Alberta Heritage Savings Trust Fund

The Alberta Heritage Savings Trust Fund was established in 1976 by Premier Peter Lougheed to save a portion of Alberta’s oil and gas royalties for future generations. The fund currently holds approximately $18 billion in assets, managed by Alberta Investment Management Corporation (AIMCo), one of Canada’s largest institutional investment managers.

Since its creation, the fund has contributed over $45 billion in investment income to Alberta’s general revenues. However, contributions to the fund from resource royalties were suspended in 1987, and the fund has grown primarily through retained investment earnings since then.

Investment Strategy

The Alberta Heritage Fund maintains a diversified portfolio designed to generate stable, long-term returns while preserving capital. The strategic asset allocation spans public equities, fixed income, real estate, private equity, and infrastructure.

Public equities represent the largest allocation, invested across Canadian, U.S., and international markets. The fixed income portfolio includes government and corporate bonds, providing stability and liquidity. AIMCo manages the fund’s investments alongside those of other Alberta public sector pension and endowment clients, providing economies of scale in areas like alternatives and active management.

The fund’s investment policy targets a real rate of return sufficient to preserve the fund’s purchasing power while generating income for the province. AIMCo’s total assets under management exceed $160 billion across all clients, giving the Heritage Fund access to investment capabilities and deal flow that would be difficult to achieve independently.

Private Markets Approach

Through AIMCo, the Heritage Fund gains exposure to a broad private markets program. Private equity investments include commitments to global buyout, growth equity, and venture capital funds, as well as co-investments and direct equity positions. AIMCo has built relationships with established GPs across North America, Europe, and Asia-Pacific.

Real estate holdings span office, retail, industrial, and residential properties, with significant Canadian and international exposure. AIMCo manages one of the largest real estate portfolios among Canadian institutional investors, including direct ownership stakes in major properties.

Infrastructure investments target regulated utilities, transportation, energy, and social infrastructure assets in developed markets. AIMCo has participated in several large-scale infrastructure transactions, often alongside other institutional co-investors.

The fund’s alternatives allocation has grown over the past decade as AIMCo has expanded its private markets capabilities and direct investment activity. Co-investments alongside GP partners have become an increasingly important channel for deploying capital efficiently.