ALASKA PERMANENT FUND

Balance Sheets
Unaudited
(millions of dollars)

August 31,
2012

June 30,
2012

1,692.8
183.3

1,995.6
506.8

7,503.6
18,019.0
4,661.9
3,030.1
3,670.5
1,766.8
845.7
539.3
217.8

7,568.7
17,425.0
4,387.1
2,924.2
3,582.2
1,712.9
863.2
524.8
217.8

40,254.7

39,205.9

Assets
Cash and temporary investments
Re Receivables, prepaid expenses and other assets
Investments
Marketable debt securities bs
Preferred and common stock bs
Real estate bs
ReaReal return
Ab DisAbsolute return, mezzanine debt, distressed and credit opps
PrivPrivate equity
InfrInfrastructure
EmEmerging markets total opportunities
Mezza Alaska certificates of deposit

Total investments
TOTAL ASSETS

42,130.8

41,708.3

Accounts payable bs
Income distributable to the State of Alaska

679.9
0.0

752.9
622.3

679.9

1,375.2

35,137.8
3,844.4
38,982.2

35 032 5
35,032.5
3,220.0
38,252.5

329.9
624.9
3.3
958.1

0.0
0.0
0.0
0.0

1,267.0
243.5
1,510.5

1,905.5
175.1
2,080.6

41,450.8

40,333.1

42,130.8

41,708.3

Liabilities

TOTAL LIABILITIES

Fund Balances
Nonspendable:
ConPermanent Fund corpus - contributions and appropriations
Un Not in spendable form - unrealized appreciation on invested assets
To Total nonspendable
Committed:
Re Current FY dividend
Re Current FY inflation proofing
Re Current FY AK Capital Income Fund
Total committed
Assigned for future appropriations:
Realized earnings
Un Unrealized appreciation on invested assets
Total assigned
TOTAL FUND BALANCES
TOTAL LIABILITIES AND FUND BALANCES

ALASKA PERMANENT FUND

Statements of Revenues, Expenditures and Changes
in Fund Balances
Month ended
August 31,
2012

Unaudited
(millions of dollars)

Two months
ended August 31,
2012

Fiscal year-end
audited June 30,
2012

Revenues
Interest is
Dividends is
Real estate and other income
Total interest, dividends, real estate
and other income

22.0
43.7
25.0

43.1
60.6
24.3

297.2
476.4
214.8

90.7

128.0

988.4

Net increase (decrease) in the fair value of investments

Marketable debt securities
Preferred and common stock
Real estate
ReReal return
Dist M Absolute return, credit opps, distressed and mezzanine debt
Pr Private equity
InfInfrastructure
EmEmerging markets total opportunities
DeForward exchange contracts and equity futures
Currency

(1.2)
374.3
0.7
30.4
25.6
18.6
10.0
2.5
2.2
1.2

139.3
548.2
33.1
105.2
33.3
12.7
10.0
12.7
13.7
(9.4)

Total net increase (decrease) in investments

464.3

898.8

(990.0)

TOTAL REVENUES

555.0

1,026.8

(1.6)

256.2
(1,658.9)
221.8
126.7
0.3
134.5
(77.8)
(74.9)
24.7
57.4

Expenditures
p
Operating expenditures
LegiOther legislative appropriations
TOTAL EXPENDITURES
Excess (deficiency) of revenue over expenditures

(7.1)
0.0

(14.3)
0.0

(91.3)
(7.0)

(7.1)

(14.3)

(98.3)

547.9

1,012.5

(99.9)

46.2
0.0

105.2
0.0

915.1
(622.3)

594.1

1,117.7

192.9

40,856.7

40,333.1

40,140.2

41,450.8

41,450.8

40,333.1

547.9

1,012.5

Other Financing Sources (Uses)

Transfers in
Transfers out
NET CHANGE IN FUND BALANCES

Fund Balances
Beginning of period
End of period

Statutory Income Calculation

Excess (deficiency) of revenues over (under) expenditures
Adjustments to bring net income to statutory net income:
SNUnrealized (gains) losses
Alaska Capital Income Fund realized income
SNI AmSTATUTORY NET INCOME

(99.9)

(293.4)
(2.6)

(692.8)
(3.3)

1,685.0
(17.1)

251.9

316.4

1,568.0

ALASKA PERMANENT FUND

Receivables and Payables
August 31,
2012

Unaudited
(millions of dollars)

Accounts Receivable
Interest Receivable
Dividends Receivable
Pending Sales Fixed Income
Pending Sales Equities
PenPending Sales Alternative Investments
State Dedicated Revenues Receivable
PenPending Sales Real Estate/REITs
Prepaid and Other Receivables
RecTOTAL RECEIVABLES

56.3
45.4
18.5
57.7
0.0
4.7
0.7
0.0
183.3

Accounts Payable
Operating Accrued Payables
Accrued Operating Payables
Pending Purchase Fixed Income
PenPending Purchase Equities
Pending Purchase Real Estate/REITs
AcTOTAL PAYABLES

