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State Investment Board raises Legacy Fund “In-State Investing Commitment” to a record high of $400 million with a new $100 million funding commitment

Bank of North Dakota to expand in-state loan program from $300 million to $400 million

BISMARCK, N.D. – The North Dakota State Investment Board (SIB) dedicated an additional $100 million in Legacy Fund investments to providing cost-efficient financing to companies seeking to develop new businesses and infrastructure in North Dakota – one of several actions taken by the board to put Legacy Fund investments to work for North Dakotans.

The $100 million addition to Bank of North Dakota’s (BND) In-State Investment Program will increase the program’s total size to $400 million. BND President Eric Hardmeyer stated the program’s outstanding loans were $86 million in September, excluding $102 million of pending loans and $375 million of “Projects in Pipeline Requesting Commitment.” BND serves as an approved SIB investment manager and is responsible for growing this important investment program for the Legacy Fund.

The state-owned Bank of North Dakota requested the increase to support future anticipated growth in this economic development program, which has been in place for over 30 years.

“This increase in funding will provide greater access to capital for businesses looking to launch new manufacturing, processing and value-added businesses and important infrastructure in North Dakota, while also ensuring that more Legacy Fund dollars are being invested right here in North Dakota,” said Lt. Gov. Brent Sanford, who chairs the SIB.

In addition to increasing the SIB’s commitment to the In-State Investment Program, managed by BND, the board also reviewed recent investment results:

  • SIB Pension Pool returns, which include the Public Employees Retirement System (PERS) and the Teachers' Fund for Retirement (TFFR), were ranked in the top 25% of Callan’s public fund database over the last 10 years with a net annual investment return of 8.4% for the 10 years ended June 30, 2020;
  • Legacy Fund net income since its inception hit a new record high of $1.9 billion on July 31, 2020;
  • The Legacy Fund was valued at a record high of over $7.2 billion as of July 31, 2020; and
  • SIB client investments exceeded $16.8 billion as of July 31, 2020.

The SIB has statutory responsibility for the administration of the investment programs of several funds including PERS, TFFR and the Workforce Safety & Insurance (WSI) Fund. The SIB also maintains contractual relationships for investment management with certain political subdivisions. The 12-member Board consists of the lieutenant governor, state treasurer, state insurance commissioner, executive director of WSI, state land commissioner, three representatives of PERS and three representatives of TFFR in addition to one non-voting member from the Legacy and Budget Stabilization Fund Advisory Board.

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