Investor Presentaiton

0 millions of dollars 20,000 15,000 10,000 5,000 1982 1984 1986 1988 1990 25,000 1992 40,000 35,000 30,000 1994 1996 1998 45,000 Alaska Permanent Fund Market Value (fiscal year end-balance) Alaska's Permanent Fund In 1976, Alaskans voted for a constitutional amendment mandating that part of the state's oil revenues must be deposited in a Permanent Fund.* These Permanent Fund savings have been invested in a diversified portfolio of assets including stocks, bonds and real estate. With new deposits and growth in the value of investments, the total value of the Permanent Fund grew to $40 billion by 2011. The value of the Permanent Fund fell sharply in 2002 and 2009 due to market downturns, but rebounded quickly. We can't spend the principal of the Permanent Fund-only the realized earnings. As the Permanent Fund has gotten bigger, these realized earnings have gotten bigger. Between 1998 and 2003, they exceeded the State's oil revenues. ** *The amendment requires that "at least 25 percent of all mineral lease rentals, royalties, royalty sales proceeds, federal mineral revenue-sharing payments and bonuses received by the state be placed in a permanent fund, the principal of which may only be used for income-producing investments." **Realized earnings are stock dividends, bond interest, real estate rent and the income made or lost by the sale of any of these investment assets.

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