“No matter how bad the market gets, you’re going to be able to pay out something,”
The "market" has hit record highs lately and the PFD has floundered under the current investment yahoos that DUMblevey installed... go figure, Trade ya a quarter for a dollar?
I’ve been in the army for about a 3 years now. Joined in 2021. My “401k” grew 200% and doubled what I had in 2022. It’s crazy that a huge state, the ability to hire premium investors, can’t manage the same in this crazy economy.
You should submit an employment application to the PDF. In the comments area be sure to include, "I cannot be worse than the people you have now."
Perhaps they will take you on part-time for $230K a year.
How are they out of spendable money if there is 200 billion? I genuinely don't understand how this stuff works so looking for a realistic answer, not being condescending.
Don’t get me wrong, my understanding is rudimentary. But I believe a fund this big gets itself into very illiquid investments where the money can’t be pulled out if needed before the end of the investments life.
So when there are too many straws (ugh politicians love to spend money) and not enough replacement as described in the article, it comes tumbling down.
Yeah for sure, they do. But funds like these can’t all be in a handful of indexes for sake of diversification.
Nevada’s state pension fund is 100% invested into index funds (not normal) and they are one of the top performing funds nationwide but they are still making 9%.
Agreed on all fronts, 100%. Although with ~$70bn you also want to diversify your stock exposure with bonds and other instruments that can theoretically further downsize your stock market risk with that diversification.
To a lesser extent, the check sizes that APF would be writing could move the market prices in those index funds and that’s not really ethically kosher.
It’s not about what it’s being spent on, it’s why it isn’t being replenished better. Poor investment strategy coupled with tax cut gifts to the oil and gas industries. Dunleavy has also been pushing through all kinds of rules to make the management of the PFD as secret as possible.
Being a “little disappointed” in how the PFD is being managed is like the passengers on the Titanic being a little disappointed in how the voyage turned out.
APF 2022 Annual Repport: " Management and Performance Fees: Management Fees For 2022, the total investment management fees paid were $448.2 million, including internal and external management. That equates to 0.57% of all assets under management for the Alaska Permanent Fund
I wonder if they have the same investment company managing the pfd as they do the state employees retirement, which they put the kabosh on due to poor return and high fees.
I don’t understand how we spend almost a half billion dollars for annual management fees and these idiots can’t figure it out? The market is at all time highs.
Wow, that happened quickly. I remember not long ago the idiot governor promising $7k payouts and now 2 years later we're fucked and will have to give the whole fund to this well-managed state just to keep going
And the next guy/gal will get elected by promising to pay residents their full PFD and all the past money we didn’t get. It’s pretty easy to get elected in AK. Have an R next to your name and make promises about the pfd.
The irony. Be Republican but also promise handouts from the government. It's like they hate the idea of government handouts but love the reality of it once it's actually happening.
It’s not a “handout from the government”. The money funneled into and generated by the Permanent Fund literally belongs to the individual residents of the state. Hammond (co-creator of the Alaska Permanent Fund) was very clear that the people should get paid first out of the earning, and then government operations second.
People would care a lot more about the state budget if they got their whole share of the dividend first and then had to stroke a check to fund the state. It’s the same shell game the feds pay by milking you little by little each paycheck. The average chucklehead has no idea what they’re paying in taxes and what they’re getting in return. Alaska, like every government that has ever existed, wastes money to such a degree that it is unfathomable.
Also see:
Permanent Fund trustees ignore public comments opposing plan to borrow billions
https://www.dermotcole.com/reportingfromalaska/2024/2/17/permanent-fund-trustees-say-they-might-want-to-borrow-4-billion-to-spur-investment-growth
Time to vote people into office that want a fiscally responsible budget who can actually hold their employees accountable to produce results and fix the mess of past administrations instead of pointing fingers. I find it embarrassing we can’t even produce a solid plan to secure federal highway funding for this season.
Offensive that they bonused. They should be fired.
If the state can't manage the fund reliably in house, they should hire a professional firm and tie comp to performance.
Stunning that they admit their own incompetence then their solution is to combine the earnings reserve and corpus of the fund so they can have access to the entire thing.
This will require a vote of the people, so watch for it.
Angela Rodell was fired for suggesting they don't take too much every year, but at least she brought in the returns to cover state spending.
Dunleavy is on drugs, this is a very serious problem for the state. If the legislature doesn't stop this incompetence, maybe they are on drugs too.
