FUND NEWS                               Sep 23, 2008

APFC Board reviews Fund performance, re-elects Steve Frank Chair

Sept 23 - The Alaska Permanent Fund Corporation Board of Trustees reviewed the Fund’s performance for fiscal year 2008 and listened to financial experts share their thoughts on the recent market turmoil at the Corporation’s annual meeting in Juneau September 22 and 23.

“We are confident that we’ve built a well diversified portfolio that serves our long-term goals,” said Board Chair Steve Frank. “The Fund saw significant daily gains and losses over the last week, but we don’t react based on short-term changes in the Fund. We’re focused on long-term performance.”

On Monday the Board reviewed and accepted the Permanent Fund’s audit by KPMG and reviewed the Fund’s performance for the fiscal year, presented by Michael O’Leary of Callan Associates. For the fiscal year, the Fund was down -3.6% with the greatest losses in the stock portfolios. Bonds were the bright spot, with U.S. bonds returning 6.1% and non-U.S. bonds returning 10.9%.

Other action items included re-electing Steve Frank as Chair and Bill Moran as Vice-Chair of the Board of Trustees, and approving the draft Fiscal Year 2010 budget for inclusion in the State’s operating budget.

Over the two-day meeting, the Board was briefed on the following items:

• Management of the Fund’s alternative assets portfolios from the point of view of the APFC staff, external mangers and the Fund’s custodial bank, Bank of New York Mellon

• Updates to the model used by Callan Associates for fund revenue projections

• The APFC’s securities lending program, which is managed by Bank of New York Mellon

The next scheduled board meeting is on December 2 & 3 in Anchorage.