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Alaska Permanent Fund Board approves use of bond futures


DEC 8 - The Alaska Permanent Fund Corporation Board of Trustees authorized the internal bond staff to add futures to the Fund’s investments at its regular meeting in Anchorage on Wednesday and Thursday.

“Adding beneficial long investments to our bond portfolio can create an unintended directional tilt with regard to duration or curve,” said Bill Moran, Board Chair. “The use of futures will allow us to return balance to the portfolio and lessen any interest rate risk with regard to its benchmark.”

The Board also heard the following presentations during the meeting:

  • Staff from PIMCO reviewed the real return mandate that they manage for the Fund, and discussed the firm’s approach to investing.
  • Gary Robertson of the Board’s general consultant, Callan Associates, reviewed the Fund’s private equity portfolio.
  • Greg Allen of Callan Associates provided an overview of the risk parity approach to asset allocation.
  • Michael O’Leary of Callan Associates reviewed the performance of the Fund’s investments for the first quarter of the fiscal year.

The Board’s next regular meeting is scheduled for February 22 and 23 in Juneau.

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