The Alaska Permanent Fund Corporation (APFC) Board of Trustees held meetings on September 4th to review and approve the annual audited financial statements and advance the FY27 budget proposal to support core talent, security, and investment priorities.

Ethics, Audit & Cybersecurity Committee

The Ethics, Audit & Cybersecurity Committee convened to review the external audit results from KPMG and discuss matters related to cybersecurity and ethics, as part of its oversight responsibilities. In line with state statutes and our commitment to transparency, APFC conducts an annual audit of the Fund's financials by an independent external auditor. The audit will be included in the Alaska Permanent Fund Corporation's FY25 Annual Report, which will be released prior to the Board of Trustees’ Annual Meeting scheduled for October 1-2, 2025.

“The work and information presented today reflect the expanded role of the committee in safeguarding the Fund,” said Committee Chair Ryan Anderson. “The Trustees and staff are focused on ensuring APFC’s financial reporting is accurate, transparent, and independently validated, and we have extended that same oversight to ethics, legal matters, and IT security to uphold the trust of all Alaskans."

Senior Portfolio Accountant II Jacki Mallinger presented an overview of the audited financial statements. As of June 30, 2025, the end of FY25, the Alaska Permanent Fund had an audited total Fund balance of $85.1 billion. The value of the permanent savings in the Principal amounted to $58.9 billion and $13.6 billion of associated unrealized gains. The Earnings Reserve Account (ERA) contained a $3.8 billion commitment for the FY26 Percent of Market Value (POMV) draw, $6.4 billion in realized earnings, and $2.4 billion in unrealized appreciation. The total fund return for the fiscal year was 9.35% net of fees.

APFC reported a Generally Accepted Accounting Principles (GAAP) net income of $7.8 billion, incorporating both realized and unrealized gains. The realized statutory net income totaled $5.9 billion and was deposited into the ERA for legislative appropriation, which is available to support inflation proofing and the annual POMV draw for dividends and government services. Given the lack of appropriation, there was no transfer from the ERA to the Principal for FY25 inflation proofing. The FY25 POMV draw to the general fund amounted to $3.7 billion, and mineral royalty deposits to the corpus totaled $489 million.

Following its 2024 transition from the Audit Committee to the Ethics, Audit & Cybersecurity Committee, discussions emphasized ongoing investment in security infrastructure, data governance, and organizational culture that supports accountability, including an update on legal matters, an IT security proposal, and an overview of APFC’s ethics program. Director of Human Resources, Shannon McCain, provided an overview of APFC’s ethics program, including compliance and reporting processes. Chief Information Technology Officer Scott Balovich proposed an amendment to the KPMG contract to add an IT Security Audit and Penetration test to meet the committee’s expanded charter requirements, which the Committee supported.

Regular Board of Trustees Regular Meeting

CEO Deven Mitchell and CFO Valerie Mertz presented the FY27 Proposed Budget. The Board reviewed and ultimately approved forwarding the budget proposal to the Governor’s Office of Management and Budget for consideration and inclusion in the legislative release. The plan aligns resources with APFC’s mission and supports the high level of investment expertise demanded of APFC through key initiatives:

• Recruit and retain top talent, including fully funded incentive compensation
• Continue the IT strategic roadmap with necessary upgrades and data center equipment refresh
• Enhance analytics to support effective, timely investment decision-making.

“APFC’s ability to deliver consistent, competitive returns depends on having the right people, systems, and safeguards in place,” said CEO Deven Mitchell. “This proposed budget is less than last year’s but still includes those necessary resources so we can continue earning for Alaskans, who rely on the Fund as the state’s largest source of general fund revenue.”

The Board welcomed Acting Commissioner Janelle Earls, who, as outlined in statute, assumed the seat previously held by Trustee Adam Crum. The Board extends its gratitude to Trustee Crum for his years of dedicated service to APFC and the Fund. Following Trustee Crum’s resignation as Commissioner of the Department of Revenue, Trustee Earl’s appointment ensures continuity of representation and ongoing partnership with the State of Alaska.

The next meeting of the Board of Trustees will be on October 1- 2, 2025, in Anchorage, AK and virtually via Teams Webinar.

About APFC

The Alaska Permanent Fund Corporation (APFC) manages the assets of the Alaska Permanent Fund, a globally recognized sovereign wealth fund. Established in 1976, the Fund preserves Alaska's nonrenewable mineral and oil wealth as a renewable financial resource for current and future generations of Alaskans. The Fund also serves as the primary source of revenue for Alaska's unrestricted general funds, supporting the state's economic stability and prosperity. APFC is a quasi-independent state agency with one mission: to manage and invest the assets of the Alaska Permanent Fund and other funds designated by law. As of June 30, 2025, the Alaska Permanent Fund is the largest sovereign wealth fund in the U.S., with $85.1 billion in assets.

For more information, visit apfc.org.

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