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ANCHORAGE, ALASKA-The numbers are in for the 2012 First Quarter returns for the Alaska Permanent Fund. The numbers there reflect the current market trends. The continued slow growth of the U.S. economy, as well as economies globally have had an effect on Fund returns. The fund's investment value fell to $37.0 Billion, this is a reduction of $3.1 Billion from the beginning of the quarter.
The Permanent Fund returns ran in negative territory at -8.3% for the quarter. Responsible for the poor numbers were a return of -19.8% in Non-U.S. stocks, a return of -16.4% on U.S. stock portfolios, and a return of -16.2% in global portfolios.
In contrast, both U.S. Bonds as well as non-U.S. Bonds helped bring the return average up with returns of 1.8% and 3.3% respectively. Real Estate returns didn’t help or hinder the average much at -.5%.
Michael Burns, Chief Executive Officer of the Alaska Permanent Fund Corporation said, “Three months ago, when we reported that the fund had returned more than 20% for the fiscal year, my enthusiasm was tempered because bull markets don’t last forever,” He went on to say further, “Our Board builds an all weather portfolio that doesn’t change to reflect market conditions. We didn’t chase returns last year, and we won’t take a reactive approach this fall.”
Explaining how all-weather portfolios work, he had this to say,“Stocks were up by 30% for the last fiscal year while most of the other portfolios returned less, even much less than that. But now that the situation has reversed, our bond and real return portfolios are providing a balance with either positive performance or significantly smaller losses.”
The statutory net income was recorded at $468 Million. This number will be used to calculate the dividend.