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State Investment Board


The State Investment Board (SIB) is established in Chapter 21-10 of the North Dakota Century Code (NDCC) (requires Adobe Acrobat Reader).

The SIB has statutory responsibility for the administration of the investment programs of several funds including the Public Employees Retirement System (PERS), The Teachers' Fund for Retirement (TFFR) and the Workforce Safety & Insurance Fund. The SIB also maintains contractual relationships for investment management with certain political subdivisions. The 11 member Board includes the Lt. Governor, State Treasurer, State Insurance Commissioner, Executive Director of Workforce Safety & Insurance, Land Commissioner, three representatives of PERS and three representatives of TFFR.

All funds invested under the direction of the State Investment Board (SIB) follow the 'Prudent Investor Rule.' Investments are managed exclusively in the interest of meeting the funds' individual objectives. Professional investment managers, consultants and custodians are retained to assist in the implementation of the investment program. The Retirement and Investment Office (RIO) assists the SIB in carrying out its responsibilities for investment program administration.

Investment Process

The ND State Investment Board believes that an investment program must be built and managed like any good business, with a clear statement of mission, overall objectives, roles and responsibilities, and policies and guidelines. Major issues include:

Asset allocation targets:

  • Setting appropriate benchmarks.
  • Finding the right managers.
  • Monitoring the program.
  • Searching for appropriate new opportunities.

To insure rigorous attention to all aspects of the investment program, the SIB follows an established investment process. This process involves three phases:

  • Investment policy development/modification.
  • Implementation/monitoring.
  • Evaluation.

Fundamental Investment Beliefs

Asset allocation decisions are the primary driver of investment returns, but the prudent use of active investment management is an important contributor towards ensuring our clients attain their stated investment objectives. SIB clients generated over $200 million of incremental income via the prudent use of active investment management over the past five years including $100 million of excess return for the fiscal year ended June 30, 2015.

Strategic Investment Plan

  1. Reaffirm the organizational commitment to our current governance structure including a persistent awareness to the importance of continuing board education.
  2. Enhance transparency and understanding of our core goals and beliefs.
    • Remain steadfast in our commitment to the prudent use of active investment management.
    • Expand awareness to downside risk management which is essential to achieving our long term investment goals.
    • Given actual and projected growth of SIB client assets and the heightened public awareness of the Legacy Fund, align our investment platforms to promote greater clarity and efficiency in reporting and implementing client investment policies.
  3. Expand RIO's influence and ability to create positive and sustainable change by developing relationships with existing clients, organizations and legislative leaders.
    • Enhance community outreach to build upon public awareness and confidence.
    • Develop concise presentations which highlight our overall risk, return and cost control framework including our progress towards attaining our long-term goals.
  4. Heighten employee engagement by promoting an open and collaborative work environment while encouraging employee participation in staff meetings, offer more opportunities to impact RIO's change initiatives and improve overall compensation levels.
    • RIO's ability to continue to deliver strong results is dependent on the combined efforts of our highly valuable team members.
  5. Enhance our existing risk management tools and processes by developing a more robust risk management framework utilizing proven risk management solutions with a focus on portfolio construction and downside risk management (or "stress test" scenarios).
    • A robust risk management framework provides a foundation to understand downside risks and our ability to withstand market corrections in varying stress test scenarios.
  6. Evaluate and expand the efficient use of technology in our investment program activity including risk management, compliance monitoring, client satisfaction surveys, website design and communications in order to increase overall efficiency and effectiveness.



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