Despite volatility in markets, Permanent Fund exceeds benchmarks

The Alaska Permanent Fund Corporation reported a 4.55% return on the Alaska Permanent Fund through the first three quarters of the current fiscal year, which ended March 31. The year-to-date performance matches the Fund’s passive benchmark and exceeds the 4.26% performance benchmark set for the same period.

The Fund’s performance is evaluated against three key benchmarks: a passive benchmark composed of a blend of passive indices; a performance benchmark, which aggregates the benchmarks of individual asset classes at their target weights; and a long-term real return objective of 5.50%, representing inflation (as measured by Consumer Price Index) plus 5%.

Over a five-year horizon, the Fund’s returns have consistently outperformed these targets. The total Fund earned an annualized 10.49% return over the past five years, surpassing the passive benchmark (9.71%), the performance benchmark (9.93%), and the 5.50% real return objective (9.38%).

“I am pleased that APFC’s active investment management approach has added value against the performance benchmark we have been assigned both in the short term (FYTD) and the longer time horizon that we manage portfolios against (5-year). In this period of increasingly turbulent markets, our active approach to investment management and our diversified asset allocation should provide stability to our stakeholders,” said Marcus Frampton, APFC Chief Investment Officer.

The Fund’s strategy relies on active investment management and diversified asset allocation, with the goal of achieving a real return of 5% annually over the long term.