North Dakota Legacy Fund

United States · North America · Founded 2010 · Sub-national permanent fund · Not an IFSWF member

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Focus

North Dakota Legacy Fund: what it invests in

Infrastructure and utilitiesReal estateFinancial servicesTechnology

Public equitiesFixed incomePrivate equityPrivate creditInfrastructureReal estate

Geography Domestic and global

Scale

North Dakota Legacy Fund: how big it is, and on what basis

USD 15.10B

Net assets or equityAs of 2026-06-30

In US dollars: about USD 15.1B. Reported in US dollars.

Fiscal 2026 return 17.26% (net; benchmark 16.18%)

Transparency

North Dakota Legacy Fund: what it publishes

9.0 of 10 Band 5 of 5

Published 8 · Partly 2 · Not published 0

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

Net positionS4: USD 15.10B (30 June 2026, preliminary); As of 2026-06-30
Fiscal 2026 returnS5: 17.26% (net; benchmark 16.18%); As of 2026-06-30
5-year returnS5: 8.32% (net, to June 2025); As of 2026-06-30
Oil and gas tax shareS3: 30%
Global equityS5: 58.9% (policy 53.5%); As of 2026-06-30
In-state investmentsS5: USD 525M (3.5%; policy 8%); As of 2026-06-30

At a glance. The North Dakota Legacy Fund saves 30 percent of the state's oil and gas tax revenue for future generations. It held a net position of USD 15.10 billion at 30 June 2026 and returned 17.26 percent net in fiscal 2026. The State Investment Board invests it mainly through external managers, with an in-state programme that funds North Dakota loans, infrastructure and growth companies. S4 S5 S3

Key points

Net position rose from USD 13.01 billion to USD 15.10 billion in fiscal 2026 (preliminary, unaudited). S4
Returned 17.26 percent net in fiscal 2026 against a 16.18 percent policy benchmark. S5
Net returns to June 2025: 12.70 percent for one year, 10.58 percent over three years and 8.32 percent over five. S5
Allocation: global equity 58.9 percent, fixed income 29.5, real assets 7.6, in-state 3.5, private equity 0.6. S5
In-state investments of USD 525 million include Bank of North Dakota CDs, an infrastructure loan fund and a growth equity fund. S5
Principal can be spent only by a two-thirds vote of each legislative house, capped at 5 percent per biennium. S1
Received USD 654.3 million of new units in fiscal 2026. S4

Interesting facts

Earnings, as defined in law, pass to the state general fund at the end of each two-year budget period. S3
The fund runs USD 1.4 billion of equities internally, 9.3 percent of assets. S5
The 1889 Growth Fund, named for the year of statehood, invests in North Dakota companies. S5

Mandate and goals

Oil and gas revenue will arrive over a limited period, so the fund defers 30 percent of it to benefit future generations. The aim is to keep the real value of principal and grow it, maximising total return at an appropriate level of risk. S1

Maintain the real value of principal with low risk tolerance for its loss. S1
Grow the fund and maximise total return for an appropriate level of risk. S1
Beat the policy benchmark over time, net of fees. S1
Support North Dakota through a targeted in-state investment programme. S5
Return target: Performance is measured against a policy benchmark; no fixed return target is published. S1

How it invests

Industries	Infrastructure and utilities, Real estate, Financial services, Technology. Sector agnostic S5
Asset classes	Public equities, Fixed income, Private equity, Private credit, Infrastructure, Real estate, Cash and money markets S5
Stages	Public markets, Buyout, Growth, Credit, Infrastructure, Real estate S5
Geography	Domestic and global. US equities 36.3 percent and international equities 22.0 percent of the fund; in-state programme in North Dakota S5
Direct / through funds / co-invest	No / Yes / No S5
Managed in house	9.3 percent S5
Ticket size	No ticket size is published; private fund holdings range from under USD 10 million to about USD 260 million. S5
External managers	T. Rowe Price, Arrowstreet, LA Capital, CC&L, WorldQuant, Two Sigma and private market managers S5
Co-investment programme	No co-investment programme described S3

Asset mix: Global equity 58.9%, Global fixed income 29.5%, Global real assets 7.6%, In-state investments 3.5%, Private equity 0.6% (as of 2026-06-30) S5

Past investments

Investment	Type	Sector	Stage	Amount
T. Rowe Price equity mandate. Largest external manager mandate at 30 June 2026. S5	Fund commitment	Multi-sector	Public markets	USD 1,604M
Arrowstreet US and international equity. Two mandates: USD 648 million US all cap and USD 900 million international. S5	Fund commitment	Multi-sector	Public markets	USD 1,548M
Cerberus ND Private Credit Fund. Largest private credit holding; returned 6.39 percent in fiscal 2026. S5	Fund commitment	Multi-sector	Credit	USD 262M
Ares ND Credit Strategies. Dedicated credit vehicle for the fund. S5	Fund commitment	Multi-sector	Credit	USD 219M
Sixth Street Partners TAO. Flexible credit mandate; returned 24.31 percent in fiscal 2026. S5	Fund commitment	Multi-sector	Credit	USD 148M
Macquarie Infrastructure Partners IV and V. Largest infrastructure exposure across two Macquarie funds. S5	Fund commitment	Infrastructure and utilities	Infrastructure	USD 261M
JP Morgan Infrastructure Investments Fund. Open-ended core infrastructure fund. S5	Fund commitment	Infrastructure and utilities	Infrastructure	USD 121M
ISQ Global Infrastructure Funds II and III. Two I Squared Capital infrastructure funds. S5	Fund commitment	Infrastructure and utilities	Infrastructure	USD 186M
Invesco Core Real Estate USA. Core US property fund. S5	Fund commitment	Real estate	Real estate	USD 175M
Bank of North Dakota Match Loan CDs. In-state certificates of deposit that support Bank of North Dakota lending. S5	Direct investment	Financial services	Credit	USD 274M
Legacy Infrastructure Loan Fund. In-state fixed income that funds local infrastructure loans. S5	Direct investment	Infrastructure and utilities	Infrastructure	USD 135M
50 South Capital 1889 Growth Fund. In-state equity fund for North Dakota businesses; returned 19.78 percent in fiscal 2026. S5	Fund commitment	Multi-sector	Growth	USD 116M

