Permanent Fund reports almost 11% annual boost
The Alaska Permanent Fund Corp. on Monday reported nearly an 11 percent annual return for the fiscal year that ended June 30.
The fund’s unaudited value through the June 30 stood at $64.9 billion. That represents a $5.1 billion year-to-year boost, according to the corporation’s release.
According to the corporation’s website, the fund’s value through Thursday was approaching $66 billion, representing almost a $1 billion increase this month.
This will be the first year that Alaska uses Permanent Fund earnings to help pay for government operations. The state will receive about $2.7 billion for the current fiscal year that began July 1.
In May, the Legislature approved a bill that uses 5.25 percent of the fund’s average value over the past five years. This rate would remain in place for three years. Afterward, the percentage falls to 5 percent.
The bill does not affect this year’s $1600 dividend the Senate and House agreed upon. Nor does it redefine how future dividend payouts get calculated.
In a prepared statement, Permanent Fund Corp. Chief Executive Angela Rodell said, “Alaskans can be proud of the performance and investment returns that APFC is generating for our State. As Alaska begins a program of relying on the Fund in new ways, APFC’s ability to add value and secure compelling investment opportunities while diversifying and controlling risks has never been more important.”
The fund’s largest holdings are with stocks ($29.5 billion) and bonds ($11.9 billion).
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