Consultants tell Kenai council permanent funds are positioned for modest returns; council adopts 2025 investment allocation plan

Alaska Permanent Capital Management presented a year-end review of Kenai's permanent funds on Feb. 5 and told the Kenai City Council the current portfolio is "well positioned" to meet the city's stated goals of inflation protection and distributions. The council then adopted Resolution 2025-08, the 2025 investment allocation plan, by unanimous consent.

APCM's Brandy Nikolai, chief investment officer of multi-asset strategies, told the council the permanent-fund portfolio has earned a 7.45% annualized return since APCM began managing it in September 2008 and that the firm's 10-year gross return forecast is 6.8%: "long term return gross 6.8%." She said the firm recommends no changes to the existing target allocation because it believes the mix of global equities, fixed income and alternatives provides both return potential and diversification.

The presentation covered two distinct city permanent-fund buckets: the airport land sales permanent fund and the general fund land sales permanent fund. Nikolai said the airport fund ended…