BISMARCK, N.D. (NewsDakota.com) – The North Dakota State Investment Board (SIB) members emphasize their commitment to transparency in managing the state’s Legacy Fund, while urging that any proposed legislative measures should safeguard the fund’s stability, growth, and in-state investment program, a media release states.

Lt. Gov. Tammy Miller, SIB chair, highlighted the board’s priority to manage the fund responsibly to support North Dakota’s future. She noted that with oversight from the Retirement and Investment Office (RIO), the Legacy Fund’s management focuses on preserving principal, ensuring strong returns, and adhering to fiduciary responsibilities.

Created in 2010 and valued at $11 billion, the Legacy Fund serves as a sovereign wealth fund to secure North Dakota’s financial future. A portion of state oil and gas tax revenues is deposited into the fund, which is invested to provide returns benefiting state residents, even amidst industry fluctuations.

The SIB emphasizes diversification as a key part of its strategy, following the prudent investor rule, according to State Treasurer Thomas Beadle, an SIB member and chair of the board’s Investment Committee. With only 2.77% of funds allocated to China – a similar strategy to other major sovereign wealth funds – the SIB diversifies investments globally, with 8% of funds invested within North Dakota.

All investments strictly follow federal regulations, including guidelines from the U.S. Department of the Treasury’s Office of Foreign Asset Control, according to the SIB. RIO Executive Director Jan Murtha emphasized that transparency and prudent oversight are central to the fund’s management, adding that the portfolio is closely monitored for compliance with investment guidelines.

While some sensitive investment data remains confidential under state law, RIO shares Legacy Fund information as fully as permitted. The fund is managed within policies set by the Legacy and Budget Stabilization Fund Advisory Board, which includes six state legislators and four citizen members.

Thanks to these policies, the Legacy Fund has provided North Dakota taxpayers with a five-year annualized return of 6.6%, surpassing inflation and its policy benchmark. The SIB and RIO regularly engage the public to educate on the fund’s management and investments.