FUND NEWS                               Sep 29, 2016

APFC Board Approves Strategic 5 Year Plan and Investment Policy Updates

SEP 29 – The Alaska Permanent Fund Corporation Board of Trustees considered and approved APFC’s 2017-2021 Strategic Plan and 5-year Investment Management Plan. This process ensures that APFC plans, in a deliberate and systematic way, for the future needs of the organization; and achieves consensus among the Board and staff on how those needs and priorities are going to be met.

Angela Rodell, CEO, noted that throughout the strategic planning process "agreement amongst the Board and the staff was high in affirming that APFC should increasingly manage investments in-house, use its standing as a sovereign wealth fund to access partnerships both international and domestic, be prepared to take on additional responsibilities in case of government mandate, and encourage staff retention."

APFC’s 5 year strategic plan sets forth the -

Mission:

To manage and invest the assets of the permanent fund and other funds designated by law

Vision:

To deliver sustained, compelling investment returns as the United States’ leading sovereign endowment manager, benefitting all current and future generations of Alaskans.

Strategic Priorities:

Four strategic priorities to be pursued over the next five years: (i) gain greater control over resource allocations; (ii) optimize APFC’s operational processes and use of financial networks and resources; (iii) develop best-in-class investment management capabilities and partnerships; and (iv) enhance talent and staff across APFC. Each priority has measurable goals, objectives and strategies, to ensure there are clear measures of success and accountability.

Investment Policy:

Defined 6 asset classes categorized by the following Investment Objectives and Liquidity characteristics:

  • Tradeable Growth – (1) Public Equities
  • Tradeable Income – (2) Bonds, Real Estate Investment Trusts, Infrastructure Securities
  • Illiquid Growth – (3) Private Equity & Special Growth, (4) Absolute Return Funds
  • Illiquid Income – (5) Real Estate, (6) Infrastructure & Special Income

Target allocation ranges and return criteria were established for each of these asset classes. Investments into each of the six asset classes is led by a dedicated investment team which presented their strategy for achieving best-in-class investment performance over the coming 5-years.

In addition to the approval of the strategic plan and investment policy, the Board took actions to:

  • Re-elect Trustee Bill Moran to Chair and Trustee Carl Brady to Vice-Chair of the APFC Board of Trustees.
  • Approve the acquisition of Bromley Retail Shopping Center in the UK.
  • Approve changes to the Personnel Management Plan, including new salary bands.
  • Review and approve KPMG’s results of the annual audit for fiscal year 2016.
  • Release the 2016 Annual Report that can now be viewed at apfc.org.