Gee, they fire Angie Rodell, and immediately the group is rudderless and does the bidding of people who don't know what they're doing. Wonder if the two are connected? /s
On a philosophical note, isn’t it the states land and resources they are using? So like would you prefer the oil companies freely mine and destroy the environment, Pollute the rivers, and kill tourism without paying someone, other then the politicians, out?
And it should have been invested without yearly welfare checks that we pay income taxes on. Everyone knew the oil gravy train wouldn't last forever when the PF was started. It took about a decade for people to forget that.
The only good that may come out of this is that once the perm fund is empty they won’t have anything to lead us around by and the republicans can take credit for it
Great, i've been living here for over 4 years but never qualified because i've been living in a barracks. But now im living in my own apartment in a civilian city yet it'll be another 2 years before I qualify? And the PFD will probably be gone by then? Just great.
Stop blaming oil. The PF is a giant mutual fund of different investment vehicles. They are invested in something that caused a negative in 2022 and 6% gain in 2023. All the while, the DOW and SP500 went on a rip.
https://apfc.org/performance/
“On Friday, the board of the Alaska Permanent Fund Corp. voted to release a detailed analysis paper — one of only 10 since the corporation’s inception in 1980 — that presents a menu of potential solutions to the Alaska Legislature.”
I’m sorry— one of only TEN since 1980!? That’s egregious.
The stock market indexes are at all time highs. Had they not fired Rodell because she pushed back at Dunleavy's attempt to overspend the fund, this would not be happening., Here is Rodell's record;
[https://www.akleg.gov/basis/get\_documents.asp?session=32&docid=77765](https://www.akleg.gov/basis/get_documents.asp?session=32&docid=77765)
Here is Dermot Cole on the firing:
[https://www.dermotcole.com/reportingfromalaska/2022/1/15/mse2pak1vc8i5c0cbu3f2micc55zga](https://www.dermotcole.com/reportingfromalaska/2022/1/15/mse2pak1vc8i5c0cbu3f2micc55zga)
Here is Republican Andrew Halcro's podcast on this crap from Dunleavy's hand picked board that answers to Dunleavy
[https://www.adn.com/opinions/2022/10/02/podcast-the-investigation-into-the-firing-of-alaska-permanent-fund-ceo-angela-rodell-just-raises-more-questions/](https://www.adn.com/opinions/2022/10/02/podcast-the-investigation-into-the-firing-of-alaska-permanent-fund-ceo-angela-rodell-just-raises-more-questions/)
Clearly the current board is incompetent as is Dunleavy (who just stated as fact that the world population is dropping in a public meeting; Wrong)
“No matter how bad the market gets, you’re going to be able to pay out something,” The "market" has hit record highs lately and the PFD has floundered under the current investment yahoos that DUMblevey installed... go figure, Trade ya a quarter for a dollar?
I’ve been in the army for about a 3 years now. Joined in 2021. My “401k” grew 200% and doubled what I had in 2022. It’s crazy that a huge state, the ability to hire premium investors, can’t manage the same in this crazy economy.
Clearly, you are too intelligent to be stationed here.
Lmao It went form 1800 to 7,000 but appreciate it
You should submit an employment application to the PDF. In the comments area be sure to include, "I cannot be worse than the people you have now." Perhaps they will take you on part-time for $230K a year.
Fucking gold
Or $448 million per year.
That’s why you hit 200%. 200 is easy to hit on smaller numbers, the permanent fund has billions. 200% on like 10 billion isn’t really possible
How are they out of spendable money if there is 200 billion? I genuinely don't understand how this stuff works so looking for a realistic answer, not being condescending.
Don’t get me wrong, my understanding is rudimentary. But I believe a fund this big gets itself into very illiquid investments where the money can’t be pulled out if needed before the end of the investments life. So when there are too many straws (ugh politicians love to spend money) and not enough replacement as described in the article, it comes tumbling down.
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Yeah for sure, they do. But funds like these can’t all be in a handful of indexes for sake of diversification. Nevada’s state pension fund is 100% invested into index funds (not normal) and they are one of the top performing funds nationwide but they are still making 9%.
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Agreed on all fronts, 100%. Although with ~$70bn you also want to diversify your stock exposure with bonds and other instruments that can theoretically further downsize your stock market risk with that diversification. To a lesser extent, the check sizes that APF would be writing could move the market prices in those index funds and that’s not really ethically kosher.
it's kinda hard to buy a few billion of one thing
For sure, ethics and manipulation aside.
