Permanent Fund’s exposure to Silicon Valley Bank is slight

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The Alaska Permanent Fund has just a slight exposure to the Silicon Valley Bank, which was shut down after being taken over by federal regulators on Friday.

“Last week, U.S. banking regulators closed Silicon Valley Bank, a bank that specialized in commercial banking for the technology sector. Over the weekend, federal entities took measures to ensure that the depositors of Silicon Valley Bank would be held harmless. At this point, a handful of additional banks are experiencing substantial distress or have also been closed by banking regulators. These banks include Silvergate, Signature Bank, and First Republic,” said the Alaska Permanent Fund in a statement

“The Alaska Permanent Fund Corporation has exposure to these banks in the form of passive investments in index funds. As of Dec. 31, 2022, the market value of these investments totaled $7.6 million. The total market value of APFC investments on December 31 was $74.4 billion. 

The APFC said that many portfolio companies in its private equity portfolio used Silicon Valley Bank for operating purposes. As of today, APFC understands that those companies’ deposits have been guaranteed by the federal government.

“The APFC is a fully diversified global investor,” stated Executive Director Deven Mitchell. “At any point in time, some sector of the economy can experience distress.”  Chair Ethan Schutt stated, “The Board of Trustees is committed to maintaining prudent diversification of its investments. While the U.S. and global economies continue to make progress toward emerging from the global pandemic, we should not be surprised by periodic reversals in various sectors.”

The APFC said it will will continue to closely monitor this situation.

Over 1,500 green energy companies, including solar, wind, and “Environmental, Social, and Governance” entities had their accounts at SVB.

7 COMMENTS

  1. How much dose the PFD have invested in gold or silver physical bars or coins ??? ?I would think this would be a important thing to talk about at this point. ⏳⏳ And should have been a great thing to invest in as in the last 20 years Gold. Has gained 450 percent in value and should have been a real safe gain for us Alaskans✍????

  2. From the Permanent Fund webpage: “TOTAL FUND VALUE AS OF JANUARY 31, 2023 $76,990,000,000
    Principal $63.0 Billion | ERA $13.9 Billion”

    Somehow, the Juneau legislators still think we don’t have enough money for a full statutory permanent fund dividend to eligible residents of Alaska. Currently, there are bills being considered that set the maximum PFD at $1,000, and split Permanent Fund earnings: 75% will be for state spending and 25% will be for dividends. Tell your legislators what you think of their bills by calling, emailing, sending a Public Opinion Message or whatever communication method you prefer.

  3. This is mistake #2. The last one was investing in a California stock company that had PDF assets to the tune of 200 million that vaporized over the FTX fiasco. Is the PDF division hiring wokies to manage our money..? Seems wokies are cratering out anything that had any value.

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