Alaska Permanent Fund improves after money-losing year but withdrawals still exceed earnings

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The corporation’s earnings need to average 5% plus the rate of inflation to be sustainable; over the past five years, the corporation hasn’t done that.

The Alaska Permanent Fund Corp.’s investment earnings were again less than withdrawals in the 12 months ending in June, according toscheduled to be released at the corporation’s annual meeting this week in Anchorage.

To make that transfer sustainable in the long term, investment managers need to average 5% plus the rate of inflation. From Jan. 1 through June 30, the S&P 500 index was up 16.9%, but just 10 stocks, including Apple, Amazon, Microsoft, Nvidia, Tesla and Google, accounted for 80% of those returns. Nationwide, state and local government pension funds reported a median return of 8.3%, according to a Wilshire Trust Universe Comparison ServiceIn addition to discussing investment returns and strategic planning, this week’s annual meeting will include the APFC’s annual budget proposal, which includes more than $750,000 to establish a permanent office in Anchorage.

 

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