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Alaska Permanent Fund grew by more than $6B in fiscal year

August 2, 2018

ANCHORAGE, Alaska (AP) — The Alaska Permanent Fund grew by $6.3 billion during the state’s 2018 fiscal year, reaching a value of nearly $65 billion.

Strong market returns have bolstered the fund in recent years, giving it gains of more than 12 percent in 2017 and nearly 11 percent during the fiscal year that ended in June, the Alaska Journal of Commerce reported Wednesday.

The fund ended the fiscal year with $46.1 billion in principal and $16.4 billion of net income in its Earnings Reserve Account, which also held $2.4 billion in unrealized gains, according to Alaska Permanent Fund Corp.

The fund’s five-year return is at 8.9 percent, which is above the corporation’s passive benchmark return goal of 6.8 percent and above the return objective of 6.5 percent of the corporation’s board.

Corporation CEO Angela Rodell said Alaska residents should take pride in the returns the corporation is gaining for the fund.

“As the state begins a program of relying on the Fund in new ways, APFC’s ability to add value and secure compelling investment opportunities while diversifying and controlling risks has never been more important,” Rodell said in a statement.

The state will withdraw 5.25 percent of market value on the fund’s Earnings Reserve Account to pay down budget deficits and pay dividends. The amount approved by the state Legislature earlier this year will be about $2.7 billion. About $1 billion will pay dividends of $1,600 per eligible resident, and the remainder will be directed for the state budget.

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Information from: (Anchorage) Alaska Journal of Commerce, http://www.alaskajournal.com

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