FUND NEWS                               Feb 28, 2008

APFC Board releases new Trustee paper, updates Alaska CD program

FEBRUARY 28 - The Permanent Fund Board approved changes to the Alaska CD program at a meeting held on February 27 and 28. Michael O`Leary of Callan Associate, the Board`s general consultant, provided an annual review of recent market performance, expected economic trends and considerations for the Fund`s asset allocation. John Gunn, CEO of Dodge and Cox, also gave the Board his firm`s thoughts on current market conditions and changes in the economic landscape.

The Alaska Permanent Fund Corporation Board of Trustees reviewed capital market performance, approved changes to the Alaska CD program and released "Trustee Paper Volume 8: Wealth Management," as part of a regular meeting on February 27 and 28.

"We are often asked if there are other funds that are similar to the Permanent Fund," said Board Chair Steve Frank. "And with the recent interest in sovereign wealth funds, this seemed like an opportune time to revisit this topic. We`ve pulled together information on wealth funds from all over the world to help highlight both their similarities and their differences."

Trustee Paper Volume 2, which was issued in 1988 and also covered wealth funds, and the new paper follows a similar format, including a comparison between the Alaska Permanent Fund and the Alberta Heritage Fund, reproduced with the permission of the Canada West Foundation. The second half of the paper is an overview of sovereign and permanent funds in the U.S. and abroad. Copies are available at the APFC offices or via www.APFC.org.

Michael O`Leary of Callan Associates, the Board`s general consultant, provided an annual review of recent market performance, expected economic trends and considerations for the Permanent Fund`s asset allocation. This information is used as the Board reviews the Fund`s asset allocation in the spring of each year. John Gunn, CEO of Dodge and Cox, also gave the Board his firm`s thoughts on current market conditions and changes in the economic landscape.

The Alaska Certificate of Deposit program provides in-state capital by allowing the Fund to purchase up to $300 million worth of CD`s from banks with operations in Alaska. The Board approved changes to the CD program guidelines, removing references to sections of the Alaska Statutes that are no longer in place.

The Board was briefed on three of the Fund`s internal portfolios. Rose Duran, Manager of Real Estate Investments reviewed recent activities and performance for the real estate portfolio, while CIO Rick Shafer explained plans to weight more of the Fund`s bond allocation toward the existing high yield mandates in the portfolio. Mr. Shafer also discussed future increases to the newly funded infrastructure allocation, as well as absolute return and private equity.

The next regular meeting is scheduled for May 28 and 29 in Anchorage.