Alaska Permanent Fund Corp., Juneau, returned 1.2% in the quarter ended March 31, trailing its performance benchmark return of 2.3%, said a spokeswoman for the $52.5 billion sovereign wealth fund in an e-mail.
Top-performing asset classes for the quarter included non-domestic fixed income, which returned 5.2%; private equity, 4.2%; domestic fixed income, 3.2%; and real estate, 2.1%.
Among the other asset classes, non-U.S. equities returned 1.3%; public and private credit, 0.5%; U.S. equities, 0.3%; global equities, 0.1%; infrastructure and other real assets, 0.9%; absolute return, -1.5%; private markets outsourced CIO allocations/real return, -1.7%; and “true special opportunity,”-6.51%.
“A sharp dip in U.S. and overseas markets held through to mid-February, before turning back up to end March just below where they started in January,” said Angela Rodell, CEO, in the release. “The midquarter rally appears to have been fueled by several things that calmed investors’ concerns: increases in oil and other commodity prices, European Central Bank stimulus actions, including buying corporate bonds for the first time, and signals from the Federal Reserve that short-term interest rates will not rise in the coming months.”
Fiscal-year-to-date through March 31, the permanent fund returned -0.9%, lagging its performance benchmark return of -0.3%. The sovereign wealth fund's fiscal year concludes on June 30.
The 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 16% other, according to its website.