North Dakota Legacy Fund

The North Dakota Legacy Fund is a sovereign wealth fund established in 2011 by the state of North Dakota in the United States. The primary objective of the fund is to preserve a portion of the state's oil and gas tax revenues for future generations and to provide a long-term, stable source of funding for the state's various programs and initiatives. The creation of the fund was made possible by a constitutional amendment, which was approved by North Dakota voters in 2010.

The Legacy Fund receives 30% of the state's total monthly revenue from oil and gas production taxes. Once the fund's balance reaches a certain threshold, a portion of the fund's earnings can be utilized for the state budget. However, the North Dakota State Legislature must approve any expenditures from the fund with a two-thirds majority vote.

The North Dakota State Investment Board (NDSIB) is responsible for managing the Legacy Fund's investments. The board works closely with the North Dakota Retirement and Investment Office (RIO) to develop and implement an investment strategy that aligns with the fund's objectives and risk tolerance. The fund's investment portfolio is diversified across various asset classes, including stocks, bonds, real estate, and alternative investments, to minimize risk and optimize returns over the long term.

As of 2021, the North Dakota Legacy Fund has accumulated over $8 billion in assets. The fund's earnings have been used to support various programs and initiatives in the state, including infrastructure projects, property tax relief, and other priorities as determined by the state legislature.

The North Dakota Legacy Fund serves as an example of how states can leverage their natural resources to create a long-term, stable source of revenue for the benefit of current and future generations. By setting aside a portion of the state's oil and gas tax revenues, the Legacy Fund helps ensure that North Dakota can continue to invest in its communities and address its most pressing needs, even as its oil and gas reserves eventually deplete.

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