1. (a) A manager of permanent fund assets may, with the prior approval of the executive director or chief investment officer, utilize leverage as part of the investment strategy for the portfolio for which the manager is responsible, so long as the creditor's recourse on the leverage amount is

   1. (1) not a general obligation of the permanent fund or the APFC; and

   2. (2) is limited to either

      1. (A) the permanent fund assets for which the manager acts as manager; or
      2. (B) other specific assets of the permanent fund.
2. (b) A manager of permanent fund assets shall use leverage, if at all, in a prudent manner that is consistent with leverage applied by professional asset managers using similar investment strategies.

(Eff. 1/1/2006, Register 177)

Authority: AS 37.13.120, AS 37.13.206