Auckland Future Fund
We are proposing to establish an Auckland Future Fund ('the fund') to manage the council’s financial investments.
The key objectives of this proposal are to:
- protect the value of the council’s major investments
- improve the council's long-term financial resilience
- reduce risks presented by climate change and other major environmental challenges
- self-insure (put money aside rather than paying external insurance premiums) for some risks
- diversify (spread the risk of) the council’s investments over a range of different assets in different locations
- improve cash returns to the council to help pay for council services
- better provide for changing community needs.
The Auckland Future Fund is part of the central proposal for the long-term plan and could also be part of 'less' and 'more' options. (Visit Long-term plan options and trade-offs explained for more information.)
How the fund would work
Auckland International Airport Limited (AIAL) and Ports of Auckland (POAL)
We propose to transfer the council’s shareholding in Auckland International Airport Limited (just over 11 per cent) to the fund so we can sell some or all the shares in the future.
In addition, the council owns 100 per cent of Ports of Auckland Limited (POAL), which is the company that owns and operates Auckland's commercial freight and cruise ship harbour facilities.
Part of our proposal for the Auckland Future Fund is to lease the operations of Ports of Auckland (POAL) to an external party for around 35 years. We would receive an upfront payment for this lease, which we would invest into the fund.
All port land and wharves would remain in the council group (Auckland Council, POAL and council-controlled organisations ownership and the port operations would transfer back to the council group at the end of the lease.
We would reinvest the proceeds from the sale of the AIAL shares and the port's operating lease across several different investments.
How we would manage the fund
The fund would be managed by a professional investment manager under a clear set of investment objectives and policies set by the council.
Rules and restrictions would be put in place, including under what circumstances the funds can be accessed in the future.
Other fund options
Other options to consider for our major investments are:
- keep things as they are (no Auckland Future Fund)
- establish the Auckland Future Fund using AIAL shares only
- establish the Auckland Future Fund using AIAL shares and POAL dividends (a share of their profits).
Keep things as they are
With this option we would neither establish an Auckland Future Fund nor transfer or sell our remaining shares in AIAL. POAL would continue to operate the port.
As 100 per cent shareholder, the council would continue to work with POAL to improve its financial performance and share of profits.
Auckland Future Fund using AIAL shares only
With this option we would establish an Auckland Future Fund and transfer the council’s remaining AIAL shareholding into the fund, as in our central proposal.
However, POAL would continue to operate the port and the port's returns would not be invested in the Auckland Future Fund.
Auckland Future Fund using AIAL shares and POAL dividends
With this option we would establish an Auckland Future Fund and transfer the council’s remaining AIAL shareholding into the fund, as in our central proposal.
POAL would continue to operate the port, however POAL dividends would be invested into the Auckland Future Fund.
You should know
The information on this page is an edited version of the proposed Long-term Plan 2024-2034 Consultation Document.
For more information about our proposed Auckland Future Fund see pages 56-71 of the Long-term Plan 2024-2034 Consultation Document [PDF 17MB].
