Jay Hammond is shown signing the bill creating the APFC. $900 million in surplus oil revenues is deposited in the Permanent Fund by special appropriation. The Legislature also approves the first Permanent Fund Dividend program. This program was ruled unconstitutional by the United States Supreme Court because individual dividend payments varied based on length of residency.

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Governor Hammond signs the bill creating APFC.

1982 | The Alaska Legislature, at the request of the Board of Trustees, enacts inflation proofing to protect the Fund’s purchasing power. The first Permanent Fund Dividend check of $1,000 is distributed. The Legislature pays this first dividend, not with Fund income, but with surplus oil revenues.

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1982 PFD Check

1983 | Following changes to the statutory investment list, the Fund makes its first investment in the stock market, and later that year, in directly held real estate.

1987 | Despite the stock market crash in October 1987, the Fund’s performance ranks in the top 9% of all public funds in the U.S. Total annual throughput of oil in the trans-Alaska pipeline peaks at 2 million barrels per day.

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New York Stock Exchange

1990 | After the Legislature expands the statutory investment list, the Fund begins to invest in stock and bond markets outside the United States.

1993 | Fund assets reach $15 billion.

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Newspaper clipping — Record year for Permanent Fund

1998 | For the first time ever, Fund earnings exceed state oil revenues as the Fund reaches the $25 billion mark..

1999 | The Legislature increases the Fund’s investment flexibility to allow up to 5% of the Fund’s value to be invested in alternative investments..


2000 | The Trustees remain committed to a long-term, diverse investment strategy as the stock market begins a sharp decline that will last for three years. Trustees further diversify the Fund’s investment portfolio and increase the equity allocation to 53 percent.

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S&P Drop

2001 | 25th Anniversary The Board of Trustees formally endorses a constitutional amendment to change Fund payouts to a percent of the Fund’s total value (POMV). The first of a series of resolutions that would place this proposed change on a general election ballot are introduced in the Legislature at the Board’s request.

2002 | The Bear market that began in 2000 leads to the Fund’s first negative return in 2002. These market conditions carry through 2003.

2004 | APFC invests in two new asset classes: absolute return strategy funds and private equity. The Legislature changes state law to require cause before any of the four public members of the Board may be removed, furthering the efforts to keep APFC independent.

2005 | The Legislature makes a significant change in how Fund investments are determined, by removing the allowed investment list from state law so that Trustees make investment decisions solely under the guidelines of the prudent investor rule. Fund assets reach $30 billion.

2006 | The Fund reaches $35 billion in value, an increase of $5 billion from the prior year.

2007 | The Trustees add a new asset class, infrastructure, to the Fund ’s investments. Several years of strong returns carry the Fund’s value to $40 billion.

2008 | A correction that began in late 2007 causes markets to drop dramatically and makes 2008 one of the five worst years in the 218-year history of the U.S. stock market.

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Stock Market Crash of 2008

2009 | The Board reorganizes the Fund’s investments into risk-based groups, where investments are grouped by the market condition that those assets are intended to address. This better fits the Board’s goal of building a portfolio that will provide a more stable return under a variety of conditions. Based on this and other innovative risk management activities, APFC is awarded the aiCIO Industry Innovation Award in the Sovereign Wealth Funds category the following year.


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Board working together

2012-2013 | Continuing the evolution of the Fund’s investments, the Board works to take advantage of APFC’s growing capabilities. Programs are created to bring international bond and infrastructure co-investments in house.

2014 | The Fund reaches a value of $50 billion.

2015 | The Board amends two sections of APFC’s Investment Policy. One amendment allows staff to seek out any investment that has similar risk and return characteristics as infrastructure, rather than be limited to a rigid focus on traditional infrastructure sectors. The second amendment groups the Fund’s absolute return and real return investments under a single program. Specific amendments to the policy authorize the Fund to be placed in a smaller number of more concentrated investments to help lower investment costs and prevent overdiversification.

2016 | The Fund celebrates its 40th anniversary, created in 1976.

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2017 | The Fund reaches a value of over $60 billion. APFC was named a finalist for “Sovereign Wealth Fund of the Year” in Institutional Investor’s 15th Annual Hedge Fund Industry Awards. This serves as recognition of APFC staff’s stewardship of the Fund and commitment to being world-class investors on a global stage.