On September 28, the Alaska Permanent Fund Corporation released its FY2026 Annual Report ahead of the Board of Trustees’ meeting scheduled for September 30‑October 1. Titled “What Alaska Built,” the report marks the fund’s 50th anniversary and highlights a strong financial performance.
Performance exceeds expectations
The fund achieved a 12.42% return for FY26, well above the 8.54% return objective set for the year. Over the past decade the fund also outperformed its annualized benchmark of 8.91% by delivering a 9.28% annualized return.
At the close of FY26 the Permanent Fund’s total audited value stood at $91.9 billion, comprising $73.8 billion in the principal (corpus) and $18.1 billion in the Earnings Reserve Account (ERA). The fund grew by $6.8 billion during the fiscal year.
Leadership outlook
Executive Director and CEO Devon Mitchell wrote, “Today, the Fund represents not only what Alaska has built; it is a central part of what Alaska is building… The next 50 years will be defined in large part by how Alaskans manage the Permanent Fund, not in the amounts saved by Alaskans of the past but rather by how future Alaskans prudently invest and grow those savings—and the Alaskan quality of life that will make possible.”
Constitutional amendment proposal
Board Chair Jason Brune emphasized the trustees’ continued support for a constitutional amendment that would create a single‑account framework, protecting roughly 95% of the fund’s assets, providing automatic inflation proofing, and aligning the structure with the fund’s long‑term purpose.
The proposal to merge the corpus and the ERA into one account has sparked debate. State Senator Robb Myers (R‑North Pole) advocates for the merger, while former Commerce Commissioner Jon Faulkner opposes it. 2026 lieutenant‑governor candidate Josh Church, running with Governor Dave Bronson, published an op‑ed supporting the merger.
Investment composition
The fund’s largest revenue driver remains public equities, generating $33.2 billion in revenue and representing investments in 76 countries, with 59% in U.S. stocks and 41% abroad. The target allocation for public equities will rise from 32% to 34% for FY27. Other asset classes include fixed income, private equity, real estate, private income, absolute return, cash, and tactical opportunities.
State contributions and spendable balance
Alaska deposited $535 million into the corpus for FY26, up from $489 million in FY25, reflecting higher mineral prices and production. Approximately 80%‑85% of the fund’s balance remains non‑spendable, with only 4% designated as the Pre‑cent of Market Value (POMV) drawn from the ERA to the General Fund. An additional 11% is labeled “assigned,” earmarked for future government appropriations and totaling about $14 billion.
The Permanent Fund continues to be a cornerstone of Alaska’s fiscal health, providing both a savings vehicle for future generations and a source of annual dividends for state residents.
Original reporting: Must Read Alaska (Anchorage) — read the source article.
