Rough stock market hurts permanent fund

    Anchorage, Alaska (KINY) A new report suggests strong returns for Alaska's Permanent fund over the first half of the 2018 fiscal year.

    The Alaska Journal of Commerce also found the fund, along with many others, have been impacted by the Dow Jones Industrial Avenue closing down over 7 percent in the past week.

    The report said the Alaska Permanent Fund Corp. had a total value of over $64 billion.  The returns this year at 8.45 percent.

    The public equities portion of the fund's investments produced an 11.9 percent return and outperformed the corporation's investment benchmark between July 1, 2017, and Jan. 1.

    CEO Angela Rodell said she was particularly "pleased to see the quality and diversity of the portfolio's investment returns across all asset classes."

    The fund has more than doubled since 2009 when it was worth $29.9 billion

    The Permanent Fund principal is protected from being spent by the amendment to the Alaska Constitution that established the Fund. Spending from the Earnings Reserve, however, requires a simple majority vote from both bodies of the state Legislature.

    To date, the only spending from the Earnings Reserve has been to pay out annual Permanent Fund dividends to residents based on a percentage of the Fund's previous five-year performance.

    Gov. Bill Walker and House and Senate leaders have pushed to implement a percent of market value appropriation structure from the Earnings Reserve to pay down up to nearly $2 billion of the state's ongoing budget deficits in excess of $2.5 billion.

    The Fund's Board of Trustees has supported the proposed structure to provide stability for the Fund and its managers.


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