For the three and five years ended June 30, APFC returned an annualized net 9.3% and 9%, respectively, above their respective benchmarks of 8.1% and 8%.
The sovereign wealth fund had returned a net 29.7% for the fiscal year ended June 30, 2021.
APFC's latest fiscal-year returns reflect a challenging return environment for public equities and fixed income during the past year. For the year ended June 30, the Russell 3000 index and Bloomberg U.S. Aggregate Bond index returned -13.9% and -10.3%, respectively, in sharp contrast to returns of 44.2% and 4.6% for the year ended June 30, 2021.
"The silver lining from a year where the fund did not achieve the level of returns our stakeholders need and expect, highlighted in this performance report, is that the fund outperformed its performance benchmark for nearly every asset class," said Marcus Frampton, chief investment officer, in a performance report on the fund's website. "With APFC's prudent strategy and a well-diversified portfolio, our expert staff continued to identify interesting opportunities and generated returns greater than the passive index and our peer groups indices."
For the fiscal year ended June 30, infrastructure led all asset classes with a net return of 24.4% (above the benchmark of 17.2%); followed by real estate, which returned a net 23.4% (above its 22.8% benchmark); private equity and special opportunities, 17.6% (22%); private credit, 12% (11.8%); absolute return, 8% (-5.6%); income opportunities 6.8% (15%); fixed income, -10.8% (-11%); public equities, -14.3% (-16.5%); and risk parity, -17.9% (-17.3%).
As of June 30, the actual allocation was 33% public equities, 20.8% private equity/special opportunities, 20.1% fixed income, 9% real estate, 6.6% absolute return, 4.4% infrastructure, 2.3% cash, 2.2% private credit, 1.3% income opportunities and 0.3% risk parity.