How the Trust invests in the present and future vitality of Rongowhakaata
Want to understand how the Rongowhakaata Iwi Trust makes investment decisions to benefit our iwi today, and for generations to come? Our goal is to ensure every dollar spent and every decision made aligns with our values to uplift and empower Rongowhakaata whānau, hapū, and iwi.
Over the tenure of this current Board, at Hui-ā-Tau and Hui-ā-Iwi, we have received immense support for the approach to move away from the deficit and poverty thinking and move towards our vitality, focusing on what we have rather than lamenting what we don’t.
Each year there are similar pātai that pop up so we thought this would be an opportunity to provide some insight into the thinking and journey of the things you sometimes cannot see.
Let’s dive into the information below to learn more
How does our Board make strategic decisions?
Our elected board meets monthly to discuss important iwi matters and ensure progress towards our goals. They work closely with operations to approve strategies and an annual work plan. This collaboration shapes the direction needed to support the iwi’s long-term sustainability and growth while mitigating risks.
During 2022 and 2023, focused efforts through hui ā-iwi and wānanga ā-iwi provided uri with the opportunity to directly inform our strategic direction. This process ultimately ensured and affirmed our identity in Tūranga, enabling the Iwi Trust to produce He Tirohanga Whānui – our 100-year strategy.
Previous strategies and plans had shorter timeframes and were based on external frameworks that prioritised a finance-first perspective. In contrast, He Tirohanga Whānui is grounded in our inamata, onamata, and anamata, focusing on all forms of capital and sustainable returns. It reflects where we stand today as Rongowhakaata uri, with our aspirations guiding the path forward.
How are our assets managed?
The Rongowhakaata Iwi Trust (RIT) manages its assets through a governance framework that integrates iwi values, strategic planning, and legal compliance. Key entities include Tūranga Group Holdings Limited (TGHL), responsible for commercial investments, and the Rongowhakaata Iwi Asset Holding Company (RIAHC), which oversees fisheries assets. Specialist advice is provided by economic and investment experts such as BERL, Craig’s, and Forsyth Barr. Learn more about our iwi assets here
An annual audit is conducted by BDO Gisborne, with financial oversight supported by an in-house chartered accountant serving as Finance Manager. The Board is further supported by the Audit, Risk, and Finance (AR&F) and Appointments and Remuneration (A&R) Committees, ensuring financial integrity, transparency, and accountability. While the Kāhui Kaumātua does not directly manage financial assets, its guidance remains crucial in upholding tika and pono, ensuring alignment with our identity.
Together, these entities and advisors bring expertise and experience to align financial management with Rongowhakaata values, benefitting current and future generations.
Learn more about these committees here
How are we growing our assets?
To grow our assets we have focused on:
1. Governance and Leadership
Standing up and maintaining full membership of the RIT Group governance while also implementing a re-structure to have a fully dedicated operational team has required considerable time and effort, and has been an ongoing focus for the Group since 2020.
A governance system of skilled and experienced Directors and Committee members was invested in so that there is no single point of failure when individuals at governance and management leave so the resilience of the organisation to progress kaupapa can be sustained.
2. Structuring our Assets
· Fixed assets are our properties, we think about these in a 25 year or more investment horizon.
Developing and improving the properties owned by the iwi are a priority. We are in the process of moving property assets to a single management entity, Tūranga Group Holdings Limited (TGHL), for smoother operations.
· Semi-liquid assets are our managed funds and fisheries annual catch entitlement, we think about these in a 3 – 5 year investment horizon.
Craig’s and Forsyth Barr manage our portfolio of funds on our behalf. We have moved cash that was in term deposits into managed portfolios across both advisors to increase the return we are receiving. The sipos for each partner will be reviewed in the new year as part of the ongoing commercial work programme.
Our fisheries assets are leased as part of the Iwi Collective Partnership who manage more than 13,000 tonnes of fish annually. These iwi include Te Rarawa, Ngā Rauru Kiitahi, Ngāi Te Rangi, Ngāti Awa, Ngāti Manawa, Ngāti Porou, Ngāti Ruanui, Taranaki Iwi, Ngāitai, Ngāti Tūwharetoa, Whakatōhea, Te Arawa, Ngai Tamanuhiri and Rongowhakaata. This agreement started in 2021 and is in place for five years.
· Liquid assets is our cash in the bank, we think about these in a 1 – 18 month investment horizon.
We have some cash in term deposits. As these mature we review the need for cash in the current account so that we hold enough money to cover the operational costs of RIT. We know that having too much cