Koniag pursues a business strategy that is focused on diversification of risk.  In implementing this strategy, Koniag manages significant investments in commercial real estate, investment securities and operating companies.  Koniag pursues opportunities to maximize shareholder benefit of its bountiful surface and subsurface estate.

Investment Securities

The investment securities portfolio is invested in a variety of domestic and international equity securities (stocks) and debt securities (bonds) with the goal of maximizing the portfolio’s rate of return, while minimizing potential risk.

During 2007, Koniag engaged the services of an independent securities portfolio advisor with the goal of decreasing risk and improving the rate of return from this asset class.  As a result, Koniag made a number of changes in the structure of the securities portfolio.  The custody and management of a portion of the portfolio was moved to a different national financial institution with a lower fee structure.  The portfolio managers follow investment criteria provided by Koniag.  This criteria is comprised of desired asset allocation percentages. 

Koniag’s corporate investment securities portfolio generally maintains a mix of between 50 percent and 60 percent stocks and between 40 percent and 50 percent bonds and cash equivalents.

Operating Companies

Koniag holds investments in a diverse range of companies through its wholly owned subsidiary, Koniag Development Corporation (KDC). 

The work performed by the Koniag family of companies is grouped into six broad categories, Operations and Maintenance, Environmental Services, Logistics, Information Technology, Consulting, and Manufacturing.

Real Estate

Koniag’s real estate portfolio is comprised of office buildings, warehouses, apartment buildings, hotels and vacant land, with geographic diversity in Alaska, Washington, California, Nevada, Arizona and Idaho.  Koniag’s share of ownership in these properties ranges from less than 10 percent to 100 percent.