Assets & Investments
Investment Portfolio Information
Raukawa ki te Tonga AHC Limited (AHC) was established as the commercial organisation to manage the various settlement assets and investments of Raukawa ki te Tonga Trust (the Trust) in a commercial and sustainable basis.
As at 30 September 2019, the financial year end, the AHC Investment Portfolio totalled $24,692,353.00.
The Raukawa ki te Tonga AHC Limited Board have approved re-aligning its investments to a Growth Orientated Portfolio in which there is a 65 per cent allocation to growth assets and a 35 per cent allocation to defensive assets. Diversification through prudent asset allocation is a cornerstone of prudent investment management. The goal of diversification is to minimise risk for the return that is required to meet the portfolio’s objectives, subject to constraints around settlement assets that will always be retained by the Trust.
Diversification will be achieved by:
- Ensuring that there is a range of asset classes invested into; and
- Prudential limits are applied to reduce sector or single asset concentration risks.
The following pie-charts below show the Current Asset Allocation of the Asset Holding Company's investment portfolio as at 30 September 2019, see left-hand chart, compared with the Strategic Asset Allocation (the target portfolio) that the company proposes to transition to over the next 12 months.
The following pie charts illustrate the movement from the Current Portfolio weighted to defensive assets, assets with low volatility and risk of capital loss, towards an increased weighting of growth assets, assets with the potential for capital gain and growing the pūtea.
The board has undertaken a review of the Company’s financial assets to better manage investment risk in an increasingly uncertain and volatile environment. Conscious of the need to sustain and grow the dividend to the Trust that fund its charitable and cultural programmes for the benefit of Ngāti Raukawa, we have adopted an Investment Governance Policy (IGP) so that investment decisions are consistent with best practice. The IGP provides a detailed framework to guide the governance of private market investments, the diversified portfolio of listed securities, and other investment activity the Raukawa ki te Tonga AHC Limited undertakes
To be consistent with best practice and to achieve our targeted returns, we have outsourced the management of the company's investment portfolio to investment specialists. While the Raukawa ki te Tonga AHC Limited board retains the governance responsibility for the company's investments, we have outsourced investment research, due diligence and portfolio design to MyFiduciary. My Fiduciary are independent and experienced investment consultants who provide independent investment research required for asset allocation, fund selection and advisory services that ensure our investments are best placed to provide strong and sustainable returns now and into the future.
Fisheries Assets – Background
In 2002, Raukawa ki Te Tonga received the agreed settlement quota resulting from the Maori Fisheries Act 2004. At this time the Charitable Trust was established as the mandated Iwi Organisation (MIO) to govern/administer fisheries settlement assets. The settlement assets transferred from Te Ohu Kai Moana to the Raukawa ki te Tonga Trust were:
- Fisheries Quota Shares: $3,474,000
- Cash: $945,819
- Income Shares in Aotearoa Fisheries Limited (AFL): $8,959,631 (2,900 shares).
Since 2002, the Raukawa ki te Tonga AHC has purchased additional Paua Quota, non-settlement quota, with a current value of over $3 million.
In 2014, Moana New Zealand issued a one for one bonus share issue taking the Raukawa ki te Tonga AHC's shareholding in Moana New Zealand Limited to 5,800 shares.