The $72.6 million fund was established in 1998 using the proceeds from the sale of the Waipori electricity generation scheme, and has been a valuable contributor to the Dunedin City Council's finances.
A report to the finance and strategy committee this week said the surplus for the financial year was $448,160, but income from dividends, interest, rentals, and realised gains and losses was $5.4 million, compared with $4.5 million last year.
The cash dividend to the council was $3.8 million.
Declines in the exchange rate had been helpful to portfolio valuations, but not enough to outweigh equity price declines.
Returns for the next 12 months would remain volatile.
Council finance and corporate support general manager Athol Stephens said the exchange rate had benefited the fund in the first quarter of the new year.
