FUND NEWS                               May 25, 2016

APFC Board approves private market allocations

May 25 – The Alaska Permanent Fund Board of Trustees reviewed the Fund’s recent investment performance for all of its portfolios, and approved private market allocations for the upcoming year at a regular board meeting on May 24 and 25 in Anchorage.

“The contributions from the Fund’s private market investments remain positive, and we believe they will become increasingly important in providing both growth and income in this low interest-rate environment,” said Board Chair Bill Moran. “It makes sense to continue to build the private asset allocations.”

In all areas, the following allocations are dependent on staff or outside managers finding suitable investments, and may not be fully committed at the end of the fiscal year. The allocations for fiscal year 2017 are:

  • Up to $350 million to infrastructure and other real assets, shared between co-investments and infrastructure funds and allocated during the year based on the presented opportunities. An additional $200 million may be added to the total infrastructure allocation if warranted.
  • Up to $350 million to private credit.
  • $900 million in total to private equity. This will be split between co-investments and private equity funds, with co-investments limited to $225 million. An additional $200 million may be added to the total private equity allocation if warranted.
  • Up to $350 million to structured private equity. An additional $200 million may be added to the allocation if warranted.
  • Up to $800 million in opportunistic investments.

In addition, the Board was provided with a panel discussion on hedge funds, and a discussion of exposure to and mitigation of petroleum risk.

The next regular meeting is scheduled for September 27 and 28 at the Corporation’s offices in Juneau.