Alaska Permanent Fund

The Alaska Permanent Fund is a public investment fund established by the State of Alaska to convert part of the revenue from oil and other nonrenewable resources into long-term financial assets. Its purpose is to preserve a portion of resource wealth so that it can continue generating economic benefits after resource revenues decline. The fund is managed by the Alaska Permanent Fund Corporation, a statutory entity that invests on behalf of the state. Its portfolio has included asset classes such as public equities, fixed income, real estate, infrastructure and private equity, although its allocation changes according to investment policy and market conditions. The Alaska Permanent Fund is closely associated with Alaska’s Permanent Fund Dividend, but the two are not the same institution. The dividend is paid to eligible Alaska residents under a state-administered program, while the fund itself is responsible for the long-term investment and management of the underlying assets. The fund therefore serves as a vehicle for resource-revenue saving, intergenerational wealth management and support for Alaska’s public finances.

The Alaska Permanent Fund emerged from Alaska’s desire to preserve part of the revenue generated by oil development rather than spend all of it in the current fiscal period. In 1976, Alaska adopted a constitutional amendment establishing the Permanent Fund and providing a constitutional basis for depositing resource revenues into it. The state subsequently created the Alaska Permanent Fund Corporation to manage the fund’s investments. Its long-term design emphasizes preserving the principal while seeking investment growth, thereby converting nonrenewable resource income into durable financial assets. As the fund expanded, its investment universe moved beyond traditional financial assets to include areas such as real estate, infrastructure and private equity. The fund is also closely connected in public policy terms with Alaska’s Permanent Fund Dividend. However, the dividend program’s eligibility administration and payments are not performed solely by the fund corporation. The Alaska Permanent Fund remains one of Alaska’s most important public assets, with management focused on long-term returns, risk control, liquidity, governance and the public interest of the state.

• 1976

  Alaska constitutional amendment establishes permanent fund

  Alaska passed a constitutional amendment establishing the legal basis for depositing a portion of resource revenues into a permanent fund and managing them long-term.

State-owned long-term public wealth fund, positioned around capitalization of resource revenues and intergenerational wealth preservation.

• Public investment fund · 1976

  Alaska Permanent Fund

  A public fund owned by the State of Alaska and invested for the long term. It is intended to convert part of oil and other nonrenewable-resource revenues into diversified financial assets, preserve public wealth for future generations and provide an asset base for public-benefit arrangements.