Alaska fund posts 12.9% infra return

The Alaska Permanent Fund Corp reported a 15.5% return for the fiscal year 2014, with its infrastructure portfolio achieving 12.9%.

The Alaska Permanent Fund Corp (APFC) reported a 15.5 percent return for the fiscal year (FY) 2014, with its infrastructure portfolio producing a 12.9 percent return, according to a statement.

This brought the Permanent Fund to a value of $51.2 billion at the end of FY2014, an increase of $6.3 billion from a year earlier, marking the first time for the fund has exceeded $50 billion in value, the statement said.

Strong returns were achieved in the fund’s private asset portfolios, with the private equity portfolio up 24.3 percent.

About $400 million worth of allocations have recently been added to APFC’s infrastructure portfolio, with up to $200 million of the $400 million set aside for co-investment, the APFC said in a statement.

The biggest factor in the the fund’s overall return was its $21.0 billion stock portfolio, with US and overseas stocks producing double-digit gains for the period, it said.

The US portfolio had positive performance in all four quarters, and returned 27.0 percent for the fiscal year.

The fund’s non-U.S. portfolio registered a 20.2 percent return, while its global portfolio was up 25 percent, it said.

The fund’s US bond portfolio gained 4.8 percent for FY2014, and its non-US bond portfolio gained 5.5 percent during the same period of time. Global monetary policy saw government bond yields pushed down, with investors seeking out high-yield junk bonds instead. 

Real estate performed reasonably well, recording a fourth consecutive year of positive performance – the $5.9 billion real estate portfolio gained 12.7 percent for FY14, the statement said.

The fund’s absolute return portfolio was up 5.3 percent for the fiscal year, while real return strategies produced returns of 11.3 percent, it added.