SitNews - Stories in the News - Ketchikan, Alaska


Alaska Permanent Fund returns 5.6% for second quarter


January 23, 2007

The Alaska Permanent Fund returned 5.6% for the second quarter of the fiscal year, according to unaudited figures released Monday. This brings the return for the fiscal year-to-date to 9.6%. The Fund grew by $2.1 billion in the quarter, ending December 31 with an unaudited value of $36.4 billion.


The stock rally that started mid-year continued through the second fiscal quarter, and the Fund's stock portfolios contributed the most to the total return. Non-domestic stocks were the strongest asset class in the Fund, returning 11.4%, and domestic stocks returned 6.9%.

According to an Alaska Permanent Fund Corporation news release, continued economic expansion brought better than expected growth in the European markets. When combined with strong returns from emerging markets, non-domestic stocks almost doubled the return on domestic stocks. A number of factors may have created the economic environment that allowed for the domestic side of the rally. The Federal Reserve held firm on short-term rates, and declining oil prices and a mild start to the winter may all have eased inflation fears.

Quoting the news release, "In this pleasant but unusual environment, all of the Fund's asset classes had positive returns for the quarter, including real estate, returning 4.2% for the period. Domestic and non-domestic bonds returned 1.3% and 1.2% respectively. Absolute return gained 4.7%."

The Fund has earned $1.9 billion in statutory net income in the first half of fiscal 2007. The Permanent Fund Dividend is calculated using an average of statutory net income over five years, and the value from fiscal 2002 that falls out of this year,s calculation is $257 million. As a result, at this time dividends are expected to be higher this fall.

The Fund's significant growth in the second fiscal quarter helped it reach a new milestone in January. The total unaudited value of the Permanent Fund grew past $37 billion for the first time on January 12.


Source of News:

Alaska Permanent Fund Corporation


E-mail your news & photos to

Publish A Letter on SitNews
        Read Letters/Opinions

Contact the Editor

SitNews ©2006
Stories In The News
Ketchikan, Alaska