McKenzie County Farmer - Archive

Scott Anderson, Chief Investment Officer for North Dakota, updated the Legacy and Budget Stabilization Fund Advisory Board this week on the state’s Legacy Fund, which topped $13 billion as of June 30, 2025. 

Shortly after, $686 million in earnings was transferred to the general fund per legislative directive, yet the fund has since rebounded above $13 billion due to market gains and ongoing oil tax deposits. The Legacy Fund, approved by voters in 2010, receives 30 percent of all oil and gas production and extraction tax revenue.

Presenting detailed pie charts from his slide deck, Anderson highlighted the fund’s diversified allocation, noting that “more colors on that wheel means… more diversification.” The current allocation closely mirrors the policy target, demonstrating effective rebalancing. Global public equity leads at $6.9 billion, followed by global fixed income ($3.748 billion), diversified real assets ($470 million), cash equivalents ($781 million), and an early-stage private equity sleeve ($52 million).

Anderson said performance has been good: over 10 years, the fund returned 7.1 percent versus a 6.4 percent benchmark, beating it by 70 basis points, enough for top-quartile ranking per consultants. Shorter periods also outperformed: 8.3 percent vs. 7.3 percent (5-year), 10.6 percent vs. 9.6 percent (3-year), and 12.7 percent vs. 12.1 percent (1-year through June 2025).

~Western Dakota
Energy Association

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