May 19, 1976:  The Alberta Heritage Savings Trust Fund Act was given Royal Assent. When the Alberta Heritage Savings Trust Fund Act was passed in 1976, it set three objectives for the Heritage Fund: to save for the future, to strengthen or diversify the economy, and to improve the quality of life of Albertans. In accordance with the Act, the Heritage Fund received funds from two basic sources during 1976-77. Thirty per cent of the non-renewable resource revenue received by the Government of Alberta from April 1, 1976 to March 31, 1977 accrued to the Heritage Fund. This amounted to $620 million. As well, a special contribution of $1.5 billion of cash and other financial assets was transferred from Alberta's General Revenue Fund to the Heritage Fund on August 30, 1976.

1977-1982:  Between 1977 and 1982, six provinces borrowed a total of $1.9 billion from the Heritage Fund - Manitoba, Quebec, Newfoundland, New Brunswick, Nova Scotia and Prince Edward Island. These loans proved to be beneficial to both Alberta and to those provinces that were loaned the money. Those borrowing provinces benefited by using Alberta's credit rating, which is much lower than they would have paid using their own credit rating. Even with Alberta's credit rating, Alberta secured the loans at a very high interest rate - an average of 12.5 per cent. And it strengthened interprovincial bond issues.

Late 1980s:  Some money from the Heritage Fund was used for capital projects, which helped improve Albertans' quality of life by developing parks, enhancing libraries, and maintaining our forests. These projects were also used to diversify the economy and meet the needs of a growing population. Some of these projects include Alberta Heritage Foundation for Medical Research, Alberta Heritage Scholarship Fund, Alberta Children's Provincial General Hospital (Calgary), Walter C. Mackenzie Health Services Centre (Edmonton), University of Alberta Clinical Research Building, Pine Ridge Reforestation Nursery Enhancement, Alberta Family Life and Substance Abuse Foundation, renewable energy research, and applied cancer research. These projects have been paid for and benefit Albertans today.

1987:  In 1987 the transfer of natural resource royalty revenues to the Fund were stopped.

1995:  The government asked Albertans about the future of the Heritage Fund in a survey called, Can we interest you in an $11 billion decision? Of the over 50,000 responses, Albertans said to keep the Fund for future generations and focus on generating better returns on long-term investments.

1996:  The Alberta Heritage Savings Trust Fund Act was amended to reflect the changes Albertans asked for in the survey results.

1997:  Following the results from the 1995 survey, the Heritage Fund was restructured. The Fund can no longer be used by government for direct economic development or social investment purposes. A new business plan was implemented, with a plan to increase long-term investments. And a new Legislative Standing Committee operating at arms length from the government was put in place to review and approve the business plan and ensure that the objectives and goals of the Fund are met.

Fall 1998:  The government surveyed Albertans about their fiscal priorities in the "Talk it up. Talk it out." survey. Albertans gave increasing savings in the Heritage Fund an importance rating of 19.2 per cent, behind eliminating the debt, reducing taxes and increasing spending in priority areas.

Fall 2000:  The government surveyed Albertans on their fiscal priorities after the debt is eliminated in the "It's Your Money" survey. Albertans indicated that in allocating the additional savings from not having to pay interest costs, 34 per cent support allocating those savings to a budgeted savings plan, like the Heritage Fund. Tax reductions and increased program spending were the top choices. In terms of options for use of one-time unexpected revenue, for example from high oil and gas prices, 52 per cent of respondents support saving money for the future, just behind one-time tax rebates at 57 per cent and ahead of one-time spending at 29 per cent.

December 2000:  All of the loans made to provinces from 1977 to 1982 have been paid back on time and without any missed payments. The only project loans left on the Heritage Fund books are Vencap and Ridley Grain Ltd. for a total of $98.8 million, which represents 0.8% percent of the Heritage Fund's total portfolio.

2001:  May 19, 2001 marked the 25th anniversary of the Heritage Fund.

Fall 2001 - Spring 2002:  The Heritage Fund was an important part of Alberta Future Summit 2002 discussions.

June 2002:  Strategies and ideas for action from the Future Summit were presented to government. Many ideas about the mandate of the Heritage Fund, and indeed about the province, have been discussed through the Summit. Government is studying the strategies and ideas for action brought forward through the Summit and a full response to the Report to Government will be forthcoming in Fall 2002. Those strategies that can be implemented in the near term will be incorporated into 2003-06 business plans.

The Heritage Fund 2002 Annual Report was released on June 24, 2002.  The Heritage Fund performed well despite turbulence in equity markets.  The Heritage Fund increased in fair value for the fiscal year ending March 31, 2002 to $12.4 billion, a net increase of $290 million over the previous year.

