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Sovereign Wealth Funds

Alaska Permanent Fund gains 10.74% in fiscal year

Alaska Permanent Fund Corp., Juneau, returned a gross 10.74% in the fiscal year ended June 30, said spokeswoman Paulyn Swanson in an email.

The $64.9 billion sovereign wealth fund exceeded the board of trustees' strategic long-term return objective of 7.87% by nearly 3 percentage points. The performance-blended benchmark return of the indexes reflective of their asset allocation was 8.2% for the year ended June 30. The three-year and five-year annualized returns of 7.96% and 8.91%, respectively, topped their respective benchmarks of 6.83% and 6.54%. APFC returned a gross 12.57% in the fiscal year ended June 30, 2017.

The best-performing asset class for the fiscal year was special opportunities, which returned 40.13%, followed by private equity at 27.87%; infrastructure, 22.87%; domestic equities, 14.79%; global equities, 11.51%; private credit, 8.79%; international equities, 8.39%; real estate, 6.99%; absolute return, 5.95%; multiasset strategies, 4.45%; asset allocation strategies, 2.58%; cash, 1.28%; and fixed income plus, 0.99%.

The special opportunities portfolio includes absolute return, real return and multiasset strategies that seek market inefficiencies.

As of June 30, the actual allocation was 41.1% public equities, 21.4% fixed income plus, 11.2% private equity and special opportunities, 9.2% asset allocation strategies, 6.7% infrastructure/private credit/income opportunities, 6.1% real estate and 4.3% absolute return.