Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Legacy Fund Performance topic
No spam. Unsubscribe anytime.
CIO reports strong Legacy Fund returns through January; warns March drawdown tied to geopolitical event
Summary
Scott Anderson said the Legacy Fund posted above‑benchmark returns through January (1‑month and multi‑year outperformance), highlighted real‑estate weakness and noted that March’s market reaction to geopolitical events produced a drawdown whose long‑term impact is uncertain.
Scott Anderson, Chief Investment Officer of the Retirement Investment Office, told the advisory board the Legacy Fund posted robust performance through Jan. 31, 2026, with fiscal‑year‑to‑date returns and one‑year returns that exceeded policy expectations.
Anderson said the fund had a fiscal‑year‑to‑date return of about 10.6% versus an opportunity‑cost benchmark of 10% and noted a January monthly return of 1.6% for the Russell 3000 and a 1‑year return for the fund in the mid‑teens (Anderson cited a roughly 17.3% one‑year return). He said those excess returns were measured by an independent consultant, Verus, and that the plan’s implementation has produced notable active returns while keeping risk close to or below benchmark levels.
He also cautioned that March brought a market drawdown tied to geopolitical events that could affect near‑term returns, but said the markets had held up reasonably well to date. Anderson highlighted that real estate has been the largest detractor and that one manager marked down a portfolio by about 10%; real estate represents roughly 3.2% of the asset allocation in their description and therefore can still meaningful affect outcomes.
Anderson outlined internal operational changes that have reduced implementation costs: the internal direct public markets team and direct private markets work have produced fee and transaction‑cost savings; Anderson cited estimated fee savings (fixed income and equity) and projected transaction‑cost improvements, while noting the internal team has associated costs.
Committee members asked whether higher oil prices had already translated into larger Legacy Fund deposits; staff explained there is a multi‑month lag between production, collection and distribution and that the March 20 deposit ($47,000,000) reflected January production. Members discussed allocation balances including the in‑state programs and 50 South Capital allocations.
Anderson’s report was taken as informational; the committee used the presentation to inform subsequent motion and discussion about in‑state allocations.