August 2002:  The 2002 1st Quarter Update showed that as of June 30, 2002, the fair value of the Fund was $11.8 billion.  As part of its business plan, and through initiatives such as the Alberta Future Summit 2002 and the Financial Management Commission, Alberta Revenue's review of the province's savings policies, including the role of the Heritage Savings Trust Fund, remains ongoing.

November 2002: The 2002 2nd Quarter Update was released on November 20, 2002. As of September 30, 2002 the fair value of the Fund was $11.1 billion, down from $11.8 billion at the end of June. The Fund recorded a net loss of $576 million this quarter and $660 million over the six months ended September 30, 2002. Losses from declining world stock markets, primarily in the information technology and telecommunication services sectors, contributed to the loss. Despite second quarter losses, there are signs the Heritage Fund's rough ride could soon be over, with analysts forecasting a recovery in world equity markets. The investment strategy of the Heritage Fund is based on a long-term objective and a diversified portfolio. Fifty per cent of the fund's portfolio is in equities with the remaining 50 per cent in bonds, real estate, mortgages, private equities and absolute return strategies.

February 2003: The Alberta Heritage Savings Trust Fund made a strong recovery in the third quarter of this fiscal year, showing an increase in fair value of $522 million, as reported in the 2002 3rd Quarter Update, released on February 26, 2003. As of December 31, 2002 the fair value of the Heritage Fund is $11.6 billion, up 4.5 per cent from $11.1 billion at September 30, 2002. For the year to date, losses from equity investments of $901 million were partially offset by income from bonds, notes and short term paper totaling $215 million and real estate income of $35 million. A net loss of $578 million is still forecast for the fiscal year ending March 31, 2003. This is an improvement from the second quarter forecast of $627 million.

March 2003:  Results from the Looking Forward: Planning for the Future with the Alberta Heritage Savings Trust Fund survey released by the Honourable Greg Melchin confirm Albertans want a strong, healthy Heritage Fund that is used primarily for savings. The survey ran from October 28 to November 22, and was delivered to over 1 million Alberta households. The survey asked four questions about how Albertans feel the Fund should be used in the future. Sixty one per cent of Albertans feel the Fund should continue to operate primarily as an endowment fund, compared to 24 per cent who disagreed. More than 77,000 Albertans completed the survey, including 12,000 responding via the Internet. Alberta Revenue's business plan includes a goal to develop a renewed savings policy. These survey results, combined with recommendations from the Future Summit, will help government achieve that goal. Recommendations will be considered during the 2004 budget planning process.

June 2003: The Alberta Heritage Savings Trust Fund 2003 Annual Report shows that as of March 31, 2003 the Heritage Fund closed out the year with a fair value of $11.1 billion, a decrease of $1.3 billion from the previous year.

The Fund experienced a net loss of $894 million this fiscal year. Over the year, losses in equity markets were offset by income from investments in bonds, notes, short term paper, real estate, and absolute return strategies.

The Heritage Fund is a key component of Alberta's fiscal plan. Investment income is dedicated to the General Revenue Fund to support priority spending. As the Fund experienced a net loss, no transfers to the General Revenue Fund were made this year. The Heritage Fund, like other endowment and pension funds, was impacted by large declines in the stock market throughout the fiscal year, and in the last couple of years global equity markets have experienced some of the worst declines in equities since the 1930's.

Since the Fund was created in 1976, Albertans' have benefited from more than $25 billion that was used for capital expenditures and programs including health care, education, and infrastructure.

August 2003:  The province's largest savings account, the Alberta Heritage Savings Trust Fund, is benefiting from improved global stock markets.  In the Fund's first quarter update for 2003-04, Revenue Minister Greg Melchin announced the Fund's fair value has increased by $587 million since March 31, 2003, to $11.7 billion.  Better than expected corporate earnings and low interest rates helped strengthen the stock market, resulting in increases to the value of investments in the Heritage Fund.

In the First Quarter, the long-term fixed income portfolio had an average rate of return of 5.3 per cent and the equity portfolio averaged a 9.8 per cent return.  In determining the asset mix of investments in the Heritage Fund, levels of risk and the ability to provide long-term returns to the province are taken into consideration.  As of June 30, 2003, the Fund's asset mix included 34.2 per cent in fixed income securities such as bonds and 54.7 per cent in public equity investments.  The remaining 11.1 per cent is invested in real estate, absolute return strategies and private equities.

The Fund earned $199 million in investment income this quarter.  This money will be transferred to the province's General Revenue Fund, where it will support program spending in health care, education, and infrastructure.

