A Legacy of Stewardship for Generations

Our History

Ten years after Alaska achieved statehood, oil was discovered on the North Slope. Understanding that Alaska’s new oil wealth would not last forever, residents created the Alaska Permanent Fund in 1976. Four years later, the Alaska Legislature created the Alaska Permanent Fund Corporation to prudently invest and manage the Permanent Fund. APFC has grown the Permanent Fund into a sovereign wealth fund that provides more than half of the state’s unrestricted general fund revenues to support essential state services and programs, including the Permanent Fund Dividend.

The Origins and Foundations of the Fund

Establishing the Fund

In 1969, oil was discovered on the coast of Alaska on state land—a huge find. A year later, the state held the 1969 North Slope oil and gas lease sale, which brought in $900 million in revenue. While there was a significant amount of debate at the time as to whether some or all the money from the lease sale should be saved, ultimately, the proceeds were used to support infrastructure and social programs throughout the young state.

5 men sitting around a table with paperwork

Governor Hammond speaking with Legislators

People presenting oil and gas lease sales

1969 Alaska Oil and Gas Lease Sale

Construction of the Trans Alaska Pipeline System

Representative Clark Gruening, APFC Trustee 1995-2003

Speaker of the House, Representative Terry Gardiner

Alaska Confronts The Dilemma Of Being Rich

1976 election returns

In 1974, as construction of the Trans-Alaska Pipeline began, Alaskans looked toward the future and deliberated on how best to utilize the anticipated mineral royalties. Many of the state’s decision-makers supported allocating a portion of the expected revenues to a "permanent fund," which would be out of reach of day-to-day government spending and could generate income into perpetuity.

Alaska’s Constitution does not allow for dedicated funds, so to direct these oil revenues into a permanent fund, the Constitution had to be amended. Placing the Fund's founding language in the Constitution had the added benefit of helping protect it from being spent by the Legislature without a vote of the people. A Constitutional Amendment requires a majority vote of the people of Alaska, and one establishing the Permanent Fund was approved 75,588 to 38,518 votes in 1976.

Alaska Permanent Fund

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.

Creating Alaska’s Investment Manager

Establishing the Corporation

On February 28, 1977, the Permanent Fund received its first deposit of dedicated oil revenues totaling $734,000. Investments consisted almost entirely of bonds, while the Legislature had a four-year public discussion regarding whether the Permanent Fund should be managed as an investment fund or an economic development bank.

Governor Jay Hammond signed a bill in 1980 creating the Alaska Permanent Fund Corporation (APFC) for the purpose of managing investments. One of the goals of creating the Corporation was to protect the fund from political influence by establishing a six-member Board of Trustees to serve as fiduciaries.

APFC’s inaugural Board of Trustees included Elmer Rasmuson as Chair, Thomas Williams as Vice-Chair, Wilson Condon, Peter McDowell, George Rogers, and Robert Ward as members.

Also, in 1980, the Legislature approved the Permanent Fund Dividend program. Two years later, the first dividend check of $1,000 was distributed.

Key Moments in Our History

Timeline & Milestones

1974	Construction of the 800-mile Trans-Alaska Pipeline begins and lasts 39 months. The costs total $8 billion, including the Marine Terminal in Valdez.
1976	Alaska voters, by a margin of 75,588 to 38,518, approve a Constitutional Amendment establishing the Permanent Fund.
1977	On February 28, the Permanent Fund received its first deposit of dedicated oil revenues totaling $734,000. The Legislature then began four years of public discussions regarding whether the Permanent Fund should be managed as an investment fund or an economic development bank.

