FUND NEWS                               Jan 15, 2009

Board hires State Street for passive global mandate

JAN 14 - The Alaska Permanent Fund Corporation Board of Trustees hired State Street Global Asset Managers for a $700 million passive global mandate on January 14. The mandate was previously managed by UBS Global Managers.

During the teleconferenced meeting, the Board also took the following action:

• Amended the APFC’s equity investments resolution to include the Morgan Stanley Capital World Index as the benchmark for global passive managers.

• Transferred the distressed debt portfolio managed by Crestline Investors, Inc. from domestic fixed income to the absolute return strategies asset class. The Trustees determined that the portfolio’s characteristics made it more naturally fit in the alternative assets portfolio.

• Changed the short-term interest rate proxy for CDs purchased through APFC’s Alaska CD program from U.S. Treasury Bills to the short-term rate published by the Federal Home Loan Bank of Seattle. This ensures that the Permanent Fund is receiving fair compensation for its investment, while providing liquidity to the Alaskan economy through the state’s banking system.

The next Board of Trustees meeting is scheduled for February 18 & 19 in Juneau.