The Alaska Permanent Fund Corp. reported a $1.5 billion loss during the market plunges that sent shock waves from Wall Street to Alaska last Friday and Monday.

Still, the 2.2 percent dip is less than half of the 6 percent decline felt throughout U.S. markets.

“The Alaska Permanent Fund experienced less than half of that percentage decline due to its diversified approach to investing-- which includes fixed-income, real estate, infrastructure, absolute return, multi-strategy and private equity investments,” the agency said in a prepared statement.

“In fact, most of the Permanent Fund portfolio is invested in these diversifying asset classes so that the fund is generally less exposed to short-term gyrations in stock markets than most public plans across America and internationally.” 

Stocks make up nearly half of the fund’s portfolio. Even with those losses, the fund reported modest gains since the beginning of the year.

The fund reported slightly more than $64 billion in assets Dec. 31, 2017.

This year, the fund’s overall value rose more than $400 million through Monday’s close.

“The Board of Trustees has structured a well-diversified portfolio for the Alaska Permanent Fund with a mix of both public and private assets to mitigate market volatility over a long-term investment horizon,” the agency said.

Other state investments get handled by the Department of Revenue, whose commissioner says the state expects some market volatility.

“Not only was there no panic,” said Revenue Commissioner Sheldon Fisher, “I don’t think there is a huge amount of surprise that there might be some fluctuations. This fluctuation is kind of in the realm of what might be expected in various market conditions.”

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