Record income for Alberta’s Heritage Fund
Strong equity markets helped push the Heritage Fund to an all-time earnings record of $2.1 billion in 2013-14.
The fund posted a 16 per cent return, the third highest since it was created in 1976. At March 31, the fund was worth $17.5 billion on a fair value basis.
“The Heritage Fund’s strong growth confirms what we have been telling Albertans for some time now—that we can grow our short-term and long-term savings and keep our balance sheet strong at the same time.”
According to the Heritage Fund’s 2013-14 Annual Report, the fund’s average annual investment return over the past five years was 12.7 per cent. The 10-year average annual return is 7.5 per cent
The Alberta Heritage Savings Trust Fund is a key part of the government’s legislated savings plan that will see Alberta’s total savings; which include the Heritage Fund, endowments and the Contingency Account; grow to $26 billion over the next three years. A portion of non-renewable resource revenue will be regularly set aside for savings, and by 2017-18, all net income earned by the Heritage Fund will remain in the fund.
The government is also implementing a renewed vision and purpose for Alberta’s savings as defined in the Savings Management Act, passed in March 2014. A portion of the Heritage Fund will be used to support funds and endowments to encourage innovation, support trades apprentices and provide government with the financial resources to take advantage of new opportunities in the future.
“As a leading polytechnic and the largest provider of trades-related programming in Canada, NAIT has an essential role in apprenticeship education and in addressing the skilled labour shortage. Support for apprentices through the Heritage Fund is an important investment in Alberta’s future.”
Under the Building Alberta Plan, our government is investing in families and communities, living within our means, and opening new markets for Alberta's resources to ensure we're able to fund the services Albertans told us matter most to them. We will continue to deliver the responsible change Albertans voted for.