As­set earn­ings

Auckland City Harbour News - - NEWS -

Pat Booth’s col­umn on Au­gust 29 fea­tured a cor­re­spon­dent who was de­cry­ing the re­turn that Auck­land Coun­cil In­vest­ments Lim­ited (ACIL) earns on its as­sets.

Bor­row­ings are part of ACIL’s struc­ture and not all of the group’s earn­ings are dis­trib­uted – this was not pointed out in the col­umn.

A bet­ter way of cal­cu­lat­ing the re­turn would be to mea­sure to­tal com­pre­hen­sive in­come as a per­cent­age of share­holder funds.

The re­turn on that ba­sis, for the year ended June 30, 2012, was 15.5 per cent.

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