Alaska Permanent Fund Corp., Juneau, has stopped plans for two alternative investments approved in July because of a 25% decline in the Permanent Funds value since then as well as renewed efforts to meet the funds target asset allocation, according to spokeswoman Laura Achee.
At its July meeting, the board had committed $250 million to Alinda Capital Partners Infrastructure Fund II and $400 million to private equity fund-of-funds manager Pathway Capital Management to invest in small and midmarket private equity funds investing in companies with market capitalizations of $1 billion or less.
As of Wednesday, the $27.7 billion fund had 26% in U.S. bonds, 22% in U.S. stocks, 14% in real estate, 12% in alternatives, 11% in global stocks, 10% in non-U.S. stocks, 4% in non-U.S. bonds, and 1% in Alaska CDs. The funds target asset allocation is 26% U.S. stocks, 19% U.S. bonds, 14% global stocks, 13% non-U.S. stocks, 10% real estate, 6% each for private equity and absolute return, and 3% each for non-U.S. bonds and infrastructure.
Separately, the board endorsed a bill proposed by Gov. Sarah Palin to divest in companies that conduct or have direct investments in business operations in Sudan. Ms. Palins bill is one of four Sudan divestment bills proposed this year in the state Legislature.
We appreciate that the situation in Sudan is unique because it has been labeled as genocide by the federal government, and in particular because Congress passed safe harbor legislation last year allowing fiduciaries to make this particular divestment, board Chairman Steve Frank said in a news release. We respect that Alaskas elected officials have the authority to make the final call on a divestment policy, and our preference is for legislation that has the least impact on the investments of the fund, in accordance with our role as fiduciaries.
The board also hired George Zinn, currently corporate vice president and treasurer of Microsoft, as an adviser.