FUND NEWS                               Jan 05, 2006

Fund reaches $33 billion

The Alaska Permanent Fund Corporation reached a new milestone on January 4, 2006, closing with an unaudited value of just over $33 billion.

Domestic and international stocks were the strong performers, driving the Fund’s value up by almost $400 million on January 3. The rally is believed to have been triggered by information released on Tuesday that the Federal Reserve may stop raising interest rates soon. Additional gains of over $80 million on January 4 brought the Fund’s unaudited value to $33.003 billion.

On November 21, 2005, the Fund reached an unaudited value of $32 billion for the first time. While experts were concerned regarding the potential dampening effect of high fuel prices and the recent hurricane season on the economy, the markets actually provided steady growth in December with all of the fund’s portfolios showing positive returns.

“I am glad that the experts predicting a dampened economy were wrong, and that the Permanent Fund was able to increase by $1 billion over the last six weeks,” said Governor Frank Murkowski.