Alaska Permanent Fund Corp., Juneau, posted a preliminary net return of 5.2% for the fiscal year ended June 30.
The $78.6 billion sovereign wealth fund's return fell just short of its performance benchmark return of 5.7% for the period, according to a performance report on its website.
For the three and five year ended June 30, APFC returned an annualized net 10.5% and 7.9%, respectively, above the respective benchmarks of 9.5% and 7.5%.
The sovereign wealth fund had returned a net -1.3% for the fiscal year ended June 30, 2022.
The latest fiscal year's improvement over the prior period reflects improved returns both in equities and fixed income. For the year ended June 30, the Russell 3000 and Bloomberg U.S. Aggregate Bond index returned 19% and -0.2%, respectively, well above the respective returns of -13.9% and -10.3% for the year ended June 30, 2022.
By asset class for the fiscal year ended June 30, public equities were the top performers for the sovereign wealth fund, led by global equities, which posted a net 16.7% (just above the 16.1% benchmark), followed by domestic equities with a net return of 14.5% (below the 19% benchmark); international equities, a net 10% (12.5%); domestic high yield, 8% (8.1%); private credit, 7% (7.3%); infrastructure, 5.1% (6.6%); absolute return, 3.8% (1.6%); fixed income cash, 3.6% (3.6%); investment-grade corporate fixed income, 2.6% (1.6%); international fixed income, 1.1% (1.1%); domestic fixed income, flat (-0.9%); U.S. Treasury inflation-protected securities, -1% (-1.4%); domestic structured products, -1.9% (-1.5%); private equity and special opportunities, -2.1% (-4.5%); real estate, -2.5% (-4.1%); and income opportunities, -4.1% (6.9%).
As of June 30, APFC's actual allocation was 19.7% private equity and special opportunities, 18.3% fixed income, 13.2% global equities, 11.9% domestic equities, 10.5% real estate, 9.4% international equities, 7.2% absolute return, 5.1% infrastructure, 2.6% private credit, 1.3% cash, and 0.9% income opportunities.
