The Alaska Permanent Fund is arguably one of the oldest and most successfully managed sovereign wealth funds in the world.  In Alaska, if you are selling investment advisory services, you better be able to compare your investment strategy and success relative to the APFC.  www.apfc.org

I am in the process of developing a seminar in PowerPoint on our passive investment strategies and that involves creating charts.  So here is the chart:



Our "Standard Portfolio" is a five security portfolio, SPY, IWM, EFA, EEM and AGG. AGG is the second percentage in the title.  The first percentage is the stock allocation and there is a sub-allocation between the first four securities.  SPY is the largest weight, followed by EFA, IWM and finally EEM. 

Starting in October 2008 thru October 2010 the APF has a correlation to the Standard 50/50 of nearly 1.  Since then it has performed more like the Standard 70/30 portfolio. 

Why do I bring this up?  The APFC has a large staff that manages fixed income and real estate portfolios and oversees other, highly regarded investment firms which manage the majority of the $40 billion fund.  We replicate that type of high quality performance with five exchange traded funds. 

The main point of investing like professionals is to properly align investment risks with goals and expectations through the asset allocation process.  Recognition of and acceptance of the work done by Markowitz, EMH and Brinson, Hood and Beebower will lower your costs, improve your returns and should allow you to sleep at night even in these challenging economic times.

	Correlation to APFC
Standard 30/70	0.94626568
Standard 40/60	0.97378517
Standard 50/50	0.98661299
Standard 60/40	0.98861850
Standard 70/30	0.98748850