FUND NEWS                               Apr 29, 2005

Board sets 2005 asset allocation targets

APRIL 29 – The APFC Board set new asset allocation targets and updated the equities investment policy at its April 28-29 meeting. Trustees also reviewed the management of the fixed income portfolio managed by the APFC staff and for the global equities and fixed income portfolios managed by UBS Global Asset Management. The Trustees were also briefed on hard asset investments.

APRIL 29 – The Alaska Permanent Fund Corporation Board set new asset allocation targets and updated the equities investment policy at its April 28-29 meeting.

Last year the Trustees made a number of changes to the Fund’s target asset allocations, including the addition of private equity and absolute return investments. In light of these changes, the Board chose to maintain the asset allocations for the upcoming year while continuing to seek out alternative asset types and investment approaches.

“After reviewing Callan Associates capital market outlook and asset class projections for the next five years, I see negligible changes in the expectations for returns, risks, correlations and inflation compared to this time last year,” said Chief Investment Officer Rick Shafer during his presentation to the Board. “Our investment goals have also remained the same, and as a result, I don’t see any significant reason to change the Fund’s asset allocation at this time.”

Shafer went on to recommend that the Board approve increasing the flexibility bands around each target by one percent. This allows the staff more flexibility to ride out volatile markets before being forced to rebalance the Fund. The Board adopted both recommendations.

Updates to the equities investment resolution occur annually, with staff recommending changes to clarify policies and respond to evolving markets, including modestly increasing manager flexibility. The changes to the prior resolution include recognizing the NASDAQ as an authorized exchange, allowing exchange traded funds (ETFs) in authorized accounts and increasing investment manager flexibility to vote proxies in the best financial interest of the Fund.

In addition to taking action on the above items, the Trustees reviewed the management of the following portfolios: the fixed income portfolio managed by the APFC staff, and the global equities and fixed income portfolios managed by UBS Global Asset Management. The Trustees were also briefed on hard asset investments.