DCC: DCHL on Waipori Fund

Dunedin City Council – Media Release
Positive Result for Waipori Fund

This item was published on 22 Jul 2015

The Waipori Fund performed strongly in the past financial year while meeting key targets. The fund’s capital base for 2014/15 is above its inflation adjusted target for the first time since 2008.

The fund is managed by Dunedin City Treasury Limited, a company owned by Dunedin City Holdings Limited (DCHL). DCHL is in turn is owned by the Dunedin City Council.

DCHL Chair Graham Crombie says this is an important measure because it shows the fund’s capital base is not being eroded. “As well as a good overall return for the year, it’s very pleasing to see the fund achieve this threshold.”

The fact the fund reached the target in the past financial year was mainly due to strong equity in the bond markets and a weakening New Zealand dollar.

The market value of the investment portfolio was $81.6 million at 30 June 2015. This was a 13.1% return for the year. This return also met the income objective of exceeding the official cash rate plus the consumer price index.

The graph below shows the progress of the fund since its establishment. The fund was created from the sale of the Waipori electricity generation scheme. It provides a source of revenue for the Council which can be offset against rates.

Waipori Fund
waipori-fund

Contact Group Chief Financial Officer on 477 4000.
DCC Link

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The distribution to council was budgeted to increase slightly over the period of the council’s 10-year plan.

### ODT Online Fri, 24 Jul 2015
DCC has no plans to spend surplus in Waipori Fund
By Chris Morris
The Dunedin City Council is celebrating a better-than-expected 13.1% jump in the value of its Waipori Fund, but has no plans to spend the bonus. […] Council group chief financial officer Grant McKenzie said the “solid” result reflected strong equity in bond markets and a weakening New Zealand dollar. […] “It’s just a funding stream for council.”
Read more

Posted by Elizabeth Kerr

1 Comment

Filed under Business, DCC, DCHL, DCTL, Economics, Media, Name, New Zealand, OAG, People, Politics, What stadium

One response to “DCC: DCHL on Waipori Fund

  1. Elizabeth

    Where Auckland Council goes, DCC shall follow.

    Link received.
    Fri, 24 Jul 2015 at 12:46 p.m.

    ### whaleoil.co.nz July 24, 2015 at 12:30pm
    Auckland Council finally runs broke, now looking for coins down the back of the sofa
    By Cameron Slater
    Auckland Council is finally broke.
    It’s cash strapped and now it’s looking at selling down the family jewels to find some more money. […] Selling assets is bad per se, but selling assets without first getting your spending under-control is simply going to be like throwing petrol on the bonfire, and will last about as long.
    The real problem lies with the Mayor’s office. We have a guy who ran a flea market and a third rate suburban conveyancing office as his qualifications for the big job…it is showing in his poor fiscal management of the city.
    Full post

    █ 24.7.15 NZH: City of sales: Cash-strapped council reviews key assets
    [Bernard Orsman]

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