Waikato Regional Council’s investment fund has performed strongly over the past six months reflecting the increasingly positive global economic outlook.
At this week’s Finance Committee meeting, councillors heard the fund had returned $3.3 million so far this year, largely due to upward movement in the sharemarket.
Committee chairperson Jane Hennebry said the fund returns reflected the more conservative approach to investing the council adopted about four years ago.
“We made a conscious decision to invest for a steady return rather than accept the volatility associated with higher risk returns, particularly in the wake of the global financial crisis,” she said.
“The fund is doing really well and over the next few months we will be reviewing our investment objectives and continuing to proactively manage the fund to get the best results for current and future ratepayers.”
The investment fund arose from the sale of the council’s shares in the ports of Auckland and Tauranga in the mid 1990s. Returns are used to fund special projects, finance internal borrowings and reduce rates.
The fund was $68 million in 2009. It is currently valued at $84.7 million.