Administration January 7, 2004

Alaska Fund Takes $500M Hedge Fund Position

July 1, 2004 (PLANSPONSOR.com) - State of Alaska pension officials are following many of their public pension brethren into the hedge fund space.
Reported by

The Alaska State Pension Investment Board tapped five hedge fund managers and decided to give each $100 million to invest, with the assets coming from the system’s $2.2 billion fixed income portfolio, according to Hedgeco.Net. The Alaska State Pension fund manages about $12.2 billion in pension assets.

The five managers are:

  • Cadogan Management
  • Mariner Investment Group
  • Quellos Capital Management
  • UBS AgriVest
  • Hancock.

The fund also recently made some changes in its allocation ratios; about 2% of assets were allocated to high-yield bonds, while the domestic fixed-income allocation was reduced from 30% to 24%. Further, domestic large-cap equity was cut from 31% to 30%and international fixed income was reduced to 2% from 3%.

The Alaska State Investment Board invests the funds of the state defined-benefit pension plans: Public Employees Retirement System, Teachers’ Retirement System, Judicial Retirement System and Alaska National Guard and Alaska Naval Militia Retirement System. The agency also selects and monitors appropriate investment options for the Supplemental Benefits Annuity Plan and the Deferred Compensation Plan.

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