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Arizona Permanent Land Endowment Trust Fund

United States · North America · Founded 1912 · Sub-national permanent fund · Not an IFSWF member

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Focus

Arizona Permanent Land Endowment Trust Fund: what it invests in

Financial services
Public equitiesFixed income

Geography Global

Scale

Arizona Permanent Land Endowment Trust Fund: how big it is, and on what basis

USD 11.4B
Fund market valueAs of

In US dollars: about USD 11.4B. Fund reports in US dollars

10-year return 8.93% a year (to September 2025)

Transparency

Arizona Permanent Land Endowment Trust Fund: what it publishes

4.5 of 10 Band 3 of 5

Published 4 · Partly 1 · Not published 5

Our 10 item score. It measures what is public, not how well a fund is run.

Market valueS3
USD 11.4B (September 2026, approximate)
As of
10-year returnS5
8.93% a year (to September 2025)
As of
BeneficiariesS3
13
As of
Payout rateS4
2.5% (from fiscal 2026)
As of
Equity limitS4
Up to 60%
As of
Transparency scoreS3
4.5 of 10
As of

At a glance. Arizona's land endowment invests the money raised from selling State Trust Land granted at statehood, and pays out to K-12 schools, universities and 11 other beneficiaries. It was worth about USD 11.4 billion at 30 September 2026, up from USD 9.6 billion a year earlier, and has returned 8.93 percent a year over ten years. The State Treasurer invests it, with the Board of Investment as trustee. S3 S5

Key points

  • Approximate fair market value of USD 11.4 billion at 30 September 2026. S3
  • Ten-year annualised total return of 8.93 percent to September 2025. S5
  • Thirteen beneficiaries, each with its own land and fund; the Permanent Common School Fund for K-12 is the largest. S3
  • Payout from fiscal 2026 is 2.5 percent of the average market value over the previous five years. S4
  • Voters raised the payout to 6.9 percent for fiscal 2016 to 2025 under Proposition 123. S4
  • Up to 60 percent may be held in equities since Proposition 102 in 1998. S4

Interesting facts

  • Only 14 percent of Arizona land is privately held. S3
  • Its beneficiaries include a Miners' Hospital, a School of Mines and the Pioneers' Home. S3
  • Changing how it pays out or invests needs both a state constitutional change and a federal law change. S4

Mandate and goals

A permanent trust: land sale proceeds are kept as principal and invested, and a set share of value is paid each year to the beneficiary that owns each land grant. S3 S1

  • Grow and protect the permanent fund for current and future beneficiaries. S1
  • Pay steady distributions, mainly to Arizona classrooms. S3
  • Spending rule: 2.5 percent of the average monthly market value for the previous five calendar years (from fiscal 2026) S4

How it invests

IndustriesFinancial services. Sector agnostic S3
Asset classesPublic equities, Fixed income S4
StagesPublic markets S4
GeographyGlobal. Geographic split not published; the trust land itself is in Arizona S3
Direct / through funds / co-investNot published / Not published / No S3
Ticket sizeNot applicable: holdings and deal sizes are not published. S3
External managersNot published S3
Co-investment programmeNone S3

Published criteria

  • Equities capped at 60 percent of the fund. S4
  • Proceeds are invested by land grant, so each beneficiary keeps its own fund. S3

Past investments

The fund has not published a list of investments.

Case studies

Proposition 123: a bigger payout for schools S4

  • What: Voters approved raising annual distributions from 2.5 to 6.9 percent for ten years.
  • When: 2016 to 2025
  • Size: Extra 4.4 percent a year
  • Why: To put more money into K-12 classrooms without new taxes.
  • Outcome: The higher rate ran for fiscal 2016 to 2025; the rate returned to 2.5 percent in fiscal 2026.

Proposition 102: opening the fund to equities S4 S5

  • What: Voters allowed up to 60 percent of the fund in stocks.
  • When: 1998
  • Size: Up to 60 percent equities
  • Why: To give the trust a share of stocks for long-term growth.
  • Outcome: The fund has returned 8.93 percent a year over ten years to September 2025.

Investment process

The Board of Investment acts as trustee and sets policy; the Treasurer's Office runs investments. The State Land Department sells and leases the land. S3 S4

CommitteeRole
State Board of InvestmentTrustee of the endowment S3
  1. Trust land is sold or used and proceeds go to the matching permanent fund. S3
  2. The Treasurer invests the combined fund. S3
  3. Each year the payout is set from the five-year average value. S4
  4. Distributions go to the 13 beneficiaries. S3

How to approach: No intake; this is a constitutional trust managed by the state. S3

Size and returns

  • Headline size: USD 11.4B (Fund market value, as of 2026-09-30) S3
  • In US dollars: about USD 11.4B. Fund reports in US dollars
  • Return, 10 years to September 2025: 8.93 percent a year S5
  • Size over time (USD billion): September 2025 9.61, February 2026 10.1, July 2026 11.3, September 2026 11.4 S3 S5 S6 S7

Leadership

NameTitle
Kimberly YeeArizona State Treasurer S3

Governance and transparency

  • Legal basis: Arizona Constitution, Article 10, Section 7, and the federal Enabling Act of 1910 S1 S4
  • Oversight: State Board of Investment as trustee; Legislature through budget review S3 S4
  • Any change to payout, management or investment needs state constitutional and federal Enabling Act amendments. S4

Transparency score: 4.5 of 10 (band 3 of 5). Our own 10-item rubric; see the methodology page.

  • Published: total assets, long-term returns, governance and mandate documents, named leadership. S1 S3 S5
  • Partly published: regular reporting schedule. S7
  • Not published: annual return, asset allocation, geographic or sector split, holdings or deal list, audited financial statements. S3 S4 S7

History

DateEvent
1910Federal Enabling Act sets the land grant. S4
1912Statehood; trust lands granted. S1
1998Proposition 102 allows equities. S4
2016-05Proposition 123 raises payout to 6.9 percent. S4
2025-07Payout returns to 2.5 percent (fiscal 2026). S4
2025-09Value USD 9.61B. S5
2026-02Value passes USD 10B. S6
2026-09-30Value about USD 11.4B. S3

For family offices

A state constitutional trust with no co-investment or outside partnership programme. Its relevance is as a large, rules-based endowment investor in public markets. S3

Reports

Common questions

How big is the Arizona land endowment?

About USD 11.4 billion at 30 September 2026. S3

Who manages it?

State Treasurer Kimberly Yee, with the Board of Investment as trustee. S3

Who benefits?

Thirteen beneficiaries; the largest is the Permanent Common School Fund for K-12 education. S3

How much does it pay out?

2.5 percent of the five-year average value from fiscal 2026. S4

All sovereign wealth funds in North America · All sub-national permanent funds · All funds in United States

Sources

  1. S1Arizona Constitution, Article 10, Section 7
  2. S2IFSWF, members list
  3. S3Arizona State Treasurer, Permanent Land Endowment Fund
  4. S4Joint Legislative Budget Committee, Common School Fund review, fiscal 2026
  5. S5Arizona Treasury, Education Endowment Report, September 2025
  6. S6AZ Free News, Arizona state land endowment surpasses USD 10 billion, May 2026
  7. S7Arizona State Treasurer, Endowment investment performance

Disclaimer

Informational only. SovereignWealthFunds.com is an independent public-source reference. It is not affiliated with or endorsed by any fund named on it, and it is not investment, legal or tax advice. Figures are as of the dates shown next to them and may have changed; please read each fund's official pages, linked on its profile. To report an error, use the contact page. Copyright SovereignWealthFunds.com. All rights reserved.

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