1980	The Alaska Legislature passes Senate Bill 161, creating the Alaska Permanent Fund Corporation (APFC) to manage the investments of the Permanent Fund, and places a list of allowed investments into state law. APFC is officially established as a state entity, and the Board of Trustees is entrusted with oversight of the Corporation and the fiduciary responsibilities of Fund management. $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 is ruled unconstitutional by the United States Supreme Court because individual dividend payments varied based on length of residency.
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.
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. APFC is functioning as a strong, viable, and independent organization. For the first time, the Trustees are establishing long-term goals for rates of return and are formally developing an asset allocation policy designed to achieve their goals.
1987	Despite the stock market crash, in October 1987, the Fund’s performance ranks in the top 9% of all public funds in the United States. Total annual throughput of oil in the Trans-Alaska Pipeline peaks at 2 million barrels per day.
1988	APFC kicks off its internship program as a way for the Fund to help young Alaskans gain entry into the field of finance and investing.
1989	APFC increases to 18 employees. The Alaska Legislature grants the Trustees authority to invest in non-U.S. securities. The 7 billionth barrel of oil passes through the Trans-Alaska Pipeline.

1990	APFC celebrated its 10th anniversary with a video about the Fund and a discussion with its early leaders. The Fund begins to invest in stock and bond markets outside the United States. The Fund reached $10 billion.
1991	On January 1, the 8 billionth barrel of oil arrives in Valdez. From 1991 through 2000, the Permanent Fund earned at least $1 billion in net income each year.
1993	The Fund reached $15 billion.
1994–1995	APFC begins managing another fund: the Alaska Mental Health Trust. By 1995, the Corporation had a sizeable staff of about 30. As the Corporation continues to mature, greater emphasis is placed on insulating the Fund's management from political influence while maintaining APFC's ability to remain responsive to changes in state policy and accountable to Alaskans.
1996	The Fund celebrated its 20th anniversary The Fund reached $20 billion.
1997	Surging stock markets drive Fund performance to all-time levels as the Fund grows to more than $22 billion. In a special forum, Alaskans around the state discuss the Fund's future. The Legislature appropriates $803 million to the Fund's principal.
1998	For the first time ever, Fund earnings exceeded state oil revenues. The Fund reached $25 billion.
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.

10 Year Anniversary Video

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%.
2001	The Fund celebrates its 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. The Fund reached $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 brought the The Fund’s reached $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.
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 receives an international award for innovation.

2010	APFC celebrated its 30th anniversary and created this video highlighting the history of the Fund and the Corporation.
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 assets reached $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. FY16 is another volatile year, with continued global market corrections and declines in oil prices. However, APFC and the Fund are able to weather the storms with a diversified asset allocation, allowing significant losses in stocks to be offset set by gains in other asset classes. Oil prices eventually enter a period of relative stability, and the bond market outperforms expectations. The Fund ends FY16 with a value of just under $53 billion.
2017	The Fund reached over $60 billion in value. The Fund's growth is attributed to APFC staff generating higher returns through active asset allocation and portfolio management. APFC is 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. APFC’s Trustees, executive leadership, and staff implement a 5-year strategic plan, that is forward thinking, adaptable, consistent with APFC’s values, and reflective of stakeholders.
2018–2019	For the first time in state history, the Legislature adopts a mechanism whereby Fund earnings are used not just to pay dividends, but to also contribute to state government under a percent of market value (POMV) methodology. Under this rules-based framework, the state operating budget for FY19 includes a $2.7 billion POMV draw from the Fund for the payment of dividends and to support government services. The POMV draw is based on a percentage of the average market value of the Fund for the first five of the preceding six fiscal years. The draw is subject to appropriation and is set in statute at 5.25% for Fiscal Years 2019-2021 and 5.0% from Fiscal Year 2022 onward. In recognition of this transition period, when state revenues from oil development were unlikely to fully fund state revenue needs in the future, as a pivotal time for the Fund and Alaska, the Board of Trustees pass Resolution No. 18-04. This resolution affirms the importance of formulaic management of transfers into and out of the Fund to ensure its sustainability and long-term growth. In addition to the POMV structure, other elements are essential in achieving a balance between current demands on the Fund and the protection of intergenerational value: adherence, sustainability, inflation proofing, and real growth. The Alaska Permanent Fund continues to grow in global stature and emerges as an integral part of our state’s fiscal future. In FY18, the Fund’s investments gain 10.74% and the Fund ends the year with assets under management totaling $64,894,345,000. The quality and diversity of the portfolio’s investment returns across all asset classes, and the Fund benefits from having a board-authorized investment structure that allowed APFC to identify and respond to targeted opportunities and risks within a shifting global financial landscape. In FY19, APFC accomplishes significant growth with the support of Alaskans, welcoming 17 new staff and building up internal investment and management capabilities. The investment in staff, systems, and the remodeling of office space to accommodate today’s workflow requirements ensures Alaska has a platform to deliver for the next 40 years the results Alaskans have come to expect.

