Annual Investment Plan FY 21

September, 2020

FY 2021 Annual Investment Plan 

It is with prudence and care that we present the fiscal year 2021 Annual Investment Plan.  This year’s plan is the ninth iteration of investment plans written since fiscal year 2013, and we find ourselves writing this year’s offering during one of the most uncertain economic and social environments that we can remember over 30+ years–and maybe one of the most uncertain in the last century.  Inasmuch, we offer our analyses, forecasts, conclusions and commentary with a healthy dose of reserve, and we ask our readers to accept expanded margins of error around our forecasts and allow us generous discernment regarding conclusions.  The range of potential economic and financial market outcomes for the forward period is quite wide at the moment.

Consistent with prior years, the 2021 Annual Investment Plan uses a 7-10 year forward horizon in the development of the outlook for the economy, financial markets, for the development of longer term investment themes and strategies and for the financial analysis of the Permanent funds.  It is written with a wide-ranging readership in mind.  We focus discussion on the largest of economic and financial market variables — economic growth, inflation, interest rates and the basic investment markets of stocks and bonds — with as little industry terminology and jargon as possible.  Financial analysis is limited to the two large permanent funds, the Land Grant Permanent Fund and the Severance Tax Permanent Fund, and data is simplified into easy-to-read tables.  Investment plans for the individual asset classes are presented in a structured format, to ease understanding of expected investment activity across the full portfolio for the fiscal year.

This work is the organized accumulation of investment knowledge, thought and input across as many fund fiduciaries as possible: the Council, the Council investment committee, the investment office management group and investment staff, external investment consultants and external investment managers.  It has the purpose of transparency of our investment process as a lead objective, and seeks to be informative, and educational where possible.

READ THE FULL PLAN: FY21 Annual Investment Plan