Alaska Permanent Fund Corp., Juneau, returned -1.2% for the quarter ended Sept. 30, slightly above its benchmark return of -1.6%, said a news release from the $50.7 billion sovereign wealth fund.
The top performer was private equity, which returned 5.4%; followed by infrastructure, 3.8%; non-U.S. bonds, 1.8%; real estate, 0.2%; absolute return, 0.1%; U.S. bonds, -0.2%; U.S. equity and outsourced CIO allocations, -0.9% each; private markets outsourced CIO allocations, -2.1%, global equity, -2.8%; multiasset emerging markets, -4.2%; international equity, -5.4%; and “true special opportunities,” -5.5%.
Managers that belong to the sovereign wealth fund’s outsourced CIO program focus on liquid assets such as REITs, public equities and fixed income, said spokeswoman Laura Achee.
The private markets OCIO program is led by Apollo Global Management and The Carlyle Group. Apollo focuses on private credit investments, while Carlyle handles investments in natural resources, agriculture, metals, mining, among other areas.
The permanent fund’s fiscal year ends June 30.
“After two years of rising markets, a correction isn’t unexpected,” said Michael J. Burns, CEO, in the news release. “It appears that the European and Asian markets are facing more challenging circumstances and may stay down in the coming months, but here in the U.S. the economic indicators appear sound. The U.S. markets have been more positive since the end of the first quarter, and with the majority of the fund’s investments in all of the asset classes based in the U.S., I’m feeling optimistic about the fund’s returns in the coming months.”
The sovereign wealth fund has a target allocation of 36% stocks, 20% bonds and cash, 12% real estate, 6% each private equity and absolute return, 4% infrastructure and the rest in “other,” according to the fund’s website.
Mr. Burns could not be reached for additional information by press time.