Review of PIF Service Delivery Structure Under Way
Mon 11 Jul 2016

Following the successful sale of Tasman Farms, the Council and Taranaki Investment Management Limited (TIML) agreed it was an appropriate time to review the model for managing the Perpetual Investment Fund (PIF) as TIML commences the process of “resetting” and rebalancing the PIF portfolio.

TIML, a Council-controlled organisation, has been responsible for management of the PIF since the fund’s inception in 2004. During this time, which included the impact of the GFC, the PIF has earned an average after tax, and all costs, return of 6.83 per cent p.a. and returned $187 million to the Council.

For the last three years TIML has earned on average an after tax return of 13.1 per cent.

The fund balance at 31 March 2016 was $274.5 million.

Completing a review is consistent with the Council’s practice of regularly reviewing the delivery of its facilities and services, including those of Council-controlled organisations.
The review does not seek to amend the founding principles or the policy and objectives of the PIF, but rather will focus on the service delivery structure of the PIF.

To inform this review a request for information (RFI) will be issued to test the market for potential outsourced options and the associated costs.

The Council will wait for the outcome of this RFI process before making a final decision on the service delivery structure of the PIF.

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