Alaska Permanent Fund Designed for Sustainability

Alaska Permanent Fund
Designed for Sustainability
11
1969: The boom begins
Alaska receives
$900 million in
Prudhoe lease
sale bonuses
FY70 state
budget: $173
million
22
1976 voters guide
“Alaska’s state government [should] set aside a rainy day
fund to benefit this and future generations of
Alaskans.”
Alaska State Chamber of Commerce
33
The Fund’s purpose:
Development bank
or
Investment fund
44
APFC and state government
Governor
Department of Revenue
Alaska Permanent
Fund Corporation
Board of Trustees
Commissioner of Revenue
State
Treasury
Permanent
Fund Dividend
Division
55
Asset allocation over time
1985
1995
2005
Domestic
bonds,
stocks and
real estate
Non-U.S.
bonds and
stocks
Absolute
return and
private
equity
66
2015 target allocation
Other
16%
Absolute return
6%
Bonds and cash
20%
Infrastructure 4%
Private equity
6%
Real estate
12%
Stocks
36%
77
88
Tysons Corner Center
Washington, DC
Partner: Macerich
2 million square feet developed
1.4 million square feet entitled
Apartment, office, hotel
Train access to DC and Dulles
$1.3 billion total property value
99
Non-U.S. real estate
Golden Square
Shopping Centre
Warrington, UK
Zenia Boulevard
Shopping Centre
Alicante, Spain
10
10
Recent initiatives
Co-investments in private
equity andAsia
infrastructure
9%
Direct investments
in
Europe
private15%
companies
U.S.
67%
Direct investments in
specialized funds
11
11
Infrastructure holdings
$1.5 billion as of 06/30/2015
3 managers invest in pooled
funds
Energy
55%
Transportation
35%
In-house co-investments
Properties in the U.S., U.K.,
India, Argentina and Canada
Communications
2%
Water & waste
Management
8%
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12
Infrastructure holdings
Transportation
47%
Energy
37%
13
13
Direct equity investments
14
14
Private equity funds
15
15
$52.8 billion as of 06/30/2015
Earnings Reserve
$7.1 billion
$44.6 billion
Principal
$45.6 billion
16
16
Dividend program
• Calculation based on realized (cash)
income averaged over five years
• Residents must spend majority of year
in-state to qualify
17
17
Dividend calculation
Fiscal Year
Statutory net income
2011
$2.1 billion
2012
$1.6 billion
2013
$2.9 billion
2014
$3.5 billion
2015
$2.9 billion
Sum
$13.0 billion
18
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Dividend calculation
$13.0 billion x .21%
$2.7 billion divided in half
Send $1.4 billion to PFDD
After adjustments, divide by 644,511
2015 individual PFDD = $2,072
19
19
A renewable resource
$18.7
billion
$23.0
billion
$51
billion
deposited
in Fund to
date
dividends
paid to date
current
value
20
20
Permanent Fund earnings
vs. State Petroleum Revenue
$7.0
Permanent Fund
$6.0
billions
$5.0
State of Alaska
$4.0
$3.0
$2.0
$44.6 billion
$1.0
$FY2014
FY2015
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