Summary of Investment Management and Asset Performance in the State Services

Treasury is running a programme of work designed to raise performance of investment management and asset performance in the state services.

When we talk about investment we mean the commitment of resources with the expectation of receiving future benefits. An investment is not only about the decision to invest but about its whole lifecycle. The point of having an active interest in the investment is to ensure the expected rewards have the greatest likelihood of being realised.

Investment management is a subset of strategic financial management

With $278bn in assets on the Crown balance sheet at 30 June 2015, and over $5.5bn in new capital spending each year, there is a lot at stake. If we get this right, we can avoid significant costs and future liabilities, get better at investing in what matters most, and actually realise the benefits from the investments we make.

What this means for agencies is that you need to understand your organisation’s business, how the component parts contribute to it, and the performance of the parts in contributing to what your organisation is trying to achieve

The Cabinet Circular CO(15)5 Investment Management and Asset Performance in the State Servicessets out expectations for agencies This is currently being implemented, the details of the components are on Treasury’s website:

The expectations are greater for the 25 investment intensive agencies This year we are looking at asset performance information from these agencies – reporting to Treasury, as next year this will be an expectation in agency Annual Reports.

Contact the Investment Management and Asset Performance team at