The Alaska Permanent Fund rebounded from a tough finish to 2018 with a 6.48% quarter that put the $65 billion fund back in positive territory for the year.
The gains in the quarter that ended March 31 — the third quarter of the Alaska Permanent Fund Corp.’s fiscal year — gave the fund a 3.07% investment return for the 2019 fiscal year so far, according to a May 23 APFC releasd’s five-year private equity return is 24.3%.ned 10.1% over the period.
The fund held $65.8 billion of assets under management with approximately $1.6 billion of liabilities as of March 31. It ended the 2018 fiscal year last June 30 with a balance of $64.8 billion, from which the state appropriated roughly $2.7 billion to pay out Permanent Fund dividends and support government services.
Most recently, the fund had a net balance of $65.3 billion with slightly more than $19 billion in the Earnings Reserve Account, which is the portion of the fund state lawmakers can appropriate from.
Calculated as 5.25% of the fund’s five-year average value, the fiscal 2020 percent of market value, or POMV, appropriation is expected to be roughly $2.9 billion.
Legislators are currently debating whether or not to make an additional draw from the Earnings Reserve that would be outside of the POMV appropriation — despite warnings from financial advisors about the long-term impacts of such ad-hoc draws — in order to pay the larger Permanent Fund dividends that Gov. Michael J. Dunleavy demands.
The latest 6.48% quarterly return was driven by “an outstanding” 12.36% return on the fund’s public equities or stocks, portfolio, which comprises about 40% of fund investments, the APFC release states. For comparison, the Dow Jones Industrial Average gained 10.1%