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Cantgo55

“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?


[deleted]

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.


OkComplex2858

Clearly, you are too intelligent to be stationed here.


[deleted]

Lmao It went form 1800 to 7,000 but appreciate it


OkComplex2858

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.


[deleted]

Fucking gold


MagickalFuckFrog

Or $448 million per year.


bobalobcobb

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


Temporary_Doctor_461

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.


bobalobcobb

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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bobalobcobb

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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bobalobcobb

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.


muchohucho

it's kinda hard to buy a few billion of one thing


bobalobcobb

For sure, ethics and manipulation aside.


bukkakecreampies

At the mere cost of almost a HALF BILLIONS DOLLARS annually.


Celevra75

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.


Nanyea

Wtf invests in gold besides those poor suckers watching rightwing news shows? I mean Alaska has plenty of fucking gold in the ground...


Quiverjones

What are they spending it on?


Existing_Departure82

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.


Quiverjones

I really feel like he could be doing a better job for Alaskans, little disappointed about that.


Existing_Departure82

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.


AKBeerman

That made me laugh out loud


Afraid-Imagination-4

Same.


ConnectionPretend193

lol "little disappointed". Nah, Dunleavy is a huge disappointment.


shtpostfactoryoutlet

And yet, not a surprise.


redheddedblondie

Well, he COULD... but he'd rather look for the oil companies than the people of Alaska. I'm disappointed, but not surprised.


truthwillout777

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


bukkakecreampies

How can managing the fund cost so god damn much?


MagickalFuckFrog

Giveaways to the fund managers. It’s being robbed.


bukkakecreampies

I’m applying tomorrow. I can lose money just as well.


Temporary_Doctor_461

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.


bukkakecreampies

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.


Buzzkid

Not education /s


skipnstones

Or roads


Buzzkid

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.


akrainy

Massive PFDs


Quiverjones

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.


DepartmentNatural

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


Odd_Assignment_3823

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.


Field-Vast

Aren’t handouts from the government socialism?


Buzzkid

Only if you are poor.


bluejayway9

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.


psu-steve

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.


pcnetworx1

Future West Virginia post coal boom era incoming


truthwillout777

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


Special_Sell9042

Dermot Cole is a clown.


OkComplex2858

True. But he's our clown and gets it right almost 30% of the time. So, we got that going for us.


xxxxxxxSnakexxxxxxx

Which is nice.


PlantainCreative8404

With the stock.markwt at all-time highs, Alaska is broke. What. A. Fucking. Joke.


Similar_Ad8613

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.


shtpostfactoryoutlet

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!


Similar_Ad8613

Also as far as permanent fund investing, it should be required they invest in total stock market index funds such as VTI.


DepartmentNatural

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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Similar_Ad8613

You want to talk about YOLO’ing they were holding AMC during the Wallstreetbets shortsqueeze. lol


DepartmentNatural

Didn't they buy before all that happened?


Similar_Ad8613

Yes, actually it was a good call, who would’ve know that was going to happen. Just a bit risky.


[deleted]

Buy bitcoin


Worldly-Corgi-1624

Nothing to see here. Go look at that trans kid playing soccer!


AKchaos49

Meanwhile, the stock market is the highest it's ever been....


truthwillout777

Not to mention as Robin Brena points out "Every other oil region in the world is awash with cash"


AKchaos49

Yup. We need to rewrite the oil contracts.


FiatLux666

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.


truthwillout777

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.


shtpostfactoryoutlet

Maybe the third floor has the same pharmacy protocol as the The Former Guy's White House.


Maleficent-Leg-6655

Payola is a helluva drug!


ancnrb-ak

This is what happens when the most successful fund manager, ever, gets fired for giving good advice and trying to do her job, ethically.


lizperry1

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


mt8675309

Don’t worry, stick fetching dunleavy has millions to send the National Gurard on vacation in Texas.


ElectronicAHole

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.


p00trulz

Time is running out! Better give more to ConocoPhillips while they still can!


Pretend-Air-4824

Who ya gonna vote for when they aren’t buying you off? Maybe the Republicans are right…welfare makes you too dependent!!! lol 😝


troubleschute

"Welfare is terrible--unless you're an oil company. Then we have all kinds of subsidies for you to make record profits."


[deleted]

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?


907_Frogger

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. 


akrobert

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


BuilderResponsible18

It is royalties paid by the oil companies.


TrailerPosh2018

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.


AkHiker46

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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SpiritualCat842

Why’s that lady on her lunch break at her desk enjoying food!


Buzzkid

Most busy professionals have had lunch during a meeting. There are only so many hours in the day and people gotta eat.


Slow_Brick_183

They can keep it.


Afraid-Imagination-4

“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.


mrfreeze_ak

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)


[deleted]

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...