Alaska Permanent Fund

related topics
{company, market, business}
{rate, high, increase}
{government, party, election}
{law, state, case}
{water, park, boat}
{day, year, event}
{area, community, home}

The Alaska Permanent Fund is a constitutionally established permanent fund, managed by a semi-independent corporation, established by Alaska in 1976, primarily by the efforts of then Governor Jay Hammond. Shortly after the oil from Alaska’s North Slope began flowing to market through the Trans-Alaska Pipeline System, the Permanent Fund was created by an amendment to the Alaska Constitution to be an investment for at least 25% of proceeds from some mineral (such as oil and gas) sales or royalties. This does not mean the fund is solely funded by oil revenue. The Fund does not include either property taxes on oil company property nor income tax from oil corporations, so the minimum 25% deposit is closer to 11% if those sources were also considered. The Alaska Permanent Fund sets aside a certain share of oil revenues to continue benefiting current and all future generations of Alaskans. Many citizens[who?] also believed that the legislature too quickly and too inefficiently spent the $900 million bonus the state got in 1969 after leasing out the oil fields. This belief spurred a desire to put some oil revenues out of direct political control.

The Alaska Permanent Fund Corporation manages the assets of both the Permanent Fund and other state investments, but spending Fund income is up to the Legislature. The Corporation is to manage for maximum prudent return, and not—as some Alaskans at first wanted—as a development bank for in-state projects. The Fund grew from an initial investment of $734,000 in 1977 to approximately $28 billion as of March 2008. Some growth was due to good management, some to inflationary re-investment, and some via legislative decisions to deposit extra income during boom years. Each year, the fund's realized earnings are split between inflation-proofing, operating expenses, and the annual Permanent Fund Dividend.

In 2008, Jeffrey Scott took over as Chief Investment Officer (CIO). Much of the assets are managed by five external managers: Pacific Investment Co., Bridgewater Associates, AQR Capital Management, GMO and Goldman Sachs Asset Management.[1]


Permanent Fund Dividend

The Permanent Fund Dividend is withstanding the provisions of (a) - (c) of this section, an individual is not eligible for a permanent fund dividend for a dividend year when

The amount of each payment is based upon a five-year average of the Permanent Fund's performance and varies widely depending on the stock market and many other factors.

Full article ▸

related documents
Economy of Denmark
Discounted cash flow
Economy of scale
Economy of Australia
Trade union
Stock market index
Net present value
Health care reform
Celtic Tiger
Economic bubble
High-yield debt
Zero-coupon bond
Historical cost
Internal rate of return
Representative money
Two-part tariff
Equity investment
Transaction cost
Economy of Austria
Market trends
Medicare (Australia)
Startup company
ITT Corporation
Economy of Bermuda
Cash flow
Hilton Hotels Corporation
Corel Corporation
Ernst & Young