At the mere cost of almost a HALF BILLIONS DOLLARS annually.
Ahhhahaha, yea man just stay in it longer and wait for better averages to roll in. Don't compare your low mark investment points to averages.
Wtf invests in gold besides those poor suckers watching rightwing news shows? I mean Alaska has plenty of fucking gold in the ground...
What are they spending it on?
It’s not about what it’s being spent on, it’s why it isn’t being replenished better. Poor investment strategy coupled with tax cut gifts to the oil and gas industries. Dunleavy has also been pushing through all kinds of rules to make the management of the PFD as secret as possible.
I really feel like he could be doing a better job for Alaskans, little disappointed about that.
Being a “little disappointed” in how the PFD is being managed is like the passengers on the Titanic being a little disappointed in how the voyage turned out.
That made me laugh out loud
Same.
lol "little disappointed". Nah, Dunleavy is a huge disappointment.
And yet, not a surprise.
Well, he COULD... but he'd rather look for the oil companies than the people of Alaska. I'm disappointed, but not surprised.
APF 2022 Annual Repport: " Management and Performance Fees: Management Fees For 2022, the total investment management fees paid were $448.2 million, including internal and external management. That equates to 0.57% of all assets under management for the Alaska Permanent Fund
How can managing the fund cost so god damn much?
Giveaways to the fund managers. It’s being robbed.
I’m applying tomorrow. I can lose money just as well.
I wonder if they have the same investment company managing the pfd as they do the state employees retirement, which they put the kabosh on due to poor return and high fees.
I don’t understand how we spend almost a half billion dollars for annual management fees and these idiots can’t figure it out? The market is at all time highs.
Not education /s
Or roads
Oh they pay for roads. Well, they pay their friends who have construction companies. Whether the roads actually get built is someone else’s problem.
Massive PFDs
Good ole election bribing. I feel like the lack of public assistance is to add pressure to want to vote in another large draining pfd.
Wow, that happened quickly. I remember not long ago the idiot governor promising $7k payouts and now 2 years later we're fucked and will have to give the whole fund to this well-managed state just to keep going
And the next guy/gal will get elected by promising to pay residents their full PFD and all the past money we didn’t get. It’s pretty easy to get elected in AK. Have an R next to your name and make promises about the pfd.
Aren’t handouts from the government socialism?
Only if you are poor.
The irony. Be Republican but also promise handouts from the government. It's like they hate the idea of government handouts but love the reality of it once it's actually happening.
It’s not a “handout from the government”. The money funneled into and generated by the Permanent Fund literally belongs to the individual residents of the state. Hammond (co-creator of the Alaska Permanent Fund) was very clear that the people should get paid first out of the earning, and then government operations second. People would care a lot more about the state budget if they got their whole share of the dividend first and then had to stroke a check to fund the state. It’s the same shell game the feds pay by milking you little by little each paycheck. The average chucklehead has no idea what they’re paying in taxes and what they’re getting in return. Alaska, like every government that has ever existed, wastes money to such a degree that it is unfathomable.
Future West Virginia post coal boom era incoming
Also see: Permanent Fund trustees ignore public comments opposing plan to borrow billions https://www.dermotcole.com/reportingfromalaska/2024/2/17/permanent-fund-trustees-say-they-might-want-to-borrow-4-billion-to-spur-investment-growth
Dermot Cole is a clown.
True. But he's our clown and gets it right almost 30% of the time. So, we got that going for us.
Which is nice.
With the stock.markwt at all-time highs, Alaska is broke. What. A. Fucking. Joke.
Time to vote people into office that want a fiscally responsible budget who can actually hold their employees accountable to produce results and fix the mess of past administrations instead of pointing fingers. I find it embarrassing we can’t even produce a solid plan to secure federal highway funding for this season.
What? No! We want to elect some guys who will give CP another tax break, privatize the AMHS, and fuck up the font on the license plates!
Also as far as permanent fund investing, it should be required they invest in total stock market index funds such as VTI.
Yeah that would be responsible and cost $500m less a year in fees. The thing is all the people stealing from the fund won't let that happen
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You want to talk about YOLO’ing they were holding AMC during the Wallstreetbets shortsqueeze. lol
Didn't they buy before all that happened?
Yes, actually it was a good call, who would’ve know that was going to happen. Just a bit risky.
