By DEVEN MITCHELL, CEO & EXECUTIVE DIRECTOR APFC
I was born about a decade after Alaska became the 49th state, and have shadowy memories of life before oil revenue poured in. The preparedness to take care of ourselves demonstrated by gravel and shovels in the back of trucks during the winter, the limited access to markets reflected in ordering clothes out of a 2-inch-thick JCPenney catalog once a year, or the reality of drinking powdered milk because that’s what was available, were not unique to my household.
The Alaska Permanent Fund embodies that generation’s pioneering, hardy spirit. Those Alaskans, who had far less than we do today, selflessly chose to transform a portion of our resource wealth into a renewable financial resource for future generations rather than spend it on themselves. That foresight and generational sacrifice have proven invaluable to our quality of life today. Out of respect for the past and with the vision of a vibrant future, the Alaska Permanent Fund Corporation (APFC) is committed to ensuring the Fund continues to be a source of strength, stability, and shared prosperity for every Alaskan.
At this 49-year mark, APFC’s mandate remains clear: protect and grow the Alaska Permanent Fund for all generations. The 2025 APFC Annual Report, “49 Forward, ” reflects that progress.
Long-Term Performance
This past fiscal year, the Permanent Fund delivered strong results, exceeding long-term benchmarks and demonstrating the value of a disciplined, diversified investment strategy. As of June 30, 2025, the Permanent Fund reached a record high of $85.1B, with over $7.8 billion earned and a 9.35% rate of return. The ability of the Fund to beat its performance metrics over the long-term matters more than any one year’s market high. While markets inevitably fluctuate, the Fund is constructed to provide steady, risk aware performance and to maximize reliable long-term returns.
Generating Revenue for the State
The Alaska Permanent Fund has become a cornerstone of the state’s finances, providing more than half of the unrestricted general fund through the 5% Percent of Market Value draw. This draw is based on a historical 5-year average balance of the Fund and provides a very predictable and stable transfer to the state. The current two-account structure was created almost 50 years ago and has been incredibly resilient over that time. However, the Fund’s investments and accounting rules have changed substantially, which has led to inconsistent inflation proofing, vulnerability to unsustainable draws, or, in certain markets, earnings that aren’t spendable. It’s time to modernize.
One Fund. Built for Generations.
When you describe one fund, with constitutional deposits, that has one limited draw per year, where the fund’s remainder is permanently protected from politicians, most people think that is what we already have. Well, actually, the current Fund structure is very complex, is vulnerable to inflation, overdraws, funding limits, and adheres to accounting rules that are long gone. I’ve found the average Alaskan has little understanding of these risks and quickly shifts to “how can we make it better?” and truly “permanent.” Shifting to a single constitutional endowment will secure automatic inflation proofing, reliable funding, and a protected Principal for future generations.
Transparency & Engagement in Action
The Alaska Permanent Fund was built by Alaskans to benefit Alaskans, and its stewardship depends on engagement and transparency. On October 1–2, APFC’s Board of Trustees will host its Annual Meeting on the Fund’s performance, strategy, and direction; we welcome public participation. Send your public comments via [email protected]. Forty-nine years have shown what a generation of extraordinary Alaskans can provide. It is now our generation’s turn to build on that legacy so that when the Alaska Permanent Fund turns 98 in another 49 years, Alaskans will be just as grateful to us.
About APFC
The Alaska Permanent Fund Corporation (APFC) manages the assets of the Alaska Permanent Fund, a globally recognized sovereign wealth fund. Established in 1976, the Fund preserves Alaska’s nonrenewable mineral and oil wealth as a renewable financial resource for current and future generations of Alaskans. The Fund also serves as the primary source of revenue for Alaska’s unrestricted general funds, supporting the state’s economic stability and prosperity. APFC is a quasi-independent state agency with one mission: to manage and invest the assets of the Alaska Permanent Fund and other funds designated by law. As of June 30, 2025, the Alaska Permanent Fund is the
largest sovereign wealth fund in the U.S., with $85.1 billion in assets. For more information, visit apfc.org.