Review of council portfolio aims to boost revenue

Selwyn District Council’s $132.2m investment portfolio is being reviewed as part of developing a new strategy to bring in more revenue.

While the council has a number of investments which it manages itself, traditionally it has taken a passive approach rather than buying and selling shares to maximise dividends.

The 2022/23 annual report showed the council owns about $132.2m of shares in several companies.

Included in Selwyn’s portfolio is fully council-owned contractor CORDE Ltd ($24.1m) and a $106.5m shareholding in power company Orion (10.7 per cent), with the remaining shares owned by Christchurch City Council. 

The council also owns 3 per cent of Transwaste (Canterbury) Ltd, worth $1.5m. 

It is a minority shareholder in Central Plains Water Ltd ($437,000) and has 0.83 per cent stake in New Zealand Local Government Funding Agency Ltd (NZLGFA), worth $187,000.

Consulting company PWC briefed the council’s economic development committee at a publicly-excluded briefing on the topic.

Said council executive director enabling services Tim Harris: “(The) workshop was an opportunity for the members of the economic development committee to discuss and refresh their understanding of the council’s strategic investment framework.”

Selwyn Times understands the new investment strategy aims to more actively manage the portfolio, with the goal of producing greater dividends.

While it is being developed, the council declined to say how the strategy will differ from the status quo, when it will be made public, or if asset sales or purchases were planned.

The council’s investments provide $6.296m in returns, with Orion bringing in the most at $3.432m, followed by CORDE with a $2.25m dividend.

Smaller returns come from Transwaste, at $605,000, and $9000 from NZLGFA.