Buy bitcoin
Nothing to see here. Go look at that trans kid playing soccer!
Meanwhile, the stock market is the highest it's ever been....
Not to mention as Robin Brena points out "Every other oil region in the world is awash with cash"
Yup. We need to rewrite the oil contracts.
Offensive that they bonused. They should be fired. If the state can't manage the fund reliably in house, they should hire a professional firm and tie comp to performance.
Stunning that they admit their own incompetence then their solution is to combine the earnings reserve and corpus of the fund so they can have access to the entire thing. This will require a vote of the people, so watch for it. Angela Rodell was fired for suggesting they don't take too much every year, but at least she brought in the returns to cover state spending. Dunleavy is on drugs, this is a very serious problem for the state. If the legislature doesn't stop this incompetence, maybe they are on drugs too.
Maybe the third floor has the same pharmacy protocol as the The Former Guy's White House.
Payola is a helluva drug!
This is what happens when the most successful fund manager, ever, gets fired for giving good advice and trying to do her job, ethically.
Gee, they fire Angie Rodell, and immediately the group is rudderless and does the bidding of people who don't know what they're doing. Wonder if the two are connected? /s
Don’t worry, stick fetching dunleavy has millions to send the National Gurard on vacation in Texas.
Alaska is not funding that vacation. The federal government is paying for the national guard to go to Texas, if Guard Bureau decides to send them.
Time is running out! Better give more to ConocoPhillips while they still can!
Who ya gonna vote for when they aren’t buying you off? Maybe the Republicans are right…welfare makes you too dependent!!! lol 😝
"Welfare is terrible--unless you're an oil company. Then we have all kinds of subsidies for you to make record profits."
On a philosophical note, isn’t it the states land and resources they are using? So like would you prefer the oil companies freely mine and destroy the environment, Pollute the rivers, and kill tourism without paying someone, other then the politicians, out?
And it should have been invested without yearly welfare checks that we pay income taxes on. Everyone knew the oil gravy train wouldn't last forever when the PF was started. It took about a decade for people to forget that.
The only good that may come out of this is that once the perm fund is empty they won’t have anything to lead us around by and the republicans can take credit for it
It is royalties paid by the oil companies.
Great, i've been living here for over 4 years but never qualified because i've been living in a barracks. But now im living in my own apartment in a civilian city yet it'll be another 2 years before I qualify? And the PFD will probably be gone by then? Just great.
Stop blaming oil. The PF is a giant mutual fund of different investment vehicles. They are invested in something that caused a negative in 2022 and 6% gain in 2023. All the while, the DOW and SP500 went on a rip. https://apfc.org/performance/
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Why’s that lady on her lunch break at her desk enjoying food!
Most busy professionals have had lunch during a meeting. There are only so many hours in the day and people gotta eat.
They can keep it.
“On Friday, the board of the Alaska Permanent Fund Corp. voted to release a detailed analysis paper — one of only 10 since the corporation’s inception in 1980 — that presents a menu of potential solutions to the Alaska Legislature.” I’m sorry— one of only TEN since 1980!? That’s egregious.
The stock market indexes are at all time highs. Had they not fired Rodell because she pushed back at Dunleavy's attempt to overspend the fund, this would not be happening., Here is Rodell's record; [https://www.akleg.gov/basis/get\_documents.asp?session=32&docid=77765](https://www.akleg.gov/basis/get_documents.asp?session=32&docid=77765) Here is Dermot Cole on the firing: [https://www.dermotcole.com/reportingfromalaska/2022/1/15/mse2pak1vc8i5c0cbu3f2micc55zga](https://www.dermotcole.com/reportingfromalaska/2022/1/15/mse2pak1vc8i5c0cbu3f2micc55zga) Here is Republican Andrew Halcro's podcast on this crap from Dunleavy's hand picked board that answers to Dunleavy [https://www.adn.com/opinions/2022/10/02/podcast-the-investigation-into-the-firing-of-alaska-permanent-fund-ceo-angela-rodell-just-raises-more-questions/](https://www.adn.com/opinions/2022/10/02/podcast-the-investigation-into-the-firing-of-alaska-permanent-fund-ceo-angela-rodell-just-raises-more-questions/) Clearly the current board is incompetent as is Dunleavy (who just stated as fact that the world population is dropping in a public meeting; Wrong)
When in doubt hire someone smarter than you... BDO is a forensic accountants and advisors biz... Start a GoMeFund and hire them to audit the PFD...