JUNEAU, Alaska - The $17.9 billion Alaska Permanent Fund Corp. might raise its passive equity allocation, move some of its fixed-income portfolio to external management and possibly adjust its real estate allocation.
Terry A. Brown, chief investment officer, said the issues could be decided at the December trustee meeting, though no agenda has been set so far.
The fund now has 17%, or $1.3 billion, of its $7.9 billion equity allocation passively managed, all in a Standard & Poor's 500 Stock Index fund managed by Bankers Trust Co., New York. He said most major funds have about 30% of assets passively invested in equities.
Mr. Brown said the fund is considering moving closer to the norm but is still considering how much to move, types of indexes to consider and managers.
In fixed income, the fund may move some its $7.6 billion in-house portfolio outside. It is still discussing how much. Mr. Brown said the fund would seek more diversity and probably a global allocation.
The portfolio now has no international bonds.
In real estate, the fund is considering whether to raise or lower its allocation, now at 8.2%. A decision on the spread - anywhere from 7% to 10% - depends on where trustees think real estate will fit based on the its performance vs. other asset classes.
Callan Associates Inc. is assisting with the passive and fixed-income studies, while Saylor Property Capital Inc. is assisting in the real estate study.