Alaska Permanent Fund Corp., Juneau, approved a five-year investment management plan at its meeting Wednesday that includes increasing targets to private equity, real estate and infrastructure, and reducing targets to global equities, the fund announced in a news release.
The $54.8 billion sovereign wealth fund established a new target allocation structure for the five-year investment plan. Alaska Permanent will split assets by investment objectives — 60% growth and 40% income — and also splits assets into categories based on liquidity — 55% tradable/liquid and 45% illiquid.
Falling within the growth and illiquid categories, the target to “private equity and special growth” increases to 17% from 10%, while the target to absolute-return funds falls to 6% from 10%.
Within both the income and illiquid categories, real estate's target increases to 13% from 11% and “infrastructure and special income” rises to 9% from 3%.
The sole asset class that falls within the growth and tradable categories is global equity, whose target falls to 37% from 39%.
The target to asset classes falling within both the income and tradable categories falls to 18% from 24%. Asset classes falling within income and tradable categories include investment-grade fixed income, high-yield fixed income, emerging markets fixed income, real estate investment trusts, infrastructure securities and cash.
Among other recommendations adopted at the meeting as part of the five-year plan were to expand risk capabilities and resources, expand reporting on private investments, increase staffing or partnerships in tradable income asset classes and increase in-house money management on some asset classes.
Paulyn Swanson, Alaska Permanent's communications manager, could not provide further information by press time.