Russell Read, chief investment officer of the Alaska Permanent Fund Corporation, is seen in an August 2016 photo provided by the corporation. (Courtesy photo)

Russell Read, chief investment officer of the Alaska Permanent Fund Corporation, is seen in an August 2016 photo provided by the corporation. (Courtesy photo)

Permanent Fund Corp. seeks new investment boss

Trustees search for someone to guide $65.4 billion state-owned corporation

The Alaska Permanent Fund Corporation is making a change at the top.

Two weeks after chief investment officer Russell Read announced his resignation, the state-owned corporation’s board of trustees voted unanimously to begin a worldwide search for his replacement.

“I thought Russell was a great hire, and I regret we’re in this position,” APFC CEO Angela Rodell said during a special meeting of the board of trustees on Tuesday.

The position will be held on an interim basis by Marcus Frampton, the corporation’s director of investments, real assets and absolute return since 2012.

Read has served at the $65.4 billion corporation’s executive level since May 2016, and his departure comes at an auspicious time for the APFC.

In Read’s first fiscal year as the fund’s investment leader, it returned 12.89 percent on its investments, overwhelmingly beating both the corporation’s target and long-term averages. Full figures for his second fiscal year (which ended June 30) have not yet been published, but as of May 31, the fund was returning more than 10 percent on an annual basis.

Earlier this year, the Alaska Legislature voted for the first time to use those investment earnings for something other than the annual Permanent Fund Dividend. As part of the state’s operating budget, the Legislature approved a withdrawal of $2.7 billion from the fund. Of that, $1 billion will pay dividends, and the remaining $1.7 billion will pay for general government expenses.

The withdrawal cuts the state’s annual deficit to about $700 million, but it increases pressure on the fund to perform. If the fund misses its performance targets while the Legislature continues withdrawals, the value of the fund will drop and the Permanent Fund risks becoming impermanent.

In Tuesday’s meeting, Rodell supported in-house hiring for a new CIO. As she explained to trustees, since she became CEO of the corporation in 2015, she has worked to improve in-house staffing.

She cautioned that outside hiring can have mixed results and be lengthy. Furthermore, she said, a new CIO will likely come with a new attitude toward investment and may want to change the corporation’s policy.

Nevertheless, the trustees concluded that it would be better to cast as wide a net as possible in order to attract the best possible candidate. They also told Rodell to work on an aggressive timeline. Where she had suggested it might take six months or more to find a replacement, the trustees suggested four and a half months.

Rodell said the corporation will begin searching for a headhunting firm to aid in the process of finding someone.

Read gave one month’s advance notice of his resignation, and his final day will be Aug. 10.


• Contact reporter James Brooks at jbrooks@juneauempire.com or 523-2258.


More in News

In this July 13, 2007, file photo, workers with the Pebble Mine project test drill in the Bristol Bay region of Alaska, near the village of Iliamma. (AP Photo / Al Grillo)
Appeals court panel orders review of EPA decision in Alaska

Review concerns decision to withdraw proposed restrictions on large-scale mining near Bristol Bay.

It's a police car until you look closely and see the details don't quite match. (Juneau Empire File / Michael Penn)
Police calls for Friday, June 18, 2021

This report contains public information from law enforcement and public safety agencies.

A former Juneau chiropractor who was indicted for multiple sexual assault charges in April was charged with more assaults in early June. (Michael S. Lockett / Juneau Empire)
Former chiropractor faces additional sexual assault charges

The former Juneau resident was indicted for five more felony charges early in June.

Interior Secretary Deb Haaland appears before the Senate Appropriations Committee, at the Capitol in Washington, Wednesday, June 16, 2021. (AP Photo/J. Scott Applewhite)
Senators press Interior Secretary Haaland on oil lease pause

Murkowski said she was flabbergasted that Haaland did not address the court ruling.

I have flies with barbell eyes, jig heads, cone heads, bead heads and no heads. I have flies with stinger hooks that trail and long-shanked salmon hooks that don’t. I have red, pink, salmon, fuchsia, cerise, purple, orange, flesh, green, olive, chartreuse, white and black flies made of feathers, chenille, hackle, marabou, flashabou and silicone. (Jeff Lund / For the Juneau Empire)
I Went to the Woods: One good fish

Three is the magic number.

This undated electron microscope image made available by the U.S. National Institutes of Health in February 2020 shows the Novel Coronavirus SARS-CoV-2, yellow, emerging from the surface of cells, blue/pink, cultured in the lab. Also known as 2019-nCoV, the virus causes COVID-19. THE CANADIAN PRESS/AP, NIAID-RML
COVID at a glance for Wednesday, June 16

The most recent state and local figures.

Louisiana Attorney General Jeff Landry speaks in front of the U.S. Supreme Court in Washington. The Biden administration’s suspension of new oil and gas leases on federal land and water was blocked Tuesday, June 15, 2021, by a federal judge in Louisiana. U.S. District Judge Terry Doughty’s ruling came in a lawsuit filed in March by Louisiana’s Republican attorney general, Jeff Landry and officials in 12 other states. Doughty’s ruling granting a preliminary injunction to those states said his order applies nationwide. (AP Photo / Manuel Balce Ceneta, File)
Federal judge blocks Biden’s pause on new oil, gas leases

The decision is a blow to Biden’s efforts to rapidly transition the nation away from fossil fuels.

It's a police car until you look closely and see the details don't quite match. (Juneau Empire File / Michael Penn)
Police calls for Wednesday, June 16, 2021

This report contains public information from law enforcement and public safety agencies.

Most Read