Alabama Trust Fund

United States – Alabama US$ 2.5 billion
Established: 1985
Transparency Rating: n/a		 Origin: Oil & Gas
Firm Investment Style: n/a
Entity Structure: Fund

 

Summary
The fund is funded by royalty payments that are received each month from oil and gas companies. 65% of those royalties remain in the assets of the Alabama Trust Fund each year.

Background
In 1978, major deposits of natural gas were found offshore in Mobile Bay. In 1982, the voters of Alabama approved the creation of the Alabama Heritage Trust Fund. This fund was funded by the offshore gas deposits. In 1985, the voters passed a public referendum to create the permanent fund called the Alabama Trust Fund.

Strategy & Objectives
The fund is invested in both fixed income and equities.

Governance
It is under treasury of the State of Alabama. The fund is managed by external managers chosen by the Board of Trustees.