Alaska fund posts 8.4% infra loss

Alaska Permanent Fund Corporation lost an annual 8.4% on its infrastructure allocation. The bulk of the $40bn organisation's allocation is invested with Citi Infrastructure Investors, Goldman Sachs Infrastructure Partners and Global Infrastructure Partners.

Infrastructure played a negative role as the Alaska Permanent Fund Corporation (APFC) turned in a less-than-stellar 2012. It showed an 8.4 percent loss as APFC posted a mere 0.02 percent gain overall, the state-owned fund said in a preliminary results statement for fiscal year 2012.

Only international equity, tanking in the face of unprecedented economic upheaval in Europe, fared worse – plummeting 14.6 percent and leading chief executive Michael Burns to heap blame on stock market underperformance.

APFC's fiscal period closed on June 30. A spokeswoman for the firm did not return a voicemail message.

APFC currently has some $1.6 billion, about 4 percent of its total capital, invested in infrastructure, according to its website. 
In its 2011 annual report, the fund said it was invested in Citi Infrastructure Investors (CII), a $3.4 billion infrastructure fund, Goldman Sachs Infrastructure Partners II (GSIP II), the investment bank’s $3.1 billion second infrastructure fund, and Global Infrastructure Partners’ first, $5.64 billion infrastructure vehicle.

The fund also said last year that it was earmarking an extra $400 million to add to its infrastructure bucket in fiscal year 2012, adding that it might commit to to other fund managers on top of the above-mentioned three.
CII, co-headed by Felicity Gates and Holy Koeppel, is a participating member in the Chicago Infrastructure Trust (CIT). As for GSIP II, it has just won the coveted Puerto Rico Highway 22 toll road concession, together with Spain’s Abertis.

GIP, meanwhile, recently revealed its second fund offering – Global Infrastructure Partners II (GIP II) – has managed to raise $7.5 billion, already making it the largest fund the asset class has ever witnessed, although its fundraising has not yet ended.

Spokespeople for Citi, Goldman and GIP declined comment. Infrastructure Investor could not confirm the individual performance of each fund.

APFC is manager to $40 billion. The organisation manages the Alaska Permanent Fund, a sovereign wealth fund created to invest revenue generated from the Trans-Alaska Pipeline System.

The organisation began investing in infrastructure in 2007. By 2011, APFC had allocated $500 million to CII and GSIP apiece, while funnelling $350 million to GIP, and had decided to raise its infrastructure allocation from 3 percent to 4 percent.