Alaska Permanent Fund Corp., Juneau, authorized invitation-only searches for one or more infrastructure managers and at least one active developed markets manager, said CEO Mike Burns. The board of the $37.3 billion fund may invest up to 2% of total assets, or $750 million, in infrastructure funds, but the size of the allocation will be determined by how attractive the available funds are, Mr. Burns said.
Funding for the developed market mandates will come from $3.7 billion in two portfolios managed by Mellon Capital that track the MSCI EAFE index. Mr. Burns said the board has not decided how much to shift from the passive mandates.
Consultant Callan Associates will pull together a list of candidates for both searches; the board expects to make final decisions at its May 30-31 meetings.
In addition, the fund hired AllianceBernstein, GMO and AQR to each manage $500 million in active global equities, completing the funds 14% allocation to the area. Funding will come from rebalancing the funds U.S. and international allocations, and no managers will be terminated.
The fund also committed up to $500 million to Crestline Investors distressed opportunities fund. Funding will likely come from the $9.1 billion internally managed bond portfolio. The fund currently has a $200 million exposure to distressed investments, about $50 million in private equity and $150 million in its absolute return portfolio. Crestline currently runs a $581 million absolute-return strategy for the fund.