November 2003: The Alberta Heritage Savings Trust Fund earned $187 million in investment income in the second quarter of 2003-04. As of September 30, the fair value of the Heritage Fund stood at $11.9 billion up from $11.1 billion at March 31, 2003. Over the past six months, the fair value of the Fund has increased by $1.2 billion, almost entirely reversing last year's decline of $1.3 billion. The increase in fair value includes transfers to the General Revenue Fund of $386 million, resulting in a net increase of $836 million. The Fund recorded $386 million in net income for the first six months of the 2003-04 fiscal year. For the year to date, it earned $184 million from investments in equities, $158 million from bonds, $21 million from real estate and $23 million from absolute return strategies. Overall, the Heritage Fund had a 3.7 per cent return from investments this quarter and showed an 11 per cent return over the past six months. Lower interest rates and better than expected corporate profits continue to fuel the market's recovery. The Canadian market is up by 6.7 per cent, the US market is up by 2.6 per cent, and the Non-North American market is up by 7.7 per cent.

The Fund's diversified investment portfolio has helped mitigate risk, particularly over the last three years, and put it in a strong position to earn higher returns with improved markets.

February 2004:  Third Quarter results show the Heritage Fund's fair value has increased to $12.4 billion up from $11.1 billion at the beginning of the fiscal year The Alberta Heritage Savings Trust Fund saw a total return of $2 billion, with $703 million being transferred to the General Revenue Fund for program spending, since the beginning of this fiscal year. This represents an 18 per cent increase, and results in a net increase to the Fund's fair value of nearly $1.3 billion, completely reversing the loss from the previous fiscal year due to the downturn in the markets.

The Heritage Fund, Alberta's largest endowment fund, continued to grow for the third consecutive quarter, returning 6.3 per cent over the quarter.

Along with the sound investment decisions of the government, the Heritage Fund has benefited from low interest rates, improved corporate earnings and increased investor confidence. The consolidated forecast net income for the end of the fiscal year is now $964 million, more than doubling the Budget forecast of $426 million.

June 2004: On June 29, in the 2003-04 Heritage Fund Annual Report, Revenue Minister Greg Melchin announced that, with an increase of $2.45 billion, the Alberta Heritage Savings Trust Fund recorded the single largest annual fair value return since its creation 28 years ago.

As of March 31, 2004, the Heritage Fund closed out the year with a fair value of $12.4 billion, compared to $11.1 billion at the beginning of the year. In addition, the Heritage Fund showed an overall rate of return on investment income of 22.5 per cent, earning positive returns from all asset classes. Of the total return of $2.45 billion, $1.13 billion was transferred to the General Revenue Fund for program spending, resulting in a net increase to the Heritage Fund's fair value of nearly $1.32 billion.

There are a number of reasons for the continuing recovery of world stock markets, ending the declining stock values over the past few years. Lower interest rates, improved corporate earnings, and increased investor confidence continued to fuel the market's recovery.

August 2004: The Alberta Heritage Savings Trust Fund contributed another $328 million to Alberta's General Revenue Fund in the first quarter of this fiscal year.  Even with slower growth in world markets this quarter, the Fund is now forecast to earn $954 million in investment income, up from the original budget forecast of $647 million, as the Fund realizes gains made last fiscal year.

At June 30, 2004, the fair value of the Heritage Fund stood at $12.1 billion down from $12.4 billion at the beginning of the quarter. Over the quarter, the increase in fair value of the Fund's investments totaling $74 million was offset by transfers to the General Revenue Fund of $328 million, resulting in a net decrease in the fair value of the Fund totaling $254 million.

The Fund's fair value will fluctuate, and after recording the largest single rise in the Fund's history last year, it is not surprising that growth of that magnitude did not occur this quarter.

November 2004:  The Alberta Heritage Savings Trust Fund contributed almost half a billion dollars to Alberta's General Revenue Fund (GRF) in the first six months of the fiscal year as reported in the 2004-05 Second Quarter Update. The Fund's net income for the six months ended September 30, 2004 amounted to $498 million.

Since March 31, 2004, the fair value of the Fund's investments increased by $33 million, however, this increase was offset by transfers to the GRF resulting in a net decrease in the Fund's overall fair value. As of September 30, the fair value of the Heritage Fund stood at $11.9 billion down from $12.4 billion at the end of the last fiscal year.

The second quarter saw record oil prices and the energy sector led all other sectors in the TSX Index, increasing by 11.2 per cent this quarter. The Canadian dollar rose to an 11 year high affecting the value of the Heritage Fund's U.S. equity investments when translated into Canadian dollars, resulting in lower investment returns.

February 2005:  During the first nine months of the fiscal year, the Alberta Heritage Savings Trust Fund contributed nearly $850 million to Alberta’s General Revenue Fund (GRF) as reported in the 2004-05 Third Quarter Update.  Net income for the Fund for the nine months ended December 31, 2004 amounted to $848 million.