Bulletin 5/6/12

Permanent Fund shows strong third quarter

The Alaska Permanent Fund returned 6.9 percent for the third quarter of fiscal year 2012, reclaiming ground lost last fall and bringing the year-to-date return to 1.9 percent. The Fund ended March with a value of $41.5 billion, the highest month-end closing value in its history. The Fund’s U.S. stock portfolio returned 13.3 percent for the quarter, while the non-U.S. and global portfolios returned 11.9 percent and 11.5 percent respectively. Private equity investments returned 4.5 percent for the quarter, bringing the year-to-date returns to 4.7 percent. The real return program showed similar results with 4.3 percent and 5.6 percent for the respective periods. The absolute return funds’ recent performance returned 2.9 percent for the quarter but was flat for the fiscal year-to-date. Infrastructure was also flat for both the quarter and the fiscal year-to-date. The Permanent Fund’s investments produced $485 million in statutory net income for the quarter, bringing the year-to-date total to $1.3 billion.

APFC adds investments

The Alaska Permanent Fund Corp. Board of Trustees approved additions to current investments and changes to its Investment Policy at a special board meeting on April 23. The Board approved the construction of new office, residential and hotel space at property it owns at Tysons Corner Center outside Washington, D.C. In a shift within the $980 million absolute return mandate managed by Mariner Investment Group, the Board reallocated up to $500 million to a fund that will focus on new securities management firms with experienced investment professionals and attractive strategies. Mariner will identify promising firms and take them through two stages of evaluation over several years. The Board also approved a change to APFC’s Investment Policy, clarifying that concentration tests applied to absolute return managers will apply at the time of investment. The next regular Board of Trustees meeting will be held in Anchorage May 22 through May 24.

DOWL HKM celebrates 50 years

DOWL HKM is celebrating its half-century mark and is holding an open house at their office at 4041 B Street in Anchorage to commemorate the event on May 3 from 4 p.m. to 8 p.m., All three of DOWL HKM’s presidents: Lew Dickinson, Mel Nichols and current president Stewart Osgood, will be in attendance. DOWL HKM started in Anchorage in 1962 and has grown to 18 offices in 6 western states. The Alaska Native-owned company provides civil, transportation and structural engineering as well as environmental services, land use, transportation planning, geotechnical engineering, water resources planning and design, materials testing, special inspections, landscape architecture and real estate services. NANA Development Corp. owns 51 percent of the company.