APFC moves to formalize benchmark review for $80 billion Permanent Fund

The Alaska Permanent Fund Corporation's Governance Committee reviewed a proposed charter July 20 that would create a dedicated advisory body to periodically evaluate the performance benchmarks identified in APFC's Investment Policy, forwarding the proposal to the full Board of Trustees for consideration.

The proposed Benchmark Review Committee would conduct annual reviews of existing benchmarks and evaluate proposed benchmark modifications, advising the board without binding authority. Governance Committee Chair Ethan Schutt said the initiative builds on prior board-level benchmark decisions, including past adjustments to public equities tracking error bands. "Strong governance depends on clear standards for measuring investment performance," Schutt said. "A consistent, transparent review process strengthens oversight and helps ensure those standards remain aligned with the Fund's objectives."

A 2023 APFC governance review called for broader structural reforms, including enhanced policy relevance and wider participation.

The full Board of Trustees is set to consider the charter at its Sept. 30 through Oct. 1 Annual Meeting.