The Alaska Permanent Fund Corp., Juneau, hired Goldman Sachs Asset Management and Capital Guardian Trust to manage $100 million each in domestic and global high-yield bonds, respectively. It is the $34.2 billion fund's first move into high-yield bonds. Funding will come from a $7.5 billion internally managed core fixed-income portfolio.
In addition, the board increased its emerging markets stock target to 3% of assets from 2%, while reducing U.S. small-cap stocks to 5% from 6%. The markets have effectively made the shift for the fund, so no asset transfers will be required, CIO Rick Schafer said.
Separately, fund officials discussed infrastructure investments in context of a proposal to create a natural gas pipeline in the state. The Alaska Legislature has been debating whether to approve a new pipeline in a special session, but no decision has been made. However, the fund might move into infrastructure at some point anyway, given the attractions of the asset class, Mr. Schafer said. There's no timetable or possible target allocation. In April, the board hired Pace Global Energy Services to advise on potential Alaska gas pipeline investments and to educate the board on infrastructure investments in general.
Callan Associates is the consultant.