FUND NEWS                               May 31, 2007

APFC Board adds infrastructure, approves stock manager search

MAY 31 - The APFC Board authorized a new allocation to infrastructure investments during their regular meeting in Anchorage on Thursday."The Board has been studying infrastructure investments over the last year, and they have some very appealing characteristics for our portfolio," said Board Chair, Carl Brady. "They have similarities to real estate, bonds and private equity, and will provide another asset class to further diversify the Fund. We`ll determine how to implement this allocation in the coming months."

The Alaska Permanent Fund Corporation Board of Trustees authorized a new allocation to infrastructure investments during their regular meeting in Anchorage on Thursday.

"The Board has been studying infrastructure investments over the last year, and they have some very appealing characteristics for our portfolio," said Board Chair Carl Brady. "They have similarities to real estate, bonds and private equity, and will provide another asset class to further diversify the Fund. We`ll determine how to implement this allocation in the coming months."

The Board also authorized a search for stock managers to potentially add to the small-cap manager pool. Two years ago the Board created the pool when it replaced a single manager with a $500 million mandate with a stable of managers with much smaller mandates in an effort to improve returns for the asset class. There are currently eleven managers in the pool, and a recent review suggesting adding a few more managers, especially those with a growth orientation would enhance the program.

Other items covered by the Board during their two-day meeting on Wednesday and Thursday included:

• A meeting of the Audit committee on Wednesday afternoon to review KPMG’s plans for conducting the Fiscal 2007 audit.
• APFC fixed income staff’s review of the Fund’s $8 billion internally-managed domestic fixed income portfolio.
• Pathway Capital Management’s presentation of their Fiscal 2008 plan for the Permanent Fund’s private equity portfolio.
• Martingale Asset Management’s review of the Permanent Fund’s new enhanced alpha stock portfolio.
• Increasing the Permanent Fund’s allocation to emerging market stocks from 3% to 4%.

The Board’s next scheduled meeting will be in Anchorage in August. An agenda will be available at www.apfc.org.