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
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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