Shannon Ely McCain

This mid-fiscal year review for the Alaska Permanent Fund Corporation commemorates its 50th anniversary, highlighting its evolution into Alaska's primary revenue source. The document outlines the Fund's disciplined stewardship, long-term investment management, and globally diversified portfolio. Key focus areas include performance measurement, inflation proofing to preserve purchasing power, and the Percent of Market Value (POMV) formula for stable state contributions. The plan reaffirms a commitment to prudent management and responsible investing, ensuring the Fund's continued strength for future generations.

The multi-day meeting agenda included numerous CEO reports covering pending board matters, trustee education, disclosure reports, HR summaries, and financial updates for FY26, as well as an investment referral log review. Key operational discussions involved an overview of risk and compliance, corporate operations finance, and extensive board education sessions on asset allocation, fund performance, the annual asset allocation study, private markets, public markets, and fixed income. A dedicated presentation was also scheduled for digital assets. The board addressed forward legislative initiatives, including proposed constitutional amendments for a single-fund endowment structure, and monitored legislation impacting the corporation. Financial reporting highlighted Q2 FY26 results, showing a total return of 2.15% for the quarter and net assets of $86.3 billion as of December 31, 2025. During a separate agenda item, the Board approved a 3% merit increase for the CEO/Executive Director, effective January 1, 2026.

The Governance Committee meeting primarily focused on discussing and formulating recommendations regarding the WilmerHale Governance Recommendations. Key discussion areas requiring Board input included potential amendments to the annual conflict of interest disclosure process, decisions on prohibiting or modifying the process for investment referrals by Trustees, expanding the use of remote work arrangements for staff recruitment and retention, enhancing the Trustee Orientation process (including participation by existing Trustees), bolstering continuing education opportunities for staff and Board members, increasing non-meeting social opportunities for relationship building between staff and Trustees, and generating public education material clarifying the roles of staff versus Trustees in managing the Permanent Fund.

The Quarterly Meeting agenda included numerous standard reports covering CEO updates on pending matters, disclosures, staff summaries, HR activity, communications, legislative tracking, and financial performance. Key discussion points included the FY26 Budget Overview, which involved zero-based budgeting for operations, facilities, and investment management allocations, as well as discussions from the previous meetings: the approval of minutes from the September 4, 2025 Regular Meeting and the October 1-2, 2025 Annual Meeting. The agenda also featured educational sessions on Fund Performance from Callan, Overviews of Public and Private Markets, and a Risk & Compliance Review. Furthermore, the board addressed the 2026 and 2027 Board Meeting Calendars.

The Board of Trustees convened its Quarterly Meeting to discuss key organizational matters. Discussions included the Fund's performance for the first quarter of FY26, which concluded on September 30, 2025, noting a one-year return of 4.38%. Leadership reports provided updates on investment activities, operations, and priorities. Overviews of public and private markets were presented, with an in-depth review focusing on the Private Equity portfolio construction and performance. The Chief Risk and Compliance Officer confirmed that exposures remain within tolerance levels. Furthermore, the Board conducted an annual evaluation of the CEO, unanimously affirming support for his performance and leadership for the upcoming year.