APFC Rebalances Public Equities, Increases Tacticals in Q4

By Mario Marroquin

The US$75 billion AUM Alaska Permanent Fund Corporation (APFC) moved $1.4 billion across public equities, and readjusted its private equity, private income and infrastructure, and real estate exposure in the fourth quarter of the 2022 fiscal year.

Meeting materials from APFC’s Board of Trustees meeting slated for September 21-22 report the fund made seven contributions and three redemptions from its public equities allocation, which accounted for a fraction of the 22 investment actions taken by the fund in non-cash assets.

APFC reported moving $300 million in tactical allocations in public equities to cash, while committing $500 million to tactical allocations in both U.S. and non-U.S. public equity in the same quarter. The fund also redeemed US$1.4 billion across three funds (MCM S&P 500, Mellon FTSE RAFI and SSGA Russell Fundamental).

Investment actions taken by APFC across private income and infrastructure, private equity and real estate break down as follows:

·         US$175.2 million in fund investments to Keros and HCP Studio funds.

·         US$51.3 million in co-investment to ION Intermediate Holdings and KKR.

·         US$196.4 million in fund commitments to HIG Advantage Buyout, L Catterton Growth, Fortissimo Capital, Charlesbank COF and Bain Capital Europe.

·         US$400 million to a joint venture with Greystar and CBRE US Logistics Partners.

APFC reported a negative 1.32% one-year return and a 9.03% five-year return at the end of June.

CIO Marcus Frampton told Markets Group in July that the sovereign wealth fund will focus on new development and core existing investments instead of fund investments. The investment actions report from APFC comes one month after the sovereign wealth fund agreed to fund up to US$1 billion in a joint venture with Denver-based REIT Apartment Investment & Management Co. (Aimco).

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