Alberta's Heritage Fund
Country: Canada
Coverage: Jean-Michel Neault
Established: 1976
US$ Billion: 16.6
Origin: Oil
Transparency Rating: 8
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.
Investment for Future Generations
Strengthen and diversify the economy
Improve quality of life
A 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.
Portfolio Management
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.
Strategies and 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.
Fund Mission Statement
"To provide prudent stewardship of the savings from Alberta's non-renewable resources by providing the greatest financial returns on those savings for current and future generations of Albertans." *
*http://www.finance.alberta.ca/business/ahstf/faqs.html#howishfinvested
News and Updates
4/29/2008
Savings strategy proposed to avert deficits, tax hikes
According to the Calgary Herald, "The head of a committee advising the province on how to invest its resource riches says the government must "impose" on itself a long-term savings plan rather than continue ad-hoc deposits into the provincial vault.
Today, the Heritage Fund's value stands around $16.4 billion, but is still worth less than it was in the 1980s once inflation is factored in. All told, the province has more than $30 billion in direct savings stashed away in various funds and investments."
read more: Calgary Herald
Location
Alberta Finance
Room 426, Terrace Building
9515 - 107 Street
Edmonton, Alberta, T5K 2C3
Website
Alberta Heritage Fund Website
1. All figures quoted are from official sources, or, where the institutions concerned do not issue statistics of their holdings, from other publicly available sources.
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