Wednesday 14 December 2016

Iwi assets

A new report from Phil Barry and his team at TDB highlights some great success in iwi asset management.
We estimate the total assets of the post-settlement entities are now valued at around $6b. This report considers eight iwi - Ngāi Tahu, Ngāpuhi, Ngāti Porou, Ngāti Whātua Ōrākei, Port Nicholson Block, Rangitāne o Wairau, Tūhoe and Waikato-Tainui - with combined assets of around $4.3b.
Treaty settlements provided substantial assets to iwi. By and large, they've been well managed. The separation between commercial and social arms seems important:
The eight iwi we have reviewed generally have similar corporate structures. While these structures are often complex, typically there is an overarching trust that makes decisions about distributions and the nonfinancial objectives of the group, while a separate commercial entity has been established to manage the group’s commercial assets and to make investment decisions under a commercial mandate.
One side is profit maximising; the other side uses the earned profits to achieve iwi social objectives. Keeping a clean line between the two forces a harder line on asset management. The report notes a bias toward property investment which puts some risk into the portfolio.

And whoever at  Ngāi Tahu negotiated the relativity payments is a genius.
Over the last 10 years, Ngāi Tahu has nearly tripled its asset base, from $561m in 2006 to $1,504m in 2016. With little debt, Ngāi Tahu’s net worth has grown significantly over this period. 2016 was no exception, with the asset base increasing by 12% and net worth increasing by 11%. Ngāi Tahu has received numerous relativity payments from the Crown over the period, with payments in 2013, 2014 and 2015 of $69m, $13m and $29m respectively.

No comments:

Post a Comment