The Dunedin City Council's Waipori fund had a surplus of $1.8 million for the June quarter, a "very satisfactory" result given its loss in value of $750,000, chairman Ross Liddell said.
Cash flow from the fund continued to provide "solid" income levels of $4.4 million, with a cash dividend of $3.9 million to the council.
The $66.9 million fund - which has shrunk from $72.6 million at the end of 2007, and $69.5 in February - 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.
Mr Liddell said in a report the "demise of the global growth model" seemed likely to depress growth for years.
"The trend going forward is likely to be lower growth levels with increased volatility."
The fund, however, was expected to maintain its good level of cash earnings through dividends, interest and rentals.
