FUND NEWS                               Apr 23, 2009

March rally eases Permanent Fund losses in third quarter

APR 23 - A rally in the global markets produced strong returns for the Alaska Permanent Fund in March, but overall the Fund was down for the third quarter of fiscal year 2009, returning -4.93%. The total value of the Fund at quarter end was $27.4 billion, down $1.4 billion from the start of the quarter.

APR 23 - A rally in the global markets produced strong returns for the Alaska Permanent Fund in March, but overall the Fund was down for the third quarter of fiscal year 2009, returning -4.93%. The total value of the Fund at quarter end was $27.4 billion, down $1.4 billion from the start of the quarter.

“It’s too early to say we’re out of the woods, but it feels good to have seen a few weeks of positive returns,” said CEO Michael J. Burns. “We’re not calling the bottom of the market yet, but we are hopeful that the worst is behind us.”

The Fund’s U.S., non-U.S. and global stock portfolios returned 9.1%, 7.7% and 7.0% respectively, contributing to a 4.3% Fund return for March. However, the same stock portfolios returned -9.5%, -9.6% and -11.6% respectively for the quarter.

The U.S and non-U.S. bond portfolios both returned 1.6% for the month of March, but had mixed results for the quarter. The U.S. bond portfolio returned 0.2% for the quarter, ahead of its benchmark return of 0.1%, while the non-U.S. portfolio returned -3.3%. The Fund’s real estate investments were flat for the quarter with a 0.1% return, while the absolute return portfolio returned 0.7%.

For the quarter, the Fund lost $1.3 billion in statutory net income, the value used to calculate the Permanent Fund Dividend distribution. The cumulative year-to-date value for statutory net income is -$2.3 billion.