A ballot measure approved by North Dakota voters on Nov. 5 has set the stage for the state’s $11 billion sovereign wealth fund to boost allocations for private market investments.
Measure #3, which passed narrowly with 52% of the vote, slashes the amount of the Legacy Fund’s principal lawmakers can access during a two-year budget cycle to 5% from 15%.
Rep. Glenn Bosch, a Republican member of the state House of Representatives who is vice chair of the Legacy and Budget Stabilization Fund Advisory Board overseeing the fund, in a news release said that with the passage of Measure #3 the fund can "consider more long-term (investments) that have the potential to increase the fund’s earnings,” which in turn could provide additional money for tax relief, infrastructure and in-state projects.
A board meeting slated for Nov. 12 could take up the question of raising the fund’s allocations to private markets segments.
For the most part, the fund’s actual allocations to those segments at present remain below their targets of 8% to in-state investments, 7% to private equity, 5% to diversified real assets and 5% to real estate.
As of June 30, the fund’s actual allocations were 4% to in-state investments, 0% to private equity, 5% to diversified real assets and 4% to real estate.
A spokeswoman for North Dakota said over the almost 15 year life of the sovereign wealth fund the state legislature has never voted to tap into its principal.
