Alaska Permanent sets alternatives pacing at $2.3 billion for next fiscal year

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Alaska Permanent Fund Corp., Juneau, plans to make commitments to alternative investment funds totaling $2.3 billion during fiscal year 2021 beginning July 1.

The $65.8 billion sovereign wealth fund’s board approved the pacing plan for the fiscal year ending June 30, 2021, at its board meeting Thursday, spokeswoman Paulyn Swanson said in an email.

APFC plans to commit a total of $1.6 billion to private equity and special opportunities funds, which includes the sovereign wealth fund’s in-state investment program, and $650 million to private income funds, which includes infrastructure and private credit funds.

As of March 31, the actual allocations to the private equity and special opportunities asset class, and the private income asset class were 12.9% and 8.1%, respectively.

Separately, the board appointed Kenneth J. Frier, principal, SECOR Asset Management, and John D. Skjervem, CEO of Alan Biller and Associates, to its investment advisory group.

The group, formed in 2001, currently has only one member: George Zinn, corporate vice president and treasurer of Microsoft Corp., Seattle.

The group traditionally has three members. Group members are expected to attend at least three of the sovereign wealth fund’s quarterly board meetings and advise the board on items including the long-term or strategic asset allocation of the fund, risk management framework, investment policy changes and any proposed investments in new asset classes.