FUND NEWS                               Aug 25, 2006

Board discusses global investments, real estate, absolute return

AUGUST 25 - At its August 23-24 meeting, the Alaska Permanent Fund Corporation Board received briefings on global investing, considered the addition of one or more absolute return managers and also considered changes to the real estate investment program. A meeting summary follows.

The Alaska Permanent Fund Corporation Board of Trustees held a regular two day meeting in Anchorage on Wednesday, August 23, and Thursday, August 24.

As part of the two-day agenda, the Board was briefed on developments in global investing by Callan Associates, Alliance Bernstein, Mellon Capital Management and Capital Guardian Trust Company. This included a review of the new approach to global investing, that looks for opportunities where they occur, rather than creating allocations based on geographic boundaries. Currently the Fund has two global stock portfolios, managed by Lazard Freres and UBS Asset Management.

The Board also considered two other items which were tabled for further discussion at the September meeting:
• The addition of one or more absolute return managers. Staff has conducted due diligence on the candidates currently under consideration and will provide additional information at the September meeting.
• Changes to the three components of the real estate investment program: policy resolution, investment strategy and tactical plan.

The Board’s next regular meeting is the annual meeting September 20 & 21 in Anchorage.