Page 32 - 2018 MHT Annual Report

Financial Summary
The Alaska Mental Health Trust Authority is charged with the perpetual management and safeguarding of trust assets for the benefit of current and future generations of beneficiaries.
The Trust’s cash assets are invested and managed by the Alaska Permanent Fund Corporation (APFC) and the State of Alaska Department of Revenue (DOR) Treasury Division, both of which invest the Trust’s money in a high-quality mix of stocks, bonds and other investments to generate income. The Trust Land Office (TLO) is responsible for managing non-cash assets, which include approximately one million acres of land, the associated natural resources, and commercial real estate assets and other facilities owned by the Trust.
TRUST REVENUES
The Trust earns revenue from two primary sources, investments and land.
Investments include the body of the Mental Health Trust Fund and reserves. Each year, 4.25 percent of a four-year average of the value of our invested assets is withdrawn to fund the Trust’s annual budget. When assets in the trust fund earn more than necessary to cover
annual spending, the remainder is applied
to reserves. Historically, annual investment earnings exceed the amount necessary to fund annual Trust activities, and as a result the reserves have expanded over time.
The Trust also manages its lands to generate revenue. Revenue associated with non- recurring resources, like the sale of a parcel of land or mineral resources, are invested to add to Trust investment earnings. Income from TLO lease or rent payments, a portion of timber sales, and earnings from Trust cash and real estate investment portfolios are considered spendable income. The revenue is used to fund the Trust’s annual budget.
The Trust anticipates continued and stable growth in the value of our assets.
TRUST BUDGET RESERVES
Since the Trust is committed to provide stable financial support to our partners, it maintains reserve accounts to ensure sustainability and beneficiary support
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