Alberta Heritage Savings Trust Fund

Overview

Alberta established the Heritage Savings Trust Fund (the Heritage Fund) in 1976 under the Alberta Heritage Savings Trust Fund Act, converting a share of the province's non-renewable resource revenue into a permanent financial asset. The Act sets the Fund's mandate: to steward those savings prudently and generate the greatest long-term financial returns for current and future generations of Albertans. The Crown in right of Alberta owns the Fund, and ultimate authority rests with the President of Treasury Board and Minister of Finance. Net financial assets stood at C$31.9 billion ($23.1bn) on 31 December 2025.

In January 2025 the Government of Alberta published Renewing the Alberta Heritage Savings Trust Fund, which reaffirmed the Fund's policy purpose, set a growth target of C$250 billion by 2050, and confirmed the commitment to reinvest investment income rather than spend it.

Investment strategy

The Fund's Statement of Investment Policies and Goals (SIP&G) sets its long-term objectives, strategic asset allocation targets, permitted ranges, benchmarks and risk parameters. Investment decisions rest on economic and financial grounds alone, with the objective of maximising risk-adjusted returns over the long term within a defined risk tolerance.

The Fund invests in a diversified, actively managed global portfolio and applies sound portfolio management principles, including diversification across asset classes, disciplined rebalancing, liquidity management, and a balance of active and passive strategies. Current practice does not involve material leverage, and derivatives serve risk management or efficient portfolio structuring rather than speculative purposes. The Fund applies no non-financial or non-economic mandates; were any introduced, the SIP&G would document them and Alberta would disclose them publicly.

The SIP&G contains a formal proxy voting policy. For assets managed by Alberta Investment Management Corporation (AIMCo), the Fund exercises ownership rights under AIMCo's published Responsible Investment Policy and Proxy Voting Guidelines, with voting decisions based on economic and financial considerations.

Management and Oversight

Legislation, ministerial orders and investment management agreements separate ownership, oversight and investment management. The Minister delegates authority to the board of the Heritage Fund Opportunities Corporation (HFOC), a Crown corporation and agent of the Crown that acts as the Fund's investment manager of record. HFOC approves the SIP&G, monitors compliance, oversees portfolio construction and risk, manages a designated portion of the Fund directly, and directs transfers between managers. AIMCo manages the portions allocated to it under a separate investment management agreement. Board appointments follow a skills-based recruitment process under the Alberta Public Agencies Governance Act.

The Standing Committee on the Alberta Heritage Savings Trust Fund, an all-party committee of the Legislative Assembly, reviews quarterly results, approves the audited annual report, evaluates performance against objectives and holds public meetings to report to Albertans. The Auditor General of Alberta audits the Fund's financial statements, which follow Canadian Public Sector Accounting Standards. Alberta publishes quarterly reports within two months of each quarter end.

Under the Sustainable Fiscal Planning and Reporting Act, Alberta must direct 50% of annual surplus cash to repaying maturing public debt or contributing to the Heritage Fund, and the Fund retains all net investment income it earns. Withdrawals are prohibited unless Treasury Board specifically authorises a transfer to the General Revenue Fund.

Santiago Principles

The Heritage Fund has completed a self-assessment against the 24 Santiago Principles. The HFOC board oversees ongoing compliance, reviews implementation on a scheduled basis, incorporates feedback from IFSWF peer review, and reports the results to the President of Treasury Board and Minister of Finance and to the Standing Committee.