The fund does not publish investment dates or amounts for these holdings.

Case studies

Investing at home: the in-state programme S5 S3

What: A USD 525M sleeve of CDs, infrastructure loans and growth equity aimed at North Dakota.
When: Fiscal 2026
Size: USD 525M
Why: Policy targets 8 percent in-state to support the state economy while earning a return.
Outcome: Returned 16.28 percent in fiscal 2026.

Building a private credit sleeve S5

What: Nine credit funds with Ares, Cerberus, Sixth Street, PIMCO and others now total USD 860M.
When: To June 2026
Size: USD 860M
Why: Policy sets 10 percent for private credit as part of real assets and income.
Outcome: Returned 9.11 percent in fiscal 2026.

Investment process

The Legacy and Budget Stabilization Fund Advisory Board sets asset allocation and policy. The State Investment Board selects managers and invests under the Prudent Investor Rule; RIO staff run day-to-day operations. S3 S1

Committee	Role
Legacy and Budget Stabilization Fund Advisory Board	Client board; sets allocation S3
State Investment Board	Invests the fund and hires managers S3

The Advisory Board sets policy targets in the Investment Policy Statement. S1
RIO staff and consultants research and recommend managers. S3
The State Investment Board approves hires and monitors results each quarter. S3
Earnings move to the general fund at the end of each biennium. S3

How to approach: Managers are hired through State Investment Board processes; materials are posted on the RIO site. S3

Size and returns

Headline size: USD 15.10B (Net assets or equity, as of 2026-06-30) S4
In US dollars: about USD 15.1B. Reported in US dollars.
Market value in performance report: USD 15,110.2M (Fair value of state company holdings, as of 2026-06-30) S5
Return, fiscal year to June 2026: 17.26 percent (net; benchmark 16.18 percent) S5
Return, 3 years to June 2025: 10.58 percent a year S5
Return, 5 years to June 2025: 8.32 percent a year S5
Staff: Run by Retirement and Investment Office staff, who also manage state pension assets S6
Size over time (USD million): 2025-09-30 13,119.1, 2025-12-31 13,608.8, 2026-03-31 13,669.0, 2026-06-30 15,110.2 S5

Leadership

Name	Title
Scott Anderson	Chief Investment Officer, Retirement and Investment Office S6
Jodi Smith	Executive Director, Retirement and Investment Office S6

Governance and transparency

Legal basis: North Dakota Constitution, Article X, Section 26 (2010) S1
Oversight: Legacy and Budget Stabilization Fund Advisory Board and the State Investment Board S3
Auditor: Audited annually; monthly statements are preliminary S4
Not an IFSWF member. S2
Investment Policy Statement updated for 2026. S1

Transparency score: 9.0 of 10 (band 5 of 5). Our own 10-item rubric; see the methodology page.

Published: total assets, annual return, asset allocation, holdings or deal list, audited financial statements, governance and mandate documents, named leadership, regular reporting schedule. S1 S4 S5 S6
Partly published: long-term returns, geographic or sector split. S5

History

Date	Event
2010	Voters approve the constitutional amendment. S1
2011-07-01	Tax transfers begin on production after 30 June 2011. S1
2025-06-30	Net position USD 13.01B. S4
2026-06-30	Net position USD 15.10B after a 17.26 percent year. S4 S5

For family offices

The fund has no private investor programme. Families meet it as fellow LPs in the private credit, infrastructure and real estate funds it backs, or in North Dakota through its in-state growth fund. S5

Co-investing alongside the 1889 Growth Fund in North Dakota companies. S5
Investing in the same private market funds the fund holds. S5

Reports

Financial statements, June 2026: https://www.rio.nd.gov/sites/www/files/documents/assets/202606finlegacy.pdf S4
Investment performance report, June 2026: https://www.rio.nd.gov/sites/www/files/documents/assets/202606perlegacy.pdf S5
Investment Policy Statement 2026: https://www.rio.nd.gov/sites/www/files/documents/PDFs/SIB/Reports/legacyfundips2026.pdf S1

Common questions

How big is the Legacy Fund?

USD 15.10 billion net position at 30 June 2026 (preliminary). S4

Where does the money come from?

30 percent of North Dakota oil and gas production and extraction taxes. S3

How did it perform in fiscal 2026?

17.26 percent net, against a 16.18 percent benchmark. S5

Can the principal be spent?

Only with a two-thirds vote of each legislative house, up to 5 percent of principal per biennium. S1

Who manages it?

The State Investment Board, with Scott Anderson as Chief Investment Officer of RIO. S6 S3

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Sources

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