NEWS | FOR IMMEDIATE RELEASE | June 23, 2026
North Dakota State Investment Board adopts modernized governance structure
BISMARCK, ND – The North Dakota State Investment Board (SIB) has adopted a modernized governance structure designed to strengthen oversight, improve decision-making, and support the long-term stewardship of public funds. The changes follow an independent assessment conducted by Funston Advisory Services LLC.
The new Governance Policy System provides a unified, modern framework for how the SIB makes decisions, delegates authority, and exercises its fiduciary responsibilities. The system introduces improved decision processes, clearer roles, and a disciplined, multi‑year governance cycle that supports long-term financial stewardship.
“Modernizing the State Investment Board’s governance framework is essential to safeguarding North Dakota’s financial future. The updates strengthen clarity, transparency, and accountability across the entire investment oversight process,” said Gov. Kelly Armstrong, SIB Chair. “By putting a more disciplined and forward‑looking structure in place, we are ensuring that the State Investment Board can meet its fiduciary responsibilities with the rigor and responsiveness that North Dakotans deserve.”
Key enhancements include:
- Budget and Finance Committee Creation: A new standing committee will oversee financial reporting, multi‑year financial planning, financial controls, procurement, and the alignment of resources to SIB priorities.
- Securities Litigation Oversight Transition: Oversight of securities litigation will transition to the Retirement and Investment Office’s (RIO) executive director, who will provide structured reporting to the SIB, simplifying governance while maintaining necessary transparency.
- Clarified Roles and Delegations: The new system updates and clearly defines the executive director's responsibilities, including oversight of operational risk management, while modernizing outdated terminology. Committee charters and board authorities were also refined to strengthen accountability and decision-making.
- Investment Manager Selection Authority Delegated: The selection of external investment managers will occur under staff-delegated authority, reflecting modern governance practices and allowing the SIB to focus on strategic oversight. The SIB’s Investment Committee will continue to oversee performance, risk, and compliance.
- Exception-Based Reporting: Routine items will move to consent agendas across board and committee meetings, allowing the members to focus more time on strategic and risk‑sensitive issues.
- Modernized Board Materials and Decision Calendar: A new interactive web-based governance manual improves navigation and accessibility and introduces a decision calendar to organize board approvals and reviews.
“Strong governance is foundational to managing public funds responsibly. This modernized system brings greater clarity to roles and responsibilities, strengthens decision‑making discipline, and enhances our ability to oversee risk in a rapidly evolving investment environment,” said Dr. Rob Lech, SIB vice chair and the chair of the board’s Governance and Policy Review Committee which led the review.
The new governance structure takes effect July 1, 2026, with full implementation occurring over the next fiscal year as operational changes, reporting updates, and internal processes are aligned with the modernized framework.
The SIB established its original governance structure in 1995, when it oversaw $1 billion in assets. While foundational policies were refined over the years, the Funston review was the SIB’s first independent governance assessment. Today, the board oversees more than $29 billion, including the assets of the North Dakota Legacy Fund, Public Employees Retirement System, Teachers’ Fund for Retirement, and Workforce Safety and Insurance. RIO administers the SIB’s investment program.
For more information about the SIB or RIO, visit rio.nd.gov.
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