A new committee would review how the Permanent Fund measures itself

Benchmarks decide whether the Alaska Permanent Fund is doing well or badly, and who picks them is not a small question. Trustees of the roughly $90 billion fund will consider creating a standing committee to review those benchmarks when they meet Sept. 30.

The Governance Committee advanced the proposed charter July 20. The Benchmark Review Committee would evaluate existing benchmarks annually and weigh proposed changes, advising the board without binding authority. Committee Chair Ethan Schutt said a consistent, transparent review process strengthens oversight and keeps performance standards aligned with the fund's objectives.

The fund's record against those yardsticks is disputed. Critics, including the group Alaskans for Sustainable Budgets, argue the corporation has beaten its own passive index benchmark only about half the time over eight years while paying substantial management and incentive fees. Callan, the consultant retained by the Legislature to evaluate the fund, told lawmakers in February that it outperforms comparable large funds on a risk-adjusted basis.

A 2023 governance review had called for broader structural reforms at the corporation.