Anchorage trust posts strong returns; dividend likely at least $17 million

Trust Fund Board Chair Mr. Slifka told the Anchorage Budget and Finance Committee on March 19 that the municipal trust produced strong investment returns in 2024 and that the annual dividend will likely be higher than last year.

"The returns for all of '25 were about 15% almost exactly in line with the benchmarks before fees," Mr. Slifka said, adding that the three-year average was nearly 12% and that over the last three years the trust earned a return roughly 7% above the board's inflation-plus-4% target. He said the trust held "almost $500 million" at the end of February and that preliminary estimates based on the March 31 valuation indicate the dividend "will be probably at least 17 million." The figure is roughly $500,000 higher than the previous year, Mr. Slifka said.

The chair described the dividend payout as a policymaker-set, codified practice intended to balance support for current municipal needs and intergenerational equity. "That lives in code," Mr. Slifka told the committee when asked whether the 4% payout was policy or ordinance. He also cautioned that strong recent markets may not continue indefinitely.

Committee members asked whether near-term market volatility could threaten the payout; Mr. Slifka responded that the board was confident it could sustain the 4% distribution because the portfolio is diversified and holds about 2% in cash to meet semiannual payouts. He noted the board has appropriated distributions twice a year around the end of June and the end of December.

Mr. Slifka said the board will present an item in the coming weeks to appropriate an additional roughly $83,000 tied to higher-than-expected dividend receipts and noted governance and staffing changes: the board recently hired Kevin Louie as director of investment operations (starting next month), elected Mr. Slifka as chair and Julie Farley as vice chair, and thanked Jeff Sins for his service as vice chair ahead of his retirement.

The committee did not take formal action on the trust report at the meeting. The trust board's next meeting is scheduled for March 31, when the March 31 valuation will be available and the dividend amount will be set.