Alaska Permanent Fund Corp., Juneau, had a preliminary return of 0.02% for the fiscal year ended June 30, topping its composite benchmark of -0.2%, according to a news release from the $40.9 billion sovereign wealth fund.
Real estate had the highest return at 11.4%, followed by private equity, 9.8%; U.S. bonds, 7.8%; non-U.S. bonds, 6.5%; real return, 5.7%; absolute return, 0.4%; and infrastructure, -8.4%. (All alternatives returns are as of March 31).
The global equity portfolio was down 4.7%, hurt by a -14.6% return for the non-U.S. portfolio. U.S. equity returned 2.3%.
Final audited performance results for real estate and other asset classes will be available at the board’s annual meeting in September.
Alaska Permanent’s target asset allocation is 36% equity, 21% bonds, 12% real estate, 6% each absolute return and private equity, 4% infrastructure, 2% each public/private credit and cash, and 11% other.
“It was a volatile year for the global stock markets, particularly overseas markets,” said Michael Burns, CEO of the sovereign wealth fund. “Stocks make up about half of the fund’s investments, so they had the largest impact on our performance. However the bond and real estate portfolios performed quite well over the course of the fiscal year, helping mitigate the poor performance from stocks and creating a positive return for the permanent fund.”
