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Permanent Fund is off to a roaring start this fiscal year

Alaska Dispatch

Slipping a bit from its blazing start to Fiscal Year 2013, Alaska’s Permanent Fund earned 2.7 percent during the second quarter, according to the corporation, boosting its year-to-date return to 7.3 percent.

The first quarter saw a 4.6 percent return.  As of Wednesday, the fund’s market value was $44.6 billion. In the last quarter, it grew $2.3 billion.

“Last fiscal year, non-U.S. markets were down and caused a strong drag on the fund’s performance, but the easing of concerns over the European debt crisis and China’s economy have caused those markets to turn around,” Michael Burns, the fund’s CEO, said in a press release. “U.S. markets struggled a little more in the last quarter, with uncertainty regarding the election and the response to the fiscal cliff.”

The fund is invested in a diversified portfolio of public and private assets worldwide.

Halfway through its year, the non-U.S. portion of the fund’s portfolio is leading the way, delivering a 13.7 percent return.  Bonds and real estate had much lower returns, but both were in positive terrain.

The Fund recorded $364 million in statutory net income for the quarter, bringing the year-to-date total to $1.3 billion. This is the amount used to calculate the annual permanent fund dividend.

Get the details here