Newsrelease

June 24, 1998
Edmonton, Alberta

"Alberta’s Heritage Fund is growing, earning close to $1 billion in interest this year. We’ve turned the corner with the Fund and will continue to make sure it’s bigger and better than ever for the next generation of Albertans."

Alberta Heritage Fund Continues to Provide for Albertans

The Alberta Heritage Savings Trust Fund earned a net income of $947.3 million in 1997-98, up from the $932.1 million it earned the previous year. Full details of the Fund’s earnings were released today in the Fund’s annual report.

The value of the Fund increased to $12.3 billion on March 31, 1998, as $25 million of the $947.3 was retained to offset inflation. "The Fund is performing well and that’s due to this government’s restructuring and refocusing efforts. Based on the advice of Albertans, our goal is to have the Fund provide the greatest financial return on investments," said Day.

Heritage Fund 1997-98 Highlights:

• The fund earned $947.3 million in income.
• The net assets of the Fund increased to $12.3 billion.
• Over the year, $1.2 billion was transferred from the Transition Portfolio to the Endowment Portfolio. Eventually all Heritage Fund assets will be invested in the Endowment Portfolio.
• The Transition Portfolio, excluding the Alpac Loans, outperformed its benchmark by 30 basis points and the Endowment Portfolio returned 21.4 per cent versus a policy benchmark of 21.9 per cent.

The Legislature Standing Committee on the Heritage Fund, which includes both Government and Opposition members, will hold public meetings throughout the province this fall to speak directly with Albertans about the Heritage Fund’s direction and financial results.

To obtain copies of the 1997-98 Alberta Heritage Savings Trust Fund Annual Report, call Treasury Communications at (780) 427-4414.

For more information, please contact:

Trish Filevich
Director of Communications
Alberta Treasury
Telephone (780) 427-5364
e-mail: webmaster@treas.gov.ab.ca

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