You are not permitted to download, save or email this image. Visit image gallery to purchase the image.
The Dunedin City Council’s multimillion-dollar Waipori Fund has recorded a 6.5% loss.
The loss — recorded in the quarter ending March 31 this year — was attributed to the pandemic’s impact on the economy.
The value of the fund was $90.4million following the loss on March 31.
A report to be discussed at the finance and council-controlled organisations committee meeting today said a decrease of $6.14million was recorded in March.
However, this was less than expected, as a 7.1% benchmark for loss was set.
The report said the fund was in "uncharted territory", and at the mercy of market reactions to a variety of outcomes from Covid-19.
Some of the losses had been recovered, as in April, $3.87million of the decrease was returned, and in May, $1.95million was returned.
An overall return of 6.9% had been produced since June 2014.
The report said the fund had "cash on hand" and looking forward it would seek advice about investment opportunities.
"The fund is diversified and has been a long-term investor. Accordingly we continue to maintain a long-term view versus reacting to current market values."
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 included 44.8% in growth assets, and a 55.2% investment in income assets.
Investment in New Zealand assets made up 16%.