Alaska takes a risk management approach to asset allocation

Mon Oct 5, 2009

Alaska Permanent Fund plans new distressed debt play and 'mini-funds' to enhance the $6.5 billion opportunities portfolio. Susan Barreto looks at how history has shaped the fund's actions

New distressed debt play and 'mini-funds' enhance $6.5 billion opportunities portfolio further

By Susan Barreto

The $31 billion Alaska Permanent Fund has been a rich gift most Alaskans may take for granted and probably does not seem to carry the caché that one would expect from being the only US-based sovereign wealth fund.

Alaska residents' annual cheques over the course of 27 years have ranged from $331 to well over $1,000. This autumn marks only the third time in the fund's 33-year history that staff have reported a net loss. Following 2008's record breaking dividends that resulted in $1.8 billion in payouts, the investment gains that are used to calculate citizens' cheques took a severe beating this past year. The other two years that resulted in negative returns are 2001 and 2002.

The perceived value of the Alaska Permanent Fund has had nothing to do with royalty...

ISSN: 2151-1845 / CDC10004H

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