15.4
603.4
60.7
0.4
679.9

ALASKA PERMANENT FUND

FUND FINANCIAL HISTORY & PROJECTIONS
as of August 31, 2012
Projections extend ten years, and are based on best available information ($ in millions)

Assigned Fund Balance

Nonspendable Fund Balance - Principal

FY
77-02
03
04
05
06
07
08
09
10
11
12
10% 13
25% 13

FY-Begin
Contrib.
Balance
0
21,884
22,988
23,526
24,647
26,104
27,497
29,149
30,944
31,624
33,044
35,033
35,033

Mid

13

35,033

25%

13
13
14
15
16
17
18
19
20
21
22
23

35,033
35,033
36,824
38,658
40,544
42,428
44,285
46,197
48,133
50,093
52,077
54,070

10%

Dedicated
Appro- (1)
State
priations
Revenues
7,024
7,328
354
398
(339)
353
0
480
0
601
0
532
0
844
0
651
0
679
0
887
0
915
0
893
0
893
(6)

Cumulative Totals
Proj. for 2013-2023

(2)

Unrealized
Gain (Loss)
Net
FY-End
Change
Balance
505
505
601
1,106
1,909
3,015
859
3,874
347
4,221
1,977
6,198
(3,886)
2,064
(3,513)
(1,449)
1,869
421
4,367
4,788
(1,568)
3,220
(4,530)
(1,310)
(1,838)
1,382

FY-End
Inflation
Balance
Proofing Contributions
7,532
21,884
352
22,988
524
23,526
641
24,647
856
26,104
860
27,497
808
29,149
1,144
30,944
0 (9)
31,624
533
33,044
1,073
35,033
898
36,824
898
36,824

FY-End Nonspendable
Balance
22,389
24,094
26,541
28,522
30,325
33,694
31,213
29,496
32,045
37,832
38,253
35,513
38,206

Acct.
Statutory
Net
Net
Income (3)
Income (3)
23,539
24,889
963
355
3,434
1,502
2,640
1,754
3,072
2,689
5,448
3,429
(1,372)
2,938
(6,394)
(2,509) (8)
3,517
1,590 (8)
6,812
2,143 (8)
(100)
1,568
(3,983)
763
(700)
1,231

Dividends
11,844
691
581
532
689
1,022
1,293
875
858
801
605
377
426

Distributions of
Statutory Net Income
Inf-Proofing
Gen. Fund
/ Other (10)
/ Other (4)
11,627
282
352
0
170
0
641
27 (4)
856
37
860
42
808
33
1,144
0 (8)
0 (9)
0 (8)
533
13 (8)
1,073
17
898
9
898
14

FY-End
Balance
Realized
1,136
100
859
1,440
2,585
4,132
4,969
441
1,194
2,016
1,905
1,393
1,812

Unrealized
Gain (Loss)
Net
FY-End
Change
Balance
0
0
0
0
0
0
0
0
0
0
0
0
352
352
(373)
(21)
37
16
276
292
(117)
175
(225)
(50)
(107)
68

TOTAL
FUND

(5)

Net
Assigned
Change
1,136
(1,035)
759
581
1,145
(1,505)
1,189
(4,901)
790
1,098
(227)
(737)
(201)

FY-End
Assigned
Balance
1,136
100
859
1,440
2,585
4,132
5,321
420
1,210
2,308
2,081
1,343
1,880

FY
77-02
03
04
05
06
07
08
09
10
11
12
13
13

FY-End
Balance
23,525
24,194
27,400
29,962
32,910
37,826
36,534
29,916
33,255
40,140
40,333
36,857
40,086

893

898

36,824

798

4,018

40,842

2,933

2,014

508

898

22

2,513

99

274

707

2,787

13

43,629

0
0
0
0
0
0
0
0
0
0
0
0

893
893
891
898
849
777
785
762
738
713
675
635

898
898
943
989
1,035
1,080
1,127
1,174
1,222
1,270
1,319
1,368

36,824
36,824
38,658
40,544
42,428
44,285
46,197
48,133
50,093
52,077
54,070
56,073

3,619
6,042
893
948
997
1,056
1,112
1,168
1,224
1,281
1,337
1,393

6,839
9,262
4,912
5,860
6,857
7,913
9,025
10,193
11,417
12,697
14,035
15,428

43,663
46,086
43,569
46,404
49,285
52,198
55,222
58,326
61,510
64,774
68,105
71,501

6,958
10,645
3,177
3,402
3,637
3,881
4,133
4,396
4,670
4,956
5,254
5,563

2,873
3,721
2,185
2,343
2,507
2,679
2,856
3,040
3,233
3,434
3,643
3,860

598
687
997
1,076
1,115
1,231
1,320
1,410
1,503
1,600
1,702
1,807

898
898
943
989
1,035
1,080
1,127
1,174
1,222
1,270
1,319
1,368

32
40
22
22
22
22
22
22
22
22
22
22

3,282
4,041
2,758
3,036
3,393
3,761
4,170
4,627
5,135
5,699
6,321
7,006

434
841
76
88
110
124
143
165
191
219
251
287

610
1,016
350
439
548
672
815
980
1,170
1,389
1,641
1,928

1,812
2,977
321
366
467
492
552
622
699
783
873
972

3,892
5,057
3,108
3,474
3,942
4,433
4,985
5,606
6,305
7,088
7,961
8,934

13
13
14
15
16
17
18
19
20
21
22
23

47,555
51,143
46,677
49,879
53,227
56,631
60,207
63,932
67,815
71,862
76,066
80,434

8,616

12,424

46,001

31,793

14,269

12,424

247

(2)

Assumptions:

Total Return - Inflation = Total Real Return

-9.46%
2.50%
-11.96%
FY 2013
-1.41%
2.50%
-3.91%
25%
FY 2013
2.50%
Mid
FY 2013 (6) 7.50%
5.00%
17.37%
2.50%
14.87%
25%
FY 2013
26.41%
2.50%
23.91%
10%
FY 2013
FY 2014-2023 (7) 7.50%
2.50%
5.00%
10%

12,208
Statutory Return
2.20%
3.36%
25%
5.30%
Mid
7.43%
25%
9.53%
10%
10%

5.30%

Income year-to-date as of August 31, 2012

FY13 Statutory net income
Interest, dividends, real estate & other income
Realized gains (losses) on the sale of invested assets
Less operating exp / Legis. Appropriations
Less AK Capital Inc. Fund committed realized earnings
Statutory net income (loss)

FY13 Accounting (GAAP) net income

Statutory net income (loss)
Unrealized gains (losses) on invested assets
AK Capital Income Fund committed realized earnings
Accounting (GAAP) net income (loss)

(6)

128.0
206.0
(14.3)
(3.3)

316.4

316.4
692.8
3.3
1,012.5

6,853

Notes related to financial history and projections FY1977 - FY2023

(1) Appropriations include special general fund, realized earnings, and other miscellaneous appropriation transfers into principal.
(2)
Dedicated State Revenues in current and future fiscal years are based on the Spring 2012 Department of Revenue forecast.
(3) Accounting net income is based on United States Generally Accepted Accounting Principles (GAAP). Statutory net income is accounting net income, excluding any unrealized gains and
losses on investments, and excluding earnings of the Alaska Capital Income Fund (AM Hess, et al principal).
(4)
FY05 and forward, Amerada Hess, et al. annual net positive settlement earnings are transferred to Alaska Capital Income Fund (ACIF) per AS 37.13.145(d).
(5) Beginning in FY08, based on legal opinion, unrealized gains and losses were allocated between the nonspendable fund balance (principal) and the assigned fund balance
(earnings reserve). Prior to FY08, all unrealized gains and losses were included with principal.
(6)
Current year returns and inflation are based on 2011 Callan capital market assumptions.
(7)
Future returns are based on 2011 Callan capital market assumptions and median expected returns (the mid case). Actual results will vary.
(8)
During FY 2009, the ACIF realized losses of $33.3 million, which are excluded from statutory net income, and are included in the ending unreserved balance as a deficit accoun
During FY 2010 and FY 2011, the ACIF had realized income of $20.8 and $25.3 million, which is excluded from statutory net income, and served to reduce the FY 2009 deficit.
(9)
The statutory inflation calculation for FY 2010 was -.36%; therefore, there was no inflation proofing transfer during FY 2010.
(10)
FY77-02 includes special appropriations to principal of $4 billion.
PERFORMANCE SUMMARY

1,752

Current
Month
0.18%
0.18%
2.91%
1.83%
2.38%
0.51%

Last 3
Months
2.15%
1.17%
7.10%
8.36%
9.49%
2.98%

Fiscal
Y-T-D
1.93%
1.52%
3.48%
3.12%
3.91%
1.23%

Calendar
Y-T-D
5.78%
3.88%
12.83%
6.16%
9.74%
7.11%

Last 12
Months
7.59%
5.37%
15.85%
-2.52%
7.84%
9.12%

Last 3
Years
7.51%
4.59%
13.69%
4.06%
8.78%
9.44%

Last 5
Years
6.78%
5.52%
2.06%
-3.49%
-1.66%
1.08%

1.12%
2.19%
-10.12%
5.05%
4.78%

N/M
1.54%
N/M
3.65%
2.64%

10.55%
5.22%
-8.08%
8.17%
7.64%

6.21%
3.68%
-7.79%
8.30%
6.38%

17.51%
6.00%
4.97%

5.72%
1.80%

Total Fund

N/M
0.62%
N/M
0.98%
1.37%

8.81%

1.88%

Total Fund Benchmark Return

1.36%

5.92%

2.80%

8.31%

7.01%

8.43%

2.15%

(preliminary as of August 31, 2012)

Domestic Fixed Income

Non-Domestic Fixed Income
Domestic Equities
Non-Domestic Equities
Global Equities
Real Estate
Private Equity
Absolute Return
Infrastructure
External CIO/Real Return Mandate