Market rally boosts permanent fund in second quarter

JUNEAU - The Alaska Permanent Fund's investments returned 3.3 percent for the second quarter of Fiscal Year 2010, according to reports issued Monday.

The fund ended on Dec. 31 with a value of $34.6 billion, according to the Alaska Permanent Fund Corporation, which manages the money.

For the first half of the fiscal year, the fund grew by $4.7 billion in value and returned 14.2 percent.

The stock market rally that began before the start of the fiscal year carried through the end of the December, although at a slower pace than the first quarter of the fiscal year.

The U.S. stock portfolio returned 5.9 percent for the quarter and 23.1 percent for the fiscal year-to-date; the non-U.S portfolio returned 4.5 percent and 24.1 percent respectively; and the global portfolio returned 4.8 percent and 23.3 percent respectively.

The fund's U.S. bond portfolio returned 1.1 percent for the quarter and 6.4 percent for the fiscal year-to-date.

The non-U.S. bond portfolio was nearly flat for the quarter at 0.3 percent but up for the year-to-date, returning 3.5 percent.

The fund's absolute return investments saw a 2.3 percent return for the quarter and 8.9 percent for the year-to-date, while real estate returned -0.7 percent for the quarter and -0.9 percent for the fiscal year-to-date.

The fund earned $266 million in statutory net income for the quarter, bringing the year-to-date total to $385 million.