Alberta Heritage Fund

heritagefund Alberta Heritage Fund

Country: Canada

Established: 1976

US$ Billion: 15.1

Transparency Rating: 9

 Origin: Oil

Firm Investment Style: Index

Entity Structure: Fund


Summary:
The Alberta Heritage Savings Trust Fund was created in 1976 by the Alberta Heritage Savings Trust Fund Act. Initially, the fund received 30% of Alberta’s non-renewable resource royalties which comes from its vast oil wealth.

This fund was created with several goals in mind.

redbullet Alberta Heritage FundInvestment for Future Generations

redbullet Alberta Heritage FundStrengthen and diversify the economy

redbullet Alberta Heritage FundImprove quality of life

redbullet Alberta Heritage FundA Rainy Day Fund

During the early 1980s, the fund made loans to other provincial governments in Canada. Later the fund’s money was used for capital infrastructure projects. After 1987 resource royalty revenue was no longer added to the fund.

The fund was originally designed for economic development, but now primarily it is a long-term savings and investment fund.

 Strategy & Objectives:
As of 2007, the fund is invested in stocks, bonds, real estate and alternative investments, with the aim of generating revenue for the province.

Governance:
Currently being managed by the newly established Alberta Investment Management Co. (AIMco) in 2008. AIMCo was formerly part of the Ministry of Finance of Alberta before transforming into a provincial crown corporation in 2008 that is now providing investment management to a variety of public sectors.