ANCHORAGE, Alaska (AP) — Returns for the Alaska Permanent Fund were less than desirable for the first quarter of the 2019 fiscal year, ending the period with a balance of more than $63.9 billion, officials said.
Alaska Permanent Fund Corp. managers generated a 2.13 percent return, with investments producing $846 million in statutory net income, the Alaska Journal of Commerce reported Tuesday.
CEO Angela Rodell said the return highlights the significance of having a well-diversified investment portfolio and “meaningful allocations to private market assets.”
“As the market becomes increasingly volatile, it is more important than ever to remember we invest with a 10-, 25-, 50-year or longer time horizon,” Rodell said. “Our APFC team continues to be focused on building real financial wealth and resources for the State of Alaska.”
Most Read Business Stories
- Amazon-owned Whole Foods cuts healthcare benefits for part-time employees
- The market's chilled out, but Seattle home prices still too hot for many first-time buyers
- 'I was stupid': Huffman gets 14 days in college scam VIEW
- Amazon workers bring parents to work
- Air Force finds another problem with Boeing's KC-46 tanker
The fund’s balance was $931 million less than the nearly $64.9 billion at the start of the quarter, which ended Sept. 30. That loss was largely because of the money appropriated for the first time from the Earnings Reserve Account to fund state government operations.
The state Legislature had approved a 5.25 percent of market value draw, about $2.7 billion, from the fund in May. About $1 billion paid the annual dividends, and the rest will be directed for government services.
Statutory net income is transferred into the fund’s Earnings Reserve Account, which can be appropriated by the state for fund dividends, government expenses and preventing inflation in the fund principal.
The Earnings Reserve Account had about $17 billion as of September.
Information from: (Anchorage) Alaska Journal of Commerce, http://www.alaskajournal.com