STDC Investment Fund Performs Strongly
Tuesday, October 08, 2013
The South Taranaki District Council’s Long Term Investment Fund (LTIF) made $16.8 million in the 2013/13 financial year, $8 million more than budgeted.
The Fund, which was created by investing the proceeds ($88.732 million) from the sale of Egmont Electricity in 1997 is currently valued at $113 million.
Each year the Council draws $5.6 million from the LTIF and uses this to subsidise general rates ($3.87 million) and service interest and loan repayments for specific community projects ($1.73 million). In this way the LTIF has returned over $75 million back to the community since it was started in 1997.
Council CE Craig Stevenson says the LTIF is a perpetual fund so it is important to look at its performance over the long term. "It has good years and not so good years and under Council’s current policy, any extra revenue is returned to the fund to build it up for those years when it doesn’t perform so well," says Mr Stevenson.
Over the 16 years since the LTIF was formed it has achieved an average gross return of 6.98%.