Board of Trustees Prepares for Annual Asset Allocation Review in Special Meeting
April 23 2024 - 6:00AM
Business Wire
The Board of Trustees of the Alaska Permanent Fund Corporation
(APFC) held a special meeting focused on asset allocation and
private markets investments via webinar on April 22, 2024. The
meeting featured in-depth presentations from its partners at AQR
Capital Management, Pathway Capital Management, and Callan.
Additionally, APFC staff provided an update on legislation and the
funding status of APFC’s FY25 budget priorities to support
professional talent and recruitment opportunities.
The Trustees held this education session to hear from trusted
partners on the private markets landscape and its role within the
Fund’s portfolio. This serves as critical context for the planned
asset allocation discussion during the May quarterly meeting. The
Board is committed to ensuring the Fund’s investments are well
diversified and can provide a compelling long-term risk-adjusted
return under various market conditions for the benefit of
Alaskans.
AQR Capital Management assessed capital markets and
implications for asset allocation. Evidence suggests that
private credit and private equity have similar risk-adjusted
returns compared with their public counterparts. The AQR team
recommends that APFC consider increasing diversifiers such as hedge
funds and inflation-sensitive assets to improve total risk-adjusted
returns.
“Such deeply researched market perspectives are an important
part of educating the Board and providing APFC with timely,
actionable information to make sound investment decisions,” said
Marcus Frampton, APFC's Chief Investment Officer.
Pathway Capital Management presented a private markets
review. Pathway provided that APFC’s private equity performance
compares favorably with peers and other asset classes, generating
net gains of $14.9 billion since inception ($10 billion more than
if APFC had invested in the public benchmark equivalent). Pathway
highlighted the unique characteristics of private credit and
infrastructure, recognizing that APFC’s portfolios have
outperformed since inception.
“As the Pathway team noted, with the depth and breadth of our
private markets program, APFC continues to be a sought-after
investment partner,” said Allen Waldrop, APFC Director of Private
Equity.
Callan provided their analysis on performance, projections,
and allocations should APFC increase the Fund’s exposure to private
equity. Callan shared backward-looking historical data to
illustrate how those asset allocation decisions would have
performed in various market conditions over nearly 40 years, the
longest range in which comparable data is available.
The next meeting of the Board of Trustees will be the quarterly
meeting on May 29-30, 2024, in Utqiagvik, Alaska and via WebEx.
Meeting information can be found here.
About APFC APFC was created by the Alaska State
Legislature in 1980 as an independent state entity tasked with
managing the assets of the Alaska Permanent Fund on behalf of
current and future generations of Alaskans and other funds
designated by law.
The Alaska Permanent Fund is a globally recognized sovereign
wealth fund established in 1976 by Alaskans to preserve and convert
the State's non-renewable mineral and oil wealth into a renewable
financial resource for generations of Alaskans.
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version on businesswire.com: https://www.businesswire.com/news/home/20240423954639/en/
Paulyn Swanson 907.796.1520 – pswanson@apfc.org Maggie
Duffy 617.686.5705 – Maggie.Duffy@BackBayCommunications.com