The Alaska Permanent Fund (APF) is a state-owned investment fund established in 1976 to manage a portion of Alaska's oil and gas revenues for the benefit of current and future generations of Alaskans. The fund was created through a constitutional amendment passed by Alaska voters in 1976, which sought to address the challenges of managing the state's non-renewable resource wealth and to provide a stable source of income for the state.
The APF's primary objectives are to generate long-term income for the state, to help maintain public services, and to share the state's resource wealth among Alaskans. The fund is managed by the Alaska Permanent Fund Corporation (APFC), an independent state-owned corporation.
The APF receives a portion of the state's oil and gas royalties, lease payments, and other revenues related to the extraction of natural resources. These revenues are invested in a diversified portfolio of assets, including equities, fixed income, real estate, infrastructure, and alternative investments. The goal is to achieve long-term capital appreciation while preserving the real (inflation-adjusted) value of the fund's principal.
A unique feature of the APF is the Permanent Fund Dividend (PFD) program, which distributes a portion of the fund's investment earnings to eligible Alaskan residents annually. The PFD program was established in 1982 to ensure that all Alaskans benefit from the state's resource wealth and to encourage a sense of ownership and responsibility for the fund. The amount of the dividend varies each year based on the fund's performance and a five-year average of its realized earnings.
In summary, the Alaska Permanent Fund is a sovereign wealth fund established to manage a portion of Alaska's oil and gas revenues for the long-term benefit of the state and its residents. The fund is invested in a diversified portfolio of assets and is managed by the Alaska Permanent Fund Corporation. One of the key features of the APF is the Permanent Fund Dividend program, which distributes a portion of the fund's earnings to eligible Alaskan residents annually.