November 26, 2003

Heritage Fund benefits from continued market improvements

Edmonton…  The Alberta Heritage Savings Trust Fund earned $187 million in investment income in the second quarter of this fiscal year. 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 performance of the Heritage Fund over the past six months has been very positive," said Alberta Revenue Minister Greg Melchin. "The recovery of losses experienced last year confirms the importance of a long term perspective on the Fund's investment strategy through a diversified portfolio."

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.

Since the Heritage Fund was created 27 years ago it has contributed more than $25 billion to Albertans' priorities such as capital expenditures, debt reduction, health care, education and infrastructure.

• Go to the Heritage Fund 2003-04 Second Quarter Update.

For media inquiries, please contact:

Cathy Housdorff Director of Communications Alberta Revenue (780) 427-5364 (780) 719-4104 (cellular)
Dial 310-0000 for toll free access outside of Edmonton.

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