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Investor Confidence Rating (ICR)

The Treasury is committed to robust and transparent stewardship of public funds. Owning the right assets, managing them well, funding them sustainably, and managing risks to the Crown balance sheet are all critical to public services being cost effective and high quality.

Investments mean committing resources to deliver government services with the expectation of receiving future benefits.

Establishing how agencies are managing investments and assets is a critical way to ensure taxpayer money is being used as effectively as possible.

The Investor Confidence Rating (ICR)

The ICR is a three-yearly assessment of the performance of investment-intensive agencies in managing investments and assets that are critical to the delivery of NZ government services. The ICR provides an indication of the level of confidence that investors (such as Cabinet and Ministers) can have in an agency’s ability to realise a promised investment result if funding was committed.

The ICR process is led by the Treasury. The process provides feedback to agencies on improvement actions that they can take to enhance key aspects of their investment management capability and performance. Over time, these actions position agencies to more effectively manage future investments and assets.

Between formal ICR assessments, the Treasury leads a review of the progress each agency is making in response to the last ICR assessment. That progress is reflected in the form of an Outlook Discussion.  The outlook discussion timings are found below.

The rating scale

The ICR uses a rating scale from A to E, with an ‘A’ rating signalling a high level of performance and an ‘E’ rating indicating significant assistance may be required for the agencies investments to deliver results. A ‘C’ rating means that the status quo investment management system arrangements remain in place.

How the ICR is used

The ICR provides an incentive mechanism that rewards good investment management performance and proactively addresses performance gaps. Agencies that receive a good rating may obtain greater autonomy, higher financial delegations and less monitoring and reporting. Agencies that do not rate as well may obtain less autonomy, lower financial delegations and may attract additional monitoring and support from the Corporate Centre.

The ICR helps individual agencies identify where they need to lift capability to maximise the value of their investments and assets and is one component of the information that is considered by Cabinet when it prioritises investments. 

ICR Timeframes

The first round of ICR assessments is complete. ICR results are posted on the Treasury website.

The Treasury is implementing Round 2 of the ICR in a phased approach from August 2017 - March 2020.

Final agency ratings and any resultant implications will be determined by Cabinet under advice from Ministers.

Initial phase

The initial phase of Investor Confidence Ratings for Round 2 includes agencies that were not assessed in Round 1. Assessment of these agencies will take place between August 2017 and December 2017, with Cabinet decisions on ratings expected in the middle of 2018.

Next four phases – to March 2020

The next four tranches will follow a similar order as Round 1 assessments. This is to ensure agencies are given sufficient time to make improvements between cycles. Tranche 1 assessments will take place between February 2018 and May 2018, with Cabinet decisions expected in July 2018. Tranche 2 assessments will take place between September 2018 and January 2019, with Cabinet decisions expected in March 2019. Tranche 3 will take place between February 2019 and May 2019, with Cabinet decisions expected in July 2019. The final tranche will take place between September 2019 and January 2020, with Cabinet decisions expected in March 2020.

Table 1: ICR Programme for Round 2
Tranche Investment intensive agencies Assessment period Data due (latest)
Initial tranche Southern DHB Aug 17 - Mar 18 30 Nov 2017
  Ministry of Social Development    
Tranche 1 Ministry of Defence Feb 18 - Jul 18 30 May 2018
  Housing New Zealand Corporation    
  NZ Transport Agency    
Tranche 2 Accident Compensation Corporation Sep 18 - Mar 19 30 Nov 2018
  Ministry of Education    
  Inland Revenue    
  Department of Corrections    
  Ministry of Justice    
  New Zealand Police    
Tranche 3 Auckland DHB Feb 19 - Jul 19 30 May 2019
  Canterbury DHB    
  Counties-Manukau DHB    
  Northland DHB    
  Waitemata DHB    
  Capital & Coast DHB    
  Waikato DHB    
Tranche 4 New Zealand Customs Service Sep 19 - Mar 20 30 Nov 2019
  Department of Internal Affairs    
  Ministry of Business Innovation and Employment    
  Ministry of Foreign Affairs and Trade    
  Ministry of Health    
  Department of Conservation    

The outlook discussions are planned to occur:

Table 2: Timing of Outlook Discussions
Investment intensive agencies Outlook Discussion
Department of Internal Affairs May - July 18
Ministry of Business Innovation and Employment  
Ministry of Health  
Department of Conservation  
New Zealand Customs Service  
Ministry of Justice  
New Zealand Police  
Capital and Coast DHB  
Ministry of Foreign Affairs and Trade Aug 18
Waikato DHB  
Southern DHB TBD

More information around how ICR operates can be found:

Results from ICR assessments can be found:



Last updated: 
Thursday, 19 September 2019