The Dunedin City Council’s multimillion-dollar Waipori Fund appears to have weathered the Covid-19 storm, recording a 2.8% profit in the last quarter.
The profit, recorded in the quarter ending September, was attributed to New Zealand and international equities performing well.
On March 31, the fund recorded a 6.5% loss, attributed to the pandemic’s impact on the economy, and was valued at $90.4million, but as at September 30 was $95.9million .
A report discussed by the Dunedin City Council yesterday said the fund had performed better than expected, forecast profit having been 2.6%.
It said stock markets had performed well, but had been hampered by renewed lockdowns in many cities around the world.
The council envisaged an 8.1% return since 2014 before June next year.
The fund was well-placed to deliver sustainable returns, the report said.
"The fund is diversified and has been a long-term investor.
"Accordingly, we look to retain a long-term view."
The fund was established in 1999 using proceeds from the sale of the Waipori electricity generation scheme, and has been a valuable contributor to the council’s finances.
Investment is comprised of 48.7% in growth assets and 51.3% in income assets.
Investment in New Zealand assets makes up 19%.
