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.
The only way I would forfeit my PFD rights is if the state would not be such a money hammer costing my business almost out of existence and also if my property tax was at least cut in half.
Alaska is functionally bankrupt at present, even with combined funds managed by PF Corporation.
In about 22 months, Alaska will hit major cash flow situation
The current POMV draw at 5% is unsustainable over long run, especially given that it’s not absolutely post inflation proofing.
The PF Corporation is paying excessive management fees to handle investments.
The sunny optimism about meeting benchmarks is unsettling given these are self-selected metrics.
But everyone gets a good conduct medal for whatever they do in contemporary society.
As long as the PF has trustees like Craig Richards fooling around with the PF, the likelihood of genuine fiscal success is in doubt.
Alaska spent way too much of our non-renewable oil revenues and saved too little.
We continue to spend too much, the revenue projections look very dicey and there is nobody in the current executive branch willing to deal with a difficult fiscal reality.
Harsh fiscal times are on the the horizon and all the sunny sentiments floated in this puff piece border on delusional.
Oh well, it was interesting while the bubble lasted.
talk is cheap Deven.
Alaskans gave away mineral rights under their own land so that everyone would have a share.
Until lawyer Walker showed Juneau how to steal it.
Can we afford another lawyer for governor?
No! We can’t afford to have any of the ten that worked for the present administration whose fundamental goal is fraud, waste and abuse.
Can we afford any current politician or AG as Governor? If they have already had their hands in your pocketbook, what makes you think they would make a good governor?
Bernadette Wilson is really your only good option.
NOPE! We can’t afford the spineless one we got.
No. Vote Bernadette.
Communism always ends up with the government owning everything. Nothing is ever for the good of all.
Smoke, mirrors, and stockyard sludge Mr Mitchell. If you have one account, the legislature can appropriate it – ALL OF IT, including the principal. This is the labor unions’ and communists’ dream – steal the entire fund, then tax the people into slavery. But but but, we’ll pass it as a constitutional amendment so they can’t touch the principal! NOT – the State supreme court will still declare it an appropriation subject to legislative control.
Stop trying to steal the money in the ERA. No merger of the corpus with the ERA.
Perhaps Devon is too young, or inexperienced to lead the fund. This statement shows he’s out of his league:
“Shifting to a single constitutional endowment will secure automatic inflation proofing, reliable funding, and a protected Principal for future generations.”
We are not going to change the Alaska Constitution so that the legislature can go into the principle of the fund. This is madness. The only reason some are floating this insanity is because Big Oil realizes that the giveaway of our oil under SB-21 is bankrupting the state. We’ve lost $70,000 in dividends now- for a family of four- because we are giving away our oil for less than any major field anywhere in the world. Now that this has emptied out other savings accounts the push is on by the scum to go into the principle of the fund so the vast rip off of our resources can continue.
Note the Permanent Fund- if properly inflation proofed- should be well over $100 billion now. Its not. And that is because we are giving away our oil.
“…….Alaskans gave away mineral rights under their own land so that everyone would have a share………”
Got some gravel under your vast tracts of land? I bet you can sell it……………..
I want to Thank Dave Rose (Tony’s buddy) for doing a great job growing this fund.
He does have a park named after him in one of ANC’s crappy neighborhoods (in the news ALL the time for crime) but I always thought he deserved more credit.
Certainly more then that scheisskopf Walker (name NOTHING after Walker)
The legislature continues to steal the pdf even after two consecutive Republican majorities. Why do we allow this?
Hmmm… Warren Buffett uses the S&P 500. He outperforms you folks every year, with few exceptions. You cost us almost $900 Million last year to barely make one of your benchmarks…. We don’t even show the $900 million in the budget…which is a hidden 1% from the POMV 5%….
We need to fire some where between 50-60 PF Corporation employees and go to a passive, affordable and by far a higher rate of returns… I know, it would be a Union heat stroke…
Enough of political cronie appointees… We have lost Billions and getting rid of you would be the equivalent of finding new revenue sources…
I was there too. I remember the high hopes. Thought we would have roads and things. Thought the state economy would grow somewhat equally. Has it?