Alberta Unveils Bold Plan to Grow Heritage Fund to $250 Billion by 2050
Alberta is planning to grow its Heritage Trust Fund to a massive $250 billion by 2050, in the hope of securing long-term financial stability for the province. Premier Danielle Smith announced the ambitious plan, dubbed The Alberta Model, on Wednesday, outlining a roadmap that includes reinvesting all fund earnings and establishing a new Crown corporation to oversee investments.
The province will create the Heritage Fund Opportunities Corporation (HFOC) which will be responsible for managing and expanding the province’s savings. The crown corporation will work closely with global sovereign wealth funds to unlock new investment opportunities worldwide. Smith says the changes are necessary to ensure Alberta’s resource wealth benefits future generations. “Albertans deserve a Heritage Fund they can rely on—one that is focused on creating long-term growth and financial stability. We owe it to future generations,” she said.
Alberta’s rainy-day fund currently stands at approximately $24 billion, and while past governments have withdrawn investment income for general spending, Smith’s plan focuses on reinvestment. Smith says such an approach would have already grown the fund to $250 billion had it been in place since the fund’s inception in 1976 under former premier Peter Lougheed. “If all of the investment income had been reinvested, we would have about $20 billion annually in returns today,” she said.
The roadmap consists of three key pillars: strategic investments, focusing on high-growth sectors like technology, energy, and infrastructure; global partnerships, which will leverage relationships with international investors; and strong governance, ensuring transparent and responsible management of the fund’s assets. The newly created Heritage Fund Opportunities Corporation will oversee this strategy, with Joe Lougheed, son of the fund’s original architect, serving as chair. “The Heritage Fund assets belong to Albertans—present and future. Our role is to grow these investments responsibly and transparently,” Lougheed said.
Finance Minister Nate Horner emphasized the long-term impact of the initiative, noting that once the fund reaches $250 billion, its annual returns could help offset fluctuations in resource revenues. “This plan secures Alberta’s financial independence and provides stability for our children and grandchildren,” he said.
With an additional $2 billion already earmarked from Budget 2024, the fund is expected to surpass $26 billion by the end of the fiscal year. The government says this is just the beginning of a long-term strategy to ensure Alberta’s wealth continues to work for future generations.