The fiscal year of 2023 concluded with a total performance return of 5.18%. While positive returns were achieved, spendable income generated through investment activity was less than withdrawals from the Earnings Reserve Account . As a result, the spendable portion of the Permanent Fund is getting smaller.
The Fund’s current two-account structure is comprised of the principal, which isn’t spendable, and the ERA, which can be spent. This structure is based on a historical endowment model that only invested in bonds and only spent the interest income after adding to the principal to offset the impacts of inflation. The current asset allocation of the Fund is much more complex and has income that is only realized when an asset is sold.
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