Investments

Investments

Our settlement assets are managed by Ngāti Apa ki te Rā Tō Investments Limited (Ngāti Apa Investments), which is a wholly-owned subsidiary of the Trust. Ngāti Apa ki te Rā Tō Investments has a separate board of five directors, two of whom are independent.

Ngāti Apa ki te Rā Tō Investments are responsible for getting the best return from our assets in accordance with the mandate given to it by the Trust. This mandate requires an approach to investment based on:

  • Generating a level of return sufficient to fund the Trust’s activities, while remaining within the boundaries of the Trustee’s risk appetite and comfort level;
  • Safeguarding the settlement for future generations; and
  • Contributing (where possible) to the Trust’s broader objectives. This may mean, in time, greater focus on investments and businesses within our communities (which will help drive local economic activity, growth, and jobs), or in industries that have a strong cultural resonance. 

Approach to Investment

Interim Approach

It is going to take some time to establish the systems, processes, and capabilities that must be in place before we are ready to take a “hands-on” approach to investment.

In the interim, the director’s consider that the best results are likely to be achieved by placing the settlement funds with specialist external investments managers. After a comprehensive process they have recently selected ANZ and Harbour Asset Management to perform this role. This is called a “passive” approach, because Ngāti Apa Investments will not be directly responsible for deciding what investments to make.

However, the directors will oversee the investment managers (to ensure their performance meets expectations) while focusing their energies on developing a sustainable and robust longer-term approach with a greater focus on “direct investment” over time – this is where Ngāti Apa ki te Rā Tō Investments can add value.

Longer-term Approach

Our longer-term investment approach will be captured in an investment framework, and will include:

  • Parameters for the kind of investments that may be suitable for us;
  • A way to evaluate the likely return from investments beyond purely financial returns (e.g. how do we take into account the indirect positive impacts of investment, like job creation in Marlborough, or on the West Coast, which may not add to the bottom line, but are nevertheless valuable to us);
  • Identification of the kind of skills and capabilities we need to undertake direct investment, and a plan for growing them over time; and
  • Developing a way to evaluate how much value Ngāti Apa ki te Rā Tō Investments is adding (i.e. above what would have been achieved under a purely “passive” approach), so that the Trust can hold them to account for their performance.

Over the next twelve months Ngāti Apa ki te Rā Tō Investments will be focusing on:

  • Building the investment framework;
  • Forming relationships with other iwi and other potential investment or commercial partners;
  • Building greater understanding of our existing assets (e.g. fish quota); and
  • Implementing fund management arrangements.