US - The Alaska Permanent Fund said it lost ground in the second quarter of fiscal year 2008, with a total return of -0.5%, ahead of the benchmark return of -0.6%.
Michael Burns, chief executive officer, Alaska Permanent Fund, said: "Essentially we're a little ahead of where we started at the beginning of the fiscal year, and our portfolios still have the unrealised gains that we've accumulated since 2003. We're not happy to see a period of down markets, but we're not surprised after the rapid expansion we saw over the last few years."
The fund's US stock portfolio returned -3.1% for the quarter, the non-US stock portfolio returned 0.4% for the quarter, and the global stock portfolio returned -2.1% for the quarter. While the US stock portfolio was down for the fiscal year-to-date, the non-US and global portfolios were even, with returns below 1.0%.
However, bonds did better, with the US portfolio returning 2.6% for the quarter and 5.4% for the year-to-date, while the non-US portfolio returned 2.7% for the quarter, and 8% for the year-to-date.
The fund's real estate was down for the quarter at -1.7%, but positive returns in the first quarter helped the asset class hold steady at 0.5% for the year-to-date. The fund's absolute return investments returned 1.8% for the quarter and 2.2% for the year-to-date.
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