1 THE ALASKA PERMANENT FUND It reports more quickly and in greater detail than any other public or...
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1 THE ALASKA PERMANENT FUND It reports more quickly and in greater detail than any other public or private fund in the country
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Transcript of 1 THE ALASKA PERMANENT FUND It reports more quickly and in greater detail than any other public or...
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THE ALASKA PERMANENT FUND
It reports more quickly and in greater detail than any other public or private fund in the country
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The Alaska Permanent FundHow is it doing compared to other funds?
How about now?As of September 18, 2008 $34 billionSeptember 20, 2007 $34.9 billion
Alaska Permanent Fund
NACUBO $1 billion
Ending FY 06
1-year 11.0% 15.2%
3-year 11.9% 15.3%
5-year 7.0% 8.8%
10-year 8.5% 11.4%
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RETURNS COMPARED
June 30, 2007
Alaska Permanent Fund 17.13
New Mexico Land Grant Fund 17.9
New Mexico Severance Tax
Permanent Fund 17.8
Princeton University 24.7
June 30, 2008
Alaska Permanent Fund -3.43
Harvard University 8.6
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What are the main issues?
What outsiders say
The Peterson Sovereign Wealth Fund Report
April 2008 A Blueprint for Sovereign Wealth Fund Best Practices
Alaska number 10 world wide in size
Structure – 100
Governance – 80
Accountability and transparency – 100
Behavior – 84
Total: 94
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Only beaten by the Canadian and New Zealand Pension Funds with 95’s
Why the 80 in governance?
Probably because it has not adopted ethical guidelines limiting investments in instruments, activities or countries.
Why the 84 in behavior?
Possibly because no rule or guideline on how it adjusts its portfolio (like using inflows to adjust allocation).
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Commonwealth North Report November, 2007
1. Called for a new payout formula by statute.
2. Called for a substantial Anchorage officeAccessCommunity
3. Called for increased staff compensation.4. Called for an enhanced Board selection process.
CompensationSelection panel
5. Called for increased alternative investments.As of June 30, 2007
Texas 40%Princeton 47%Alaska 14% - Raised to 22% May, 2008
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Does the current board model work?
Can it achieve its goals?
Change in investments
new categories
new complexities
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Captive investment management companies may be the answer
Harvard Investment Management Companyfully integrated investment management company200 employees2008 return 8.6%Went from $34.9 billion to $36.9
UTIMCO$24 billionAugust 2007 returns: Perm. University Fund 15.3%, Gen. End. 13.9%nine member board, including 5 independent
investment professional48 employees
