The North Dakota Retirement and Investment Office (RIO) generated more than $3.7 billion in earnings for the State Investment Board’s (SIB) client funds in FY 2026. The investments outperformed their SIB-approved benchmarks producing $281 million in excess returns.
The SIB oversees the investment of the assets of North Dakota’s Legacy Fund, Public Employees Retirement System (PERS), Teachers’ Fund for Retirement (TFFR) and Workforce Safety & Insurance (WSI), and two dozen smaller government funds. RIO administers the investment program.
“These results reflect the dedication, skill, and disciplined management of the funds the Retirement and Investment Office manages on behalf of the State Investment Board,” said Gov. Kelly Armstrong, SIB chair. “Every dollar of added return benefits North Dakotans, strengthening the funds that support public employees, educators and injured workers while contributing to the long-term prosperity of our state.”
The SIB’s total assets under management have grown from $23.6 billion to more than $29 billion in just two years. The program’s performance results are independently verified and reviewed to ensure accuracy, accountability and transparency.
Benchmarks are market-based performance standards used to evaluate each fund’s investment results relative to its objectives and risk profile.
FY2026 Client Fund Performance
| Fund Balances as of 6/30/2026 | Net Investment Income | Excess Returns | |
| Legacy Fund | $15,103,474,312 | $2,129,473,425 | $162,460,363 |
| PERS | $5,598,957,404 | $773,490,536 | $52,389,479 |
| TFFR | $4,029,167,487 | $518,685,572 | $38,716,061 |
| WSI | $2,407,514,204 | $193,791,761 | $15,868,699 |
| All Assets Under Management | $29,084,712,615 | $3,759,839,451 | $281,081,824 |
How strong investment performance benefits North Dakotans
Over the past four bienniums, $2.5 billion in Legacy Fund earnings was transferred to the state for the Legislature to appropriate. During the most recent biennium, the sovereign wealth fund’s earnings funded tax relief for 164,000 property owners. Preliminary estimates project $894.8 million will be transferred in 2027. Earnings above the amount transferred are added to the fund’s principal, contributing to its long-term growth.
Strong investment performance is helping to close funding gaps in the state’s largest pension plans, ensuring retirement benefits are paid as promised to the more than 80,000 PERS and TFFR members.
- Over the fiscal year, TFFR’s funded ratio increased from 73.4% to 74.7%. The plan is expected to be fully funded by 2042.
- PERS Main System’s funded ratio increased from 71.3% to 73.1%. In addition to the excess returns RIO generated, the state provided lump-sum payments of $25 million in July 2025 and $65 million in October 2026. The plan is expected to be fully funded in 2056.
When WSI investment returns exceed the amount needed to pay future claims and meet surplus requirements, state law requires that excess funds be returned to businesses as dividends. WSI estimates that $91 million will be returned to businesses this year.
The SIB’s 24 smaller client funds, including state reserve and insurance funds, municipal funds and endowments, shared more than $11 million in excess returns. Because they are invested alongside the larger funds that RIO manages, they benefit from the scale of the program, paying lower investment fees.
“Over the past four years, the Retirement and Investment Office has strengthened the State Investment Board’s program by moving the management of certain investments in-house, enhancing risk oversight and implementing advanced analytics and systems,” said RIO Executive Director Jodi A. Smith. “These improvements have increased our operational efficiency and reduced costs, helping the agency deliver above-benchmark returns for North Dakota’s public funds.”
The agency estimates that its internal management and direct investment strategies generated approximately $13.2 million in investment management fee and transaction cost savings over the fiscal year, helping to deliver stronger results for North Dakota’s public funds.