Infrastructure a loser for Alaska fund

The $45bn Alaska Permanent Fund recorded a third quarter loss of 1% for its infrastructure portfolio. 

Infrastructure eked out a disappointing 1 percent loss for the Alaska Permanent Fund in the third quarter (Q3) of fiscal year 2013, though the asset class did gain 7.4 percent for the fund year-to-date (YTD), the sovereign wealth fund announced yesterday.

The Alaska Permanent Fund Corporation (APFC) said the fund did earn 3.9 percent in Q3, bolstered by its “US, non-US and global” stock portfolio. Net income accrued $963 million in Q3 and $2.3 billion YTD.

In January APFC, administrator to the $45 billion Permanent Fund, said infrastructure returned 8.4 percent for the first half of fiscal 2013, with the fund overall returning 7.3 percent. June 30 is the end fiscal year for the Corporation.

In 2012, infrastructure turned in a less-then-stellar performance for the APFC, posting a 0.02 percent gain.

Alaska Permanent Fund has 4 percent of its capital devoted to infrastructure. The fund is invested with Citi Infrastructure Investors, Goldman Sachs Infrastructure Partners and Global Infrastructure Partners.

The organization, manager to a sovereign wealth fund created to invest revenue generated from the Trans-Alaska Pipeline System, began allocating to the asset class in 2007.

In December, APFC installed Marcus Frampton as head of co-investment. Frampton had worked for LPL Financial.