Permanent Fund Up 7% for First Half of Fiscal Year
The Alaska Permanent Fund returned 2.7% for the second quarter of fiscal year 2013 according to unaudited figures released today by the Corporation, ending on December 31 with a value of $43.7 billion. The Fund’s year-to-date return is 7.3%.
Non-U.S. stocks were the largest contributor to the Fund’s performance for the quarter and for the fiscal year-to-date. The Fund’s non-U.S. portfolio returned 5.8% for the quarter and 13.7% for the first six months of the fiscal year, while the global portfolio returned 3.7% and 11.0% for the respective periods. By comparison, the U.S. portfolio returned 0.7% for the quarter and 7.0% for the fiscal year-to-date.
“Last fiscal year, non-U.S. markets were down and caused a strong drag on the Fund’s performance, but the easing of concerns over the European debt crisis and China’s economy have caused those markets to turn around,” said Michael Burns, CEO. “U.S. markets struggled a little more in the last quarter, with uncertainty regarding the election and the response to the fiscal cliff.”
The Fund’s bond and real estate portfolios produced positive returns for both the quarter and the fiscal year-to-date. The U.S. bond portfolio returned 0.9% and 3.3% for the respective periods, while the non-U.S. portfolio returned 1% and 2.9%. The Fund’s real estate portfolio was up 1.8% for the quarter and 3.8% for the fiscal year-to-date.
Alternative investments were strong performers, helping boost the total return. The Fund’s private equity investments returned 3.9% for the quarter and 5.1% for the fiscal year-to-date, and the absolute return portfolios were up 1.5% and 3.9% for the respective periods. Infrastructure investments returned 7.3% and 8.4%, while the real return program was up 2.1% for the quarter and 7.2% for the fiscal year-to-date.
The Fund recorded $364 million in statutory net income for the quarter, bringing the year-to-date total to $1.3 billion. This is the amount used to calculate the annual permanent fund dividend.