Boom on Wall Street brings big returns for Alaska’s Permanent Fund
The Nasdaq and the S&P 500 have hit record highs on Wall Street -- and that's good news for Alaska. The state's Permanent Fund is also seeing tremendous gains.
Two weeks ago, the Fund hit a milestone at $60 billion and it's already grown almost a billion dollars more since.
The Alaska Permanent Fund Corporation's CEO, Angela Rodell, says the numbers are extraordinary.
About 40 percent of the Permanent Fund's investments are in public equities. Rodell credits the boom in that market -- as well as an increase in her trading staff -- for the spike in returns.
While it's good news now, Rodell says she's still cautiously optimistic.
"This feels extraordinary, it's stunning to me," Rodell said in a phone interview Wednesday. "And it's wonderful for all of us here in Alaska, but it feels very extraordinary in that, I want to be cautious about how much further this can continue. We know that markets go up, markets go down, and at some point, we expect that this too will go down, and our goal is to make sure that we continue to have a diversified portfolio."
It's been a good year for the fund overall.
In the last 13 months, it grew more than $7 billion. Just in the last month, it gained $1 billion more. On Wednesday, the Fund's total value was $60.8 billion.
By labor day, the Permanent Fund Corporation expects to have more in-depth data on its performance.