The Alaska Permanent Fund Corporation (APFC) has selected the FTSE RAFI US 1000 Index as the benchmark index for an approximately $1 billion allocation to U.S. large and mid-cap investment.
The APFC was created in 1976 to conserve a portion of the state's revenue from mineral resources, namely oil. The fund now has over $34.7 billion in assets, making it the 18th largest sovereign wealth fund globally.
The FTSE RAFI US 1000 Index weights index constituents by fundamental value rather than market capitalization. A constituent’s fundamental value is determined by four factors: dividends, cash flow, sales, and book value. Part of the FTSE RAFI Index Series, the US 1000 Index is based on methodology developed by Research Affiliates Inc.