FUND NEWS                               Dec 04, 2008

APFC Board hires new private equity manager

DEC 4 - The Alaska Permanent Fund Corporation Board of Trustees hired HarborVest Partners, LLC to manage a new private equity portfolio during a regular meeting on Tuesday and Wednesday.

The Alaska Permanent Fund Corporation Board of Trustees hired HarborVest Partners, LLC to manage a new private equity portfolio during a regular meeting on Tuesday and Wednesday. "The Board is always looking at ways to make the Permanent Fund`s investments more diverse,” said Board Chair Steve Frank. “Bringing in new managers who can provide a different approach to the market adds to that diversity. Because of their extensive experience in global private equity, we think HarborVest will be an outstanding addition to our current portfolio."

HarborVest, based in Boston, MA, will manage a separate account for the Permanent Fund with a discretionary broadly diversified global mandate. The firm is the second private equity gatekeeper that the Board has hired since it began private equity investments in 2004. Pathway Capital Management currently manages two private equity portfolios for the Fund.

In a separate action, the Board approved a minimum $200 million commitment to HarborVest and Pathway for each of the next five years. The Board also updated the private equity investment policy resolution, including clarifying the types of ownership structures the Fund may use and increasing the maximum number of non-U.S. partnerships to 40% of a portfolio.

The Board also discussed rebalancing, the process of bringing a portfolio back to its target allocations. In a unanimous decision, the Board moved to clarify the authority given to the Chief Executive Officer and Chief Investment Officer to take any steps necessary to move the Fund`s assets back toward the target allocation. In addition, the CEO was directed to provide immediate notification to the Board if the Fund`s asset allocation was outside of target bands at the end of any month.

Other items covered by the Board included:

• Amending the real estate strategic plan regarding the public real estate allocation to a 10% target +/- 10%.

• Renewing the board advisor contract for Robert Maynard.

• A review via video conference of current market conditions by Mohamed El-Erian, Co-CEO and Co-CIO of PIMCO, and author of When Markets Collide.

• A review of current market conditions with John Paulson (via video conference) and Jim Wong, of the Paulson Company, and Chris Heasman of Lazard Asset Management.

• A review of the Permanent Fund`s first quarter performance by Michael O`Leary, of the Board`s general consultant Callan Associates.