Alaska’s Permanent Fund took a $3.1 billion hit during the first quarter of the fiscal year.
The Alaska Permanent Fund Corporation cites continued slow growth in the U.S. economy and political and economic difficulties abroad for the 8 percent decline.
The Alaska Permanent Fund ended the quarter with $37 billion.
The corporation has stressed that it takes a long-term approach to investing and isn’t reactive. CEO Michael Burns said the board has built a diversified portfolio that has worked the way it’s intended.
He said last fiscal year stocks were up by 30 percent while most other portfolios returned less. Burns said now the situation has reversed, with bond and real return portfolios performing positively or showing much smaller losses.