The fund has made a strong comeback since its principal shrank to $66.9 million as the recession took its toll in the middle of last year, rallying to $71.2 early this year then $72.9 million by the end of March.
The fund was established using proceeds from the sale of the Waipori electricity generation scheme, and has been a valuable contributor to the Dunedin City Council's finances.
Fund chairman Ross Liddell said in a report to next Monday's council finance and strategy committee meeting the return to date compared "extremely favourably" with a target for the period of $4.2 million, and a loss for the corresponding period last year of $3.5 million.
The cash flow element of the surplus generated through rents, dividends, interest and realised gains was $914,257 for the quarter, and $2.8 million for the year to date.
Mr Liddell said the outlook for the next few quarters remained positive, with overall global growth continuing to improve.
Growth in the United States was becoming more positive, but was still being supported by fiscal stimuli, while Europe and Japan was "much more subdued".
"The cyclical recovery is unfolding in a much more dramatic way than most observers thought possible a few months ago."
There was, however, significant risk in the medium term.
Almost all developed countries had run aggressive fiscal policies, and the resulting debt would need to be repaid.
"We expect the fund to maintain its current level of growth well into the next financial year."