30 Year Anniversary Video

2020	The Fund becomes Alaska’s largest source of unrestricted general fund revenues for the State's budget given the decline in oil prices. The POMV draw from the ERA represents 42% of total general fund revenues in the FY19 budget, 47% in the FY20 budget, and more than 50% in the FY21 budget. APFC Board of Trustees release the Trustees’ Paper Volume 9: The Role of Sovereign Wealth Funds in Saving, Stabilization, and Generating Income, sharing best practices of peer funds from Norway to Saudi Arabia, and closer to home from New Mexico to North Dakota. The paper examines frameworks that have resulted in peers flourishing and floundering, and thoughtfully analyzes how Alaska might learn from those experiences.
2021	The Fund Crossed Both the $70 Billion and $80 Billion Milestones In a single fiscal year, the Fund surged more than $16.6 billion, closing fiscal year 2021 at $81.9 billion. The Fund had a record return of 29.73% for the fiscal year. With a 5% POMV draw, the Permanent Fund continues to be Alaska’s primary source of unrestricted general fund revenues, providing $3.1 billion to fund essential state services. APFC celebrates the 45th anniversary of the establishment of the Alaska Permanent Fund.
2024	Trustees’ Paper Volume 10: A Rules-Based Permanent Endowment Model for Alaska is released by the Board of Trustees. The paper includes 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 is intended to anchor the history and policy direction for the Alaska Permanent Fund and the Corporation. As provided in the paper, consideration of structure and distribution methodology is essential to ensure the Permanent Fund's enduring success in respecting the sacrifices of the past, protecting the intergenerational benefits of the Fund for all Alaskans, and in providing revenues to support state services and the dividend for current generations. A Single-Fund Endowment with a limited draw is permanently inflation-proofed and ensures the Fund’s real value is maintained over time while supporting its intended beneficiaries.
2025	2025 was a successful year for APFC as it navigated global markets with a focus on long-term value for Alaska. At the end of FY25, the Alaska Permanent Fund reached an all-time high of $85.1 billion and had generated more than $93.7 billion in total realized earnings since inception, which have been used to support inflation proofing, the PFD, and government services. APFC celebrated its fifth consecutive year recognized as a Best Place to Work by Pensions & Investments, while welcoming seven new employees who share our values of integrity, stewardship, and passion. Looking toward the Fund’s 50th year in 2026, we carry forward the foresight of Alaskans who established the Fund and the responsibility to strengthen and protect its value for the next fifty years.
2026	The Alaska Permanent Fund marks its 50th anniversary, celebrating generations of stewardship of Alaska’s most treasured resource. Learn more about this milestone at the 50th Anniversary page.

What Alaskans Created for the Long-Term

How Alaskans Created the Fund

Ten years after Alaska achieved statehood, oil was discovered on the North Slope, which led to Alaskans voting to create a Permanent Fund to invest oil proceeds for future generations. The first deposit was $734,000. After 50 years of wise management, APFC has grown the Permanent Fund to more than $89.3 billion as of April 30, 2026.

Five Decades of Stewardship

50 Years of the Alaska Permanent Fund

Explore the milestones, history, and legacy of the Alaska Permanent Fund’s first 50 years and its continued importance to Alaska’s future.

50 YEARS OF THE FUND

Our History

Establishing the Fund

Alaska Constitution Article IX, Section 15

Establishing the Corporation

Timeline & Milestones

1970 - 1979

1974

1976

1977

1980-1989

1990 - 1999

2000 - 2009

2010 - 2019

2020 - Present

How Alaskans Created the Fund

50 Years of the Alaska Permanent Fund