The Alaska Permanent Fund Corporation announced a new Alaska Investment Program.
The Fund’s Board of Trustees passed a resolution last week directing the staff to bring in external private market fund managers to execute the private market investment program, and allocated $200 million to the initial effort.
Following a competitive process, two external fund managers were selected to implement this strategy: McKinley Capital Management, LLC and Barings, LLC.
“We are excited to get this program underway and look forward to working with these two managers to achieve competitive, market-based investment returns and capture investment potential right here in Alaska,” CEO Angela Rodell said.
McKinley Capital Management, LLC was founded in 1990 and today is the largest private financial services company in Alaska. McKinley currently manages approximately $5 billion worldwide for corporate and public pension funds, sovereign wealth funds, and other institutional investors.
A subsidiary of MassMutual, Barings, LLC is a global investment firm dedicated to meeting the evolving needs of clients and customers. Headquartered in Charlotte, North Carolina, Barings LLC and its subsidiaries have $325 billion under management and maintain a strong global presence with business and investment professionals located across North America, Europe and Asia Pacific.
Additional information on the In-State Investment program and contact information for McKinley Capital Management, LLC and Barings, LLC is available at the Permanent Fund Corporation website, under ‘What We Do / In-State Investments’.
I am glad to see the P Fund corporation looking at investments in Alaska, provided those investments are business driven and not politically driven projects.
The fund is doomed if it starts making politically driven investment decisions.
(Which is a strong possibility if we allow the legislature to use P-Fund dividends to support government rather than being paid directly to Alaskans.)
Is this really a new program? The resolution authorizing was in 2018, was it not.
Need some clarification on whether this is significant change.
As I recall from our discussion several weeks ago, you consider this action to be both unwise and unnecessary. (Please correct me if I am wrong…). It would seem that the PF Board has a different perspective. As I understand the chain of events, the Board directed the staff to develop a plan in 2018; this latest move is to implement the plan. My math may be wrong but this program would invest a whopping 0.4 percent of the PF in Alaska, or something less than the PF has invested in Tyson’s Corner mall in Virginia.
What a coup. The “permanent fund” is going to “invest” one three hundred fiftieth of the PFD in Alaska. Absolutely astounding. That’s a milestone to be proud of. What about the rest of the PFD? That one that belongs to Alaskans. Politicians and pundits think they can ‘manage’ the PFD better than the citizens of Alaska. It’s “throw a bone to the PFD advocates” and maybe they’ll shut up about the theft of their statutory PFD disbursement, as required by Alaskan statute. Not happening. Theft is theft. What the heck good does it do for Alaskans that have been robbed of their rightful PFD? None. That’s what. Politicians playing the appeasement game think Alaskans are stupid. They aren’t. Pay out the statutory amount instead of giving it to “public sector” employees and you’ll be, not only saying, but doing the “politically correct” thing that might get you re-elected. Otherwise, close your trap. Enough is enough.
The dividend portion of the Permanent Fund was already investing in Alaska through the people of Alaska. Then the failed former Governor Walker did a money grab and subsequent legislatures have stolen the investment in Alaska from the people of Alaska.
If the Permanent Fund Corporation wants to invest in Alaska they should tell the thrives in the legislature to invest in Alaska through Alaskans by paying the statutory dividend.
More of Walker’s crappy personnel doing the State of Alaska a big favor. Threw $200 million out the door in a show of good faith investing!!! Whew!!! Palin got rid of $500 million, Walker threw $60 million at that to get rid of a contract, then the legislature went wild, namely the (6) idiots, Giesel, Coghill, Stedman, Bishop, VonImhof, and put the state deeply in debt…just a few billion…and now, lucky us, the people who live in the state watching the “dim wits” at it again.. How much of the throw away investing goes in the pockets of the crew investing it? I bet there is a relationship to missing money, (6) idiots used as a decoy and the throw away monies. Having fun I bet!! Where is the diligent Governor and his diligent Attorney General?
Big mistake. The goal is not to invest in Alaska. That is done with the PFD. OTOH, the real goal is to grow the Permanent Fund as large as possible as quickly as possible and minimizing investment risk. One wonders what investing in Alaska really means. Bill Walker’s white elephant of a LNG pipeline? A fish processing plant in Anchorage? How about a dairy in the MatSu? Historically, publicly supported investment haven’t done all that well. Would be a shame to swing some unspecified portion of a $66 billion portfolio into the next exercise in unicorns, rainbows and pixie dust. Cheers –
Investing a small fraction of the PF in Alaska does not have to take the form of the PF being the sole or even leading investor in projects. The PF can become a participant in providing investment in projects in which other major investors take a leading role. Under such an approach, the PF would take on risk, but others would take on more, perhaps much more, of the risk. And Alaska can receive a benefit from the PF – a benefit in addition to the dividend – that has been completely lacking over the last forty years.
You all missed the retired Permanent board member under the Parnell Administration that was going to invest in Alaska with $600 million from the permanent fund to build and buy homes in Alaska and elsewhere. What happened to the retired Permanent Dividend Fund member? Out the door with the $600 million and no one has heard from him again. The Permanent Fund is not monitored at all. If the Governor knows what is there, no one else gets that information. so…stealing from the fund and calling it something else has been happening all along. Every Governor takes what he wants. Tony Knowles took $8 million and at the time, the leader in the Senate had a fit because he couldn’t have his share. After all, he helped Knowles get elected.
Suzanne,
I would love to see an in depth piece showing Alaskans the 75 countries that our PF is invested in…
I think many conservatives would be appalled at where AK’s billions are invested…
We not only need investment in Alaskan companies (which could be subsidiary oilfield services) but future investments in home grown small businesses and local economies that will help the poverty and crime more than 100 new troopers could accross this state.
So exactly which politicians (or friends of politicians) are they going to invest in?
Invest in Alaska . . . Outside investment management? Yeah, right.
Isn’t it odd that an out of State Investment firm was one of the firms selected to manage this In State Investment Program? Who are they related to and what do they know about Alaskan Investment? It is about as bad as the State using Outside firms to administer the pension plans. What about Local?? that is good work and would attract skilled workers…
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