Alaska Permanent Fund Corp., Juneau, will consider investing in private equities and adding enhanced indexing, said Terry Brown, chief investment officer.
On Feb. 24, the board of the $27 billion fund will hold an educational meeting in Anchorage to study investing in private equities. Last year, legislation was passed boosting the funds maximum equity allocation to 55% from 50%, and incorporating a 5% basket clause allowing the fund to invest in private equities. As a consequence, the fund in November bumped up the strategic equity allocation to 53% from 48%, while reducing domestic fixed income to 35% from 40%. International bonds remained at 2%, while real estate held steady at 10%.
In March, the board will discuss enhanced indexing as a concept, but no recommendations will be considered. Currently, 35% of the funds $15 billion equity portfolio is indexed, while the remainder is actively managed.
Callan Associates is assisting.