News

Auckland Future Fund Officially Launched As Council-Controlled Organisation

Written by IWK Bureau | Sep 30, 2024 10:14:17 PM

The Auckland Future Fund, established by Auckland Council to bolster the region's physical and financial resilience, was formally launched with the signing of the trust deed and founding documents on Friday, September 27. The fund, a key component of the council’s long-term financial strategy, was endorsed by its newly appointed Board of Directors.

Board Chair Christopher Swasbrook highlighted the significance of this milestone, stating, "This marks an exciting moment for the Auckland Future Fund. With the entity now in place, we can begin laying the groundwork for enhancing Auckland’s resilience. Though it’s still early days, we are optimistic about the fund’s long-term potential to support the region and provide sustainable capital growth."

Swasbrook emphasised the fund’s dual role in protecting Auckland’s future and generating returns to fund council services. The fund is expected to provide approximately $40 million annually from 2025/26.

Councillor Christine Fletcher, who acts as a liaison to the fund, described it as a crucial step forward for the council’s financial planning. “The Auckland Future Fund represents a new approach that will benefit all Aucklanders. It offers both stability and returns, which will be valuable assets for the region in the years to come,” she said.

The Auckland Future Fund was confirmed in Auckland Council’s Long-term Plan 2024-2034 and will be initially capitalised using the council's remaining shares in Auckland International Airport Limited. The fund is structured to operate independently from the council while following its high-level directives.

The board overseeing the fund includes Chair Christopher Swasbrook, along with Craig Stobo and David Callanan. Their appointment followed a rigorous selection process, receiving unanimous support from the Performance and Appointments Committee and the council’s Māori advisory board, Houkura.

The fund will diversify Auckland Council's investments, focusing on reducing reliance on rates by generating revenue from various sectors and locations. The council anticipates long-term annual returns of 7.24%, of which 5.24% will be allocated for council services, with the rest reinvested to preserve the fund's value.

As the fund moves forward, the Board’s immediate focus will be on diversifying its investments to manage financial risks and ensure sustainable growth.