Alaska Permanent Fund Corp., Juneau, returned 4.6% for the first quarter of fiscal year 2014 ended Sept. 30, according to a news release from the sovereign wealth fund.
The overall value of the fund increased $2.2 billion in the quarter to reach $47 billion. However, the Permanent Fund lagged the 5.7% benchmark return for the quarter as its investments were positioned more conservatively than the composite benchmark, according to the news release.
Strong equity returns were the main driver. International equity returned 8.8% for the quarter, while domestic and global equity returned 8.3% and 8%, respectively. Real return was the next-best asset class for the quarter at 1.9%, followed by real estate, 1.7%; absolute return, 1.4%; international bonds, 0.8%; and domestic bonds, 0.7%.
“Although economic indicators suggest that we should be seeing more sluggish returns, both U.S. and overseas markets ended the quarter on high notes,” CEO Michael Burns said in the release. “The path wasn't completely smooth. Concern over whether the Fed would continue its stimulus program led to a dip in U.S. stocks midquarter, but the Fed held steady leading to a September rally.”
