A dedicated fund owned by the State of Alaska

In 1976, as the Alaska pipeline construction neared completion, Alaska voters approved a constitutional amendment to establish a dedicated fund: the Alaska Permanent Fund.

Created by a constitutional amendment

"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."

Comprised of income-producing investments

The fund is fully invested in the capital markets, diversified among various asset classes. It generates income from these investments.

Used for both savings and spending

The Legislature may spend realized fund investment earnings. Realized earnings consist of stock dividends, bond interest, real estate rent and the income made or lost by the sale of any of these investment assets. Unrealized earnings - those resulting from the change in market value of assets that are held - cannot be spent. Most spending from the fund has been for dividends to qualified Alaska residents. PFDs come from the fund's earnings, not from the fund itself. The Permanent Fund Dividend Division (a separate entity from the Alaska Permanent Fund Corporation) operates the PFD program, which the Legislature established in 1980.

Managed by a state-owned corporation

In 1980, the Legislature established the Alaska Permanent Fund Corporation to manage fund investments.

• From www.apfc.org