Alaska Permanent Fund Corporation
|United States – Alaska||US$ 49.5 Billion|
Transparency Rating: 10
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Firm Investment Style: Mixed
Entity Structure: Corporation
Pop Est.: 731,449 – 2012 Alaska
Wealth Per Capita Est.: $67,674
In 1976, Alaska voters, by a 2-to-1 margin, approved a constitutional amendment that authorized the Alaska Legislature to create the Alaska Permanent Fund. The Alaska Permanent Fund is a constitutionally established fund, managed by a semi-independent corporation, established by Alaska in 1976. Shortly after the oil from Alaska’s North Slope began flowing to market through the Trans-Alaska Pipeline System, the Permanent Fund was created by an amendment to the constitution of the U.S. state of Alaska to be an investment for at least 25% of proceeds from some minerals such as oil and gassale or royalties.
The Alaska Permanent Fund Corporation manages the assets of both the Permanent Fund and other state investments, but spending Fund income is up to the Legislature. The APFC is to manage for maximum prudent return, and not–as some Alaskans at first wanted–as a development bank for in-state projects. The Fund started from an initial investment of $734,000 in 1977. Some growth was due to good management, some to inflationary re-investment, and some via legislative decisions to deposit extra income during boom years. Each year, the fund’s realized earnings are split between inflation-proofing, operating expenses, and the annual Permanent Fund Dividend.
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