Albertans have benefited from the strength of our province’s natural resources, and now, our government is taking decisive action to ensure that future generations continue to prosper.
Premier Danielle Smith and Minister of Finance Nate Horner have announced a bold initiative to grow the Alberta Heritage Savings Trust Fund to more than $250 billion by 2050. This strategic move reinforces our government’s commitment to financial stability, reduced reliance on volatile resource revenues, and long-term economic prosperity.
The Alberta Heritage Savings Trust Fund was originally established in 1976 to safeguard a portion of our province’s resource revenues for the benefit of future generations.
Unfortunately, allocations to this fund were reduced in the 1980s, and by 1987, contributions were removed entirely.
Despite this, the fund has played a critical role in supporting the province’s financial stability. In fact, Treasury Board and Finance estimated in 2021 that if all investment earnings had been retained, the fund could have grown to approximately $270 billion.
Now, our government is taking proactive steps to restore the fund’s original vision and ensure Alberta’s wealth is secured for decades to come.
A key component of this new plan is the creation of the Heritage Fund Opportunities Corporation (HFOC).
This new provincial corporation, created under the Business Corporation Act, will be responsible for growing the Heritage Fund through world-class investment strategies. By operating at an arm’s length from the government, the corporation will have the flexibility to maximize financial returns and reinvest earnings all while strengthening Alberta’s long-term financial outlook.
In addition, HFOC will collaborate with global sovereign wealth funds, unlocking new opportunities for high-value investments.
Our government has already shown its commitment to this initiative by allocating $2 billion to the Heritage Fund in Budget 2024.
The HFOC will manage these investments independently, ensuring that Albertans see the best possible returns. It’s important to note that while the HFOC will work in cooperation with the Alberta Investment Management Corporation (AIMCo), AIMCo’s operations will remain unchanged. This means Albertans can be confident in both the stability and strategic growth of the fund.
Premier Smith’s long-term financial roadmap envisions the Heritage Fund growing to between $250 billion and $400 billion by 2050.
This ambitious goal underscores this government’s commitment in reducing Alberta’s reliance on unpredictable resource revenues. Instead, this plan will create a sustainable financial legacy, ensuring the province remains resilient through economic fluctuations.
Albertans deserve a government that thinks beyond short-term gains and prioritizes long-term.
prosperity.
By revitalizing the Heritage Fund and implementing sound investment strategies, we are securing Alberta’s economic future and ensuring that our province remains strong for generations to come. This announcement is not just about numbers on a balance sheet—it’s about preserving the Alberta advantage and delivering real, lasting benefits for all Albertans.
The future is bright, and with this plan in place, we are building a financial foundation that will support our province’s success for decades to come.
- MLA Jackie Lovely can be contacted at her constituency office located at #104, 4870 51 Street, Camrose, AB, T4V 1S1, or by telephone at 780-672-0000.
