The Alaska Permanent Fund returned 4.6% in the first quarter of Fiscal Year 2013 according to figures released today, against its benchmark return of 4.7%. The Fund ended on September 30 with a value of $42.3 billion, a gain of $2.0 billion over Fiscal Year 2012.
Permanent Fund Cooperation CEO Michael J. Burns credited actions by the central banks at home and overseas that helped spur increases in global stock markets, even though many of the world’s regions are in an economic slump, and after the stock market losses of 2012, this rally is a welcome change as all asset classes for the Permanent Fund had positive returns this quarter, leading to a solid start to the fiscal year.
The Fund’s U.S. stocks returned 6.2%, while the non-U.S. and global portfolios gained 7.5% and 7.0% respectively. Stocks make up about half of the Fund’s $42 billion value so they have a strong impact on the Fund’s total return. The Fund’s bond and real estate portfolios also had positive returns for the period. The U.S. bond portfolio gained 2.4% while the non-U.S. investments returned 1.9%. Real estate holdings, both directly owned and real estate investment trusts, provided a composite return of 1.5%.
Alternative investments provide balance to the Fund’s other holdings, and often are out of sync with each other in performance. But in the first quarter of Fiscal Year 2013 all of the alternative asset portfolios had positive returns. Private equity returned 1.2% while the Fund’s absolute return portfolio gained 2.2%. Infrastructure returned 1.0% and the real return funds gained 5.0% for the period ending September 30.
The Corporation recorded $629 million in statutory net income for the Permanent Fund for the first quarter of the fiscal year. Statutory net income is the amount used to calculate the annual Permanent Fund Dividend.