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Growing NPDC community nest egg helps build sustainable future for our tamariki

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PUBLISHED: 3 SEPT 2025
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NPDC’s investment fund for the future has broken the $400 million mark, paving the way for a more sustainable future.

The Perpetual Investment Fund (PIF) hit almost $404m at the end of the financial year in June, having started the financial year at about $379m. In July, the balance was $409m.

The PIF briefly topped $402m in January before slipping back in March, said NPDC Manager Finance Matthew Thomson.

“Given the political and economic uncertainties in North America and Europe at the time, the markets were volatile.  However, we’re committed to a strong and stable PIF to help us to invest for our tamariki an maintain our district as one of the best places in Aotearoa to live, work and visit,” said Mr Thomson.

“As well as offsetting our rates, the PIF also supports NPDC’s strong financial performance and funds our Disaster Recovery Reserve and our Sustainable Lifestyle Capital reserve, which future-proof our district against natural disasters and building infrastructure for future generations.”

International ratings agency S&P Global in April this year confirmed NPDC’s credit rating of AA/A-1+, saying it was underpinned by the PIF.

“New Plymouth's Perpetual Investment Fund (PIF) is a credit strength compared to peers. It allows the council to subsidize its budgets and is a substantial liquidity buffer,” said the S&P report.

In the year to the end of June 2025, the PIF paid out about $12 million to NPDC helping to offset rates.

Fast Facts:​

  • NPDC created the PIF in 2004 with the $259.4 million proceeds from the sale of its shareholding in Powerco.​
  • Since then, the PIF has released a total of $274 million to NPDC, including $12m in the 2024-25 financial year.​
  • The PIF is independently managed by Mercer asset management, overseen by the New Plymouth PIF Guardians Limited, a council-controlled organisation.​
  •  Under the New Plymouth District Council (Perpetual Investment Fund) Act 2023, the PIF is protected for future generations, and the benefits are ring-fenced to residents living in the current district boundary.​
  • Release payments from PIF have traditionally been used to offset rates and keep rises down.​
  • In the 2024-34 Long-Term Plan, the Mayor and Councillors agreed to invest some of the PIF returns each year in:​
      • Our Disaster Recovery Reserve ($100,000 each year) to help us recover after natural disasters.
      • Creating a Sustainable Lifestyle Capital Reserve ($250,000 in year one, incrementally increasing by $250,000 each year to $2.5m in year 10, when the total reserve will be $13.75m) to help fund projects that contribute to the vision of a Sustainable Lifestyle Capital.​

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Page last updated: 11:03am Wed 03 September 2025

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