National, global economic turmoil sock Permanent Fund

JUNEAU — A fund established decades ago to share Alaska's oil wealth with future generations lost $3.1 billion during the first quarter of the fiscal year.

The Alaska Permanent Fund Corp. cites continued slow growth in the U.S. economy and political and economic difficulties abroad for the 8.3 percent decline. The Alaska Permanent Fund ended the quarter with $37 billion.

The corporation has stressed that it takes a long-term approach to investing and isn't reactive. CEO Michael Burns said the board has built a diversified portfolio that has worked the way it's supposed to.

He said stocks were up by 30 percent for the last fiscal year while most other portfolios returned less. He said the situation has reversed, with bond and real return portfolios performing positively or showing much smaller losses.

 

Updated: 
11/03/2011 - 10:11am