Alaska Permanent Fund Corp., Juneau, hired Allianz Global Investors to manage $100 million in its structured alpha U.S. equity strategy, pending successful contract negotiations, spokeswoman Laura Achee said.
The strategy is expected to enhance the $50 billion sovereign wealth fund’s performance due to its low correlation to stock market performance.
Funding will come from rebalancing the stock portfolio. As of June 30, the sovereign wealth fund had $5.7 billion, $8.4 billion and $5.5 billion invested in domestic, international and global equity, respectively, for a combined $19.6 billion.
At a meeting earlier this week, the sovereign wealth fund’s board approved an exception to the fund’s investment policy allowing Allianz Global Investors to use stock index options in the strategy. Under APFC’s investment policy, the use of options in the equity portfolio are normally prohibited.