Passage of Measure #3 means more long-term investments, increased fund earnings
BISMARCK, N.D. — The Legacy Fund, North Dakota’s sovereign wealth fund, is a strategic asset dedicated to securing long-term financial stability that will allow North Dakotans to benefit from the state’s natural resources for generations to come. With the passage of Measure #3, the fund’s potential is even greater because more dollars can be invested long-term.
“The Legacy Fund was created to provide financial stability and deliver sustained economic benefits for North Dakotans,” said Rep. Glenn Bosch, vice chair of the Legacy and Budget Stabilization Fund Advisory Board. “With the passage of Measure #3, we can consider more long-term investment that have the potential to increase the fund’s earnings. These increased earnings would provide additional dollars that can be used for tax relief, infrastructure, and other in-state projects.”
Since its inception, the Legacy Fund has grown to $11 billion by allocating 30% of North Dakota’s oil and gas tax revenues into carefully chosen investments. Unlike pension funds, which prioritize immediate liabilities and payout obligations, the Legacy Fund’s investments are allocated like a traditional sovereign wealth fund, focusing on sustainable and long-term growth that ensures resilience through economic cycles and preserves wealth for future generations.
Measure #3 reduced the amount of Legacy Fund principal that legislators could access from 15% to 5% during any single two-year budget cycle. To support the 15% legislative access, the fund has a high allocation to liquid investments. Liquid investments are investments that can be sold quickly. Reducing legislative access to 5% of the principal allows more of the fund to be invested in long-term assets, that have the potential to provide higher earnings over time. A study conducted by RVK, a legacy fund advisory board consultant, projected passage of the measure could increase fund earnings by $30 million in the first year.
“The Legacy Fund’s investment strategy requires a prudent, diversified portfolio that supports the financial interests of North Dakota while also favoring, where feasible, investments with a positive impact on the state’s economy,” said Lt. Governor Tammy Miller, State Investment Board (SIB) chair.
The legacy fund advisory board, in coordination with the SIB, develops and recommends changes to the Legacy Fund’s asset allocation. The SIB is responsible for the administration of the investment program with the Retirement and Investment Office (RIO) coordinating the activities.
To ensure it benefits the people of North Dakota, the Legacy Fund’s asset allocation prioritizes investments that maximize returns; it also adheres to strict investment guidelines.
“The Legacy Fund’s asset allocation is thoughtfully designed to align with the fund’s unique revenue sources and spending needs. This commitment to North Dakota’s future reflects our dedication to growth and stability,” said Jan Murtha, RIO executive director.
Over the past three bienniums, the Legacy Fund has transferred more than $1.8 billion in earnings to North Dakota’s general fund to finance a portion of state projects and provide tax relief. In June 2025, RIO will transfer an additional $601 million in earnings to the general fund. The state legislature determines how the fund earnings are spent.
For more information, please visit RIO’s website.