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March 2007
The
Aleut Corporation is proud to report that the permanent
fund recently reached a value of $10,000,000. We should
all be proud of this significant milestone. Investing
for tomorrow is never as easy as spending today. Hats
off to those who saw the value in saving for future
generations. Your vision is paying off.
As
many of you are aware, The Aleut Corporation established
its own permanent fund on April 1, 1992. The purpose
was to invest in marketable securities so that a stable
source of cash flow could one day be made available
for shareholder dividends.
Fifteen years after
its creation, the TAC permanent fund is on the verge
of producing its first dividend.The founders of the
TAC permanent fund established policies that dictated
fund earnings were to be reinvested until the fund reached
a value of $10 million. After that, the policy provides
guidelines for distributing all future earnings.
Fifty percent of all
future earnings will be reinvested into the principal
of the fund to keep it healthy and robust. Much like
the Alaska Permanent Fund, reinvesting new earnings
from the TAC permanent fund back into the principal
will allow the fund to grow at an extraordinary rate.
It also means the principal of the fund will never drop
below $10 million.
TAC permanent fund
policy also orders 15% of all future profits after reaching
the $10 million benchmark to be given to The Aleut Foundation,
and that the remaining 35% of future profits be distributed
among shareholders in the form of an additional amount
added to the regular dividend.
Because the TAC permanent
fund only recently reached $10 million in value, it
will take time to realize and distribute future profits
to shareholders. The fund is an investment in our future
and a reminder to us all that good planning and leadership
can pay dividends for generations.
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