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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 two-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 Indicator.

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 underway. ICR results are posted on the Treasury website.

The Treasury is implementing Round 2 of the Investor Confidence Rating (ICR) in a phased approach over 24 months from August 2017 - July 2019.

The phased approach allows agencies and the corporate centre to adjust to the new expectations in an orderly manner. The Treasury will work closely with agencies to identify the specific information required to inform each agency's ICR.

Final agency ratings and any resultant implications will be determined by Cabinet under advice from Government Investment Ministers. Any adjustments following Cabinet decision will not affect the rating agreed by Cabinet but the adjusted rating will be used as the agency's benchmark to compare against in future assessments.

Initial phase

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

Next three phases – to July 2019

The next three 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 August 2018 and December 2018, with Cabinet decisions expected in March 2019. The final tranche in Round 2, Tranche 3, will take place between February 2019 and May 2019, with Cabinet decisions expected in July 2019.


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

More information around how ICR operates can be found here:

Results from Round 1 ICR assessments can be found here:



Last updated: 
Wednesday, 14 June 2017