Release reports on boosting Heritage Fund
Albertans deserve clearer picture of premier's plan, writes Lennie Kaplan
In a televised address to Albertans on Feb. 21, Premier Danielle Smith committed to publicly release a long-term financial plan charting a path to a Heritage Fund of between $250 billion and $400 billion by the year 2050.
The premier should be lauded for this long-range fiscal vision, but getting there will be a major challenge. Albertans deserve a better idea of the extent of the challenge of building up the Heritage Fund by 2050, and why we must meet it to secure our financial future.
The details behind this long-term fiscal vision matter to Albertans. In fact, we learned during the presentation of Budget 2024 that the UCP government had some initial background work done for it by a mystery outside firm on this very subject. Unfortunately, the government has not seen fit to identify the outside firm nor release its reports.
Now, we find out that the identity of the mystery outside firm that did the initial deep drive on the Heritage Fund was known as BERG Capital Management (BERG), now called the PNYX Group.
BERG was selected in June 2023 by the Alberta Treasury Board and Finance to provide investment consulting services, reviews of investment policy and strategy, extensive risk assessments of current portfolio and further scenario analysis, as well as investment analytics necessary to continue meeting the Alberta Heritage Savings Trust Fund's legislated objectives. This includes putting forward recommendations to further grow the Heritage Fund.
BERG/PNYX provides investment consulting services and governance of investments practices to Sovereign Wealth Funds, future generation funds, public and corporate pension plans, central banks, treasury and ministers of finance, central banks, large family endowments and insurance companies. BERG has provided these services to many of the world's largest sovereign wealth funds, including the fastest-growing Sovereign Wealth Fund in Europe, both in its governance of investments and its investment policy and strategic asset management.
The details behind building up the assets of the Heritage Fund are important and should involve Albertans. To avoid the same controversy that has surrounded the release of documents on the Alberta pension plan deliberations, there should be full transparency with Albertans about the reports prepared on building up the value of the Heritage Fund.
Albertans should have full access to the BERG/PNYX reports on the $250 billion to $400 billion Heritage Fund.