The Alaska Permanent Fund, a significant financial resource for the state, marks its 50th anniversary this year. Established in 1976, the Fund was created through an amendment to the Alaska Constitution, which set aside a portion of oil and mineral revenues for future generations. This visionary decision has shaped Alaska’s economic landscape, particularly as oil revenues have begun to decline.
As of now, the value of the Permanent Fund exceeds $85 billion, making it one of the most successful sovereign wealth funds globally. Its continued growth underscores the foresight of Alaskans, who opted to invest their natural resource wealth rather than spend it immediately. The Fund now plays a critical role in supporting essential public services, accounting for over 60% of the state’s unrestricted general fund.
The Fund’s structure is built on discipline. A portion of all oil and mineral revenues is deposited into the Fund, alongside special appropriations aimed at inflation-proofing. These funds are then invested globally, generating income that supports both state services and the annual Permanent Fund Dividend (PFD) for residents. The withdrawals are managed through a Percent of Market Value draw based on a five-year rolling average, ensuring that the majority of the Fund remains invested for future generations.
According to the Alaska Permanent Fund Corporation (APFC), the Fund earned more than $7.8 billion by the end of the fiscal year 2025, reflecting a 9.35% return for that year alone. Over the past decade, the annualized return has been 8.08%, outperforming both its benchmark and total return objectives. These results are attributed to a diversified investment strategy that includes various asset classes such as public equities, fixed income, private equity, real estate, and absolute return funds.
The APFC, led by Chair Jason Brune and Vice Chair Ethan Schutt, emphasizes the importance of continued stewardship as the Fund enters its next phase. They acknowledge that strong governance, transparency, and public trust are essential as the Fund adapts to the changing economic landscape of Alaska.
As Alaska reflects on the accomplishments of the past fifty years, the Alaska Permanent Fund serves as a powerful example of effective long-term financial planning. It illustrates what can be achieved when a state prioritizes sustainable investment over immediate gratification. The legacy of the Fund is not just about past successes; it is also a commitment to ensuring that future generations of Alaskans will benefit from the prudent management of their natural resources.
In celebrating this milestone, Alaskans are reminded of the importance of maintaining the principles that led to the Fund’s creation. As the Board of Trustees and management team continue their work, they are dedicated to ensuring that the Fund remains robust and sustainable, ready to support the needs of Alaskans for decades to come.
