Alaska Permanent Fund Corp., Juneau, directed staff to develop a legislative proposal to boost its basket clause to 15% from 5%, and up the limit on equities to 60% from 55%. The boost in the basket clause could signal a move into alternative investments, though the fund has no current allocation to the area, and any legislation would not be introduced until next January at the earliest.
Separately, the $22.9 billion fund will boost its international fixed-income allocation to 5% of total assets, from 2%, boosting the funds foreign bond target allocation to $1.15 billion. The plan will split the increased allocation evenly between its two international fixed-income managers, Rogge Global Partners and Julius Baer Investment Management, which now manage $403 million and $334 million, respectively. Each firm will receive about $200 million, said Robert Bartholomew, COO. Assets will be taken from the funds $8 billion internally managed domestic fixed-income portfolio. Callan was the consultant.