Permanent Fund ends its first quarter nearly flat after a $937 million September loss

The Alaska Permanent Fund earned $61.1 million in the first quarter of the fiscal year, after a $937 million loss in September erased most of the $998 million it gained over July and August combined.

That is the fund's total revenue for July 1 through Sept. 30 on a balance of $91.9 billion at the start, according to unaudited financial statements the Alaska Permanent Fund Corporation posted Oct. 15. That figure combines interest, dividends, real estate income and changes in market value. After $43.8 million in operating costs and other appropriations, the fund came out $17.3 million ahead.

July finished down $14 million, and August gained $1 billion. In September, stocks lost $689 million and bonds lost $533 million. Real estate, private credit and infrastructure also fell, while private equity, absolute return investments and derivatives gained.

The fund's balance dropped from $91.9 billion to $88 billion over the quarter, and the drop came from the state's annual draw rather than investment losses. The fund has sent $2 billion of this year's roughly $4 billion draw to the state and recorded the rest as owed. The draw provides about two-thirds of the state's unrestricted revenue, paying for state services and the Permanent Fund dividend, the corporation said in its annual report last month, Alaska News reported Sept. 30.

On the fund's statutory books, which count only realized gains, net income for the quarter was $1.8 billion. That money flows into the Earnings Reserve Account, which the Legislature can appropriate.

The reserve's uncommitted realized earnings stood at $6.4 billion on Sept. 30, up from $5.65 billion on July 31, Alaska News reported Sept. 20. That is after the corporation set aside about $6 billion for next year's draw and inflation proofing.

The constitutionally protected principal held $72.8 billion.