Alaska Permanent Fund Increases 2.1% in First Fiscal 2019 Quarter

Private equity, infrastructure investments bring home the bacon while real estate takes a hit.

The $63.9 billion Alaska Permanent Fund gained 2.13% in its September-ending quarter, the sovereign wealth fund announced.

The fund beat its passive index benchmark of 2.06%, as well as the 1.4% objective of its board of trustees. It lagged against the 2.66% metric tracking its asset allocation.

The Alaska fund has, however, outperformed all these benchmarks in the three- and five-year period, where it returned 10.22% and 8.34%, respectively.

The top-performing asset class was private equity/special opportunities, which returned 4.82%. Next was infrastructure/private credit/income opportunities at 3.96%.

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Public equity, which returned 3.18%, saw gains in both domestic and global stocks (5.42% and 4.15% increases in their portfolio sectors), but dragged down by international equities (which fell 0.63%).

The portfolio was rounded out by absolute return (0.85%), fixed income plus (0.65%), asset allocation strategies (0.48%), and real estate, which was the only red asset, at -2.28%.

Angela Rodell, APFC’s chief executive officer, addressed that “diversification and meaningful allocations to private market assets” keep paying off.  

“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 added. 

The Alaska Permanent Fund’s asset mix at the end of September was 42.6% public equities, 22.5% fixed income plus, 11.9% private equity/special opportunities, 7.2% infrastructure/private credit/income opportunities, 6.1% real estate, 5% asset allocation strategies, and 4.7% absolute return.

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