Dunedin's Waipori fund ended the first six months of the financial year with a surplus of $5.2 million, a result chairman Ross Liddell described as "pleasing".
Mr Liddell's report on the fund's progress for the second quarter of the financial year noted the recovery from the recession could be unstable, because of a level of global stimulus "no-one has seen before".
The $71.2 million fund, which has grown since it shrank to $66.9 million in the middle of last year, was established 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.
The report, which will be discussed by the council's finance and strategy committee on Monday, said cash flow from dividends, interest and rents was $1 million for the quarter.
But the "telltale signs of bubbles, emerging imbalances and new distortions are quite different to anything that has confronted policy-makers previously", Mr Liddell said.
"There are potential problems that may arise which could adversely affect the stability of the global economy, making the recovery process more volatile and less stable than in the past."
