Alaska Permanent Fund Corp., Juneau, returned 1.02% gross of fees for the fiscal year ended June 30, below its 1.57% performance benchmark, the $52.9 billion sovereign wealth fund announced Thursday.
Infrastructure and other real assets returned 17.59% for the fiscal year, followed by private equity at 14.38%; private markets OCIOs/real-return allocations, 9.68%; non-U.S. bonds, 7.3%; U.S. bonds, 5.29%; U.S. stocks, -0.09%; absolute return, -1.92%; global stocks, -4%; non-U.S. stocks, -9.39%; and true special opportunity, -18.71%.
As of June 30, the permanent fund had an asset allocation of 19% U.S. bonds, 16% non-U.S. stocks, 13% real estate, 12% each U.S. stocks and global stocks, 10% absolute return, 7% private equity, 3% each infrastructure and other real assets, 2% each non-U.S. bonds and public/private credit and 1% private markets OCIOs/real return allocations.
“Diversification proved its value in 2016,” CEO Angela Rodell said in a news release. “Despite losses across nearly all equity markets, the gains in the fixed income, real estate and private market investments led to overall growth for the permanent fund.”
The sovereign wealth fund's overall return objective for fiscal year 2016 was 6.01%.
For the three and five years ended June 30, the permanent fund returned an annualized 7.04% and 6.35%, respectively, ahead of its benchmarks of 5.36% and 4.85%.
A spokeswoman could not immediately be reached for additional information.