APFC Welcomes New Trustee John Binkley and Reaffirms Commitment to Strong Governance

The Board of Trustees of the Alaska Permanent Fund Corporation (APFC) convened for its quarterly meeting in Juneau and via Teams Webinar on February 12-13, 2025. Key discussions included the Fund’s performance, an in-depth review of the Real Estate asset class, and updates on compliance, governance, and the APFC’s youth education initiative. The Trustees also welcomed a new member to the Board.

"We are pleased to welcome John Binkley to the Board," said Chair Jason Brune. "As a lifelong Alaskan and dedicated public servant, John brings a wealth of experience to the Board. We look forward to his contributions and the work we will accomplish together."

Partnership and Accountability

The 34th Alaska State Legislature's presiding officers, Senate President Gary Stevens and Speaker of the House Bryce Edgmon, shared their insights on the vital partnership between the Legislature and APFC in the stewardship of the Fund. They emphasized the Fund's importance in providing a stable revenue stream for the state and expressed building alignment for the recommendations to pursue a constitutional amendment that would establish a single account endowment with a draw limit for the Permanent Fund, as outlined in Trustees’ Paper # 10.

Governance & Fiduciary Training

The Board underscored its commitment to strong governance by focusing on fiduciary training, a priority reinforced by Executive Director Deven Mitchell. “Strong governance is fundamental to APFC,” said Mitchell. “Our Board and staff are dedicated to the people of Alaska through regular governance training and fiduciary excellence to enhance our investment oversight, build corporate trust, and affirm our fiduciary commitment to our stakeholders.”

APFC’s Board of Trustees received its annual fiduciary training led by Tiffany Reeves, Partner with Faegre Drinker Biddle & Reath LLP. The session covered best practices in fiduciary decision-making, regulatory developments, and governance structures to effectively support investment funds.

Performance

As of December 2024, APFC outperformed its performance benchmark over the 5-year period with a return of 7.88% against the benchmark of 7.42% and over a 10-year period with a return of 8.10% against the performance benchmark of 7.19%. The Fund narrowly missed its FYTD and 3-year benchmarks. Discussions reinforced APFC’s diligent focus on long-term diversification, disciplined risk management, and alignment with the Fund’s objectives despite challenging market conditions.

“APFC’s investment strategy is built for long-term success, and our disciplined approach continues to add value over time," said Jim Parise, Deputy CIO – Public Markets and Director of Fixed Income. "While short term fluctuations reflect broader market trends—including the concentration of returns in a small group of U.S. tech stocks—our diversified portfolio remains well-positioned.”

Real Estate: Asset Class Overview

The Real Estate team shared findings from a strategic review of the portfolio, assessing investment strategy, operational priorities, and market dynamics. Despite recent underperformance, strategic additions to debt investments, industrial assets, and opportunistic funds have driven 3-year returns above benchmarks. “We are proactively strengthening our Real Estate portfolio by focusing on where we can add the most value – strategy, deal execution, and portfolio management – rather than asset-level operating decisions,” said Allen Waldrop, Deputy CIO of Private Markets. “We are refining our approach, leveraging expertise, and using data-driven insights.”

Callan – Fund Performance & Annual Asset Allocation Study

Callan, APFC’s investment consultant, provided a comprehensive third-party review of the Fund’s performance and an overview of market conditions and benchmark performance. Callan also presented an overarching analysis and robust discussion on the Fund’s optimal asset allocation. While the Board did not take any action, they received further education ahead of the May Meeting, where they will conduct their annual review of the upcoming FY26 target asset allocation.

Risk and Compliance

APFC Chief Risk and Compliance Officer Sebastian Vadakumcherry provided an update on the Fund’s main risk measures, as well as geographic, currency, and liquidity risks. He reported that the Fund’s exposures continue to remain within APFC’s stated risk tolerance levels and summarized positive compliance monitoring activity as of December 31, 2024.

Alaska’s Renewable Revenue Curriculum

Underscoring its commitment to educating Alaskans, APFC and Alaska Resource Education (ARE) provided an update on The Permanent Fund: Alaska’s Renewable Revenue, a curriculum with engaging lessons and ready-to-go activity kits for Alaska’s educators to teach students about the Alaska Permanent Fund. Teachers throughout Alaska are encouraged to contact us to access the curriculum, which is aligned with state standards and suitable for middle school and high school students.

Surety Bonds

Following guidance from the Alaska Attorney General’s Office, the Board concurred that AS 39.05.050 does not require the corporation to obtain surety bonds and voted to remove the related Bylaw.

Incentive Compensation & PMP Update

The Board voted to approve an amendment to the Personnel Management Program (PMP), following an update from Shannon McCain, Human Resources Director, on Incentive Compensation. While no substantive changes were made, the update clarifies what it means to be in good standing to ensure transparency.

The next meeting of the Board of Trustees will be on May 27-28, 2025, in Sitka, AK and virtually.

About APFC

The Alaska Permanent Fund Corporation (APFC) manages the assets of the Alaska Permanent Fund, a globally recognized sovereign wealth fund. Established in 1976, the Fund preserves Alaska’s nonrenewable mineral and oil wealth as a renewable financial resource for current and future generations of Alaskans. The Fund also serves as the primary source of revenue for Alaska's unrestricted general funds, supporting the state's economic stability and prosperity.

APFC is a quasi-independent state agency with one mission: to manage and invest the assets of the Alaska Permanent Fund and other funds designated by law. The Alaska Permanent Fund is the largest sovereign wealth fund in the U.S., with $80.5 billion in assets as of the end of FY24. For more information, visit apfc.org or click here to read the recently released Mid Fiscal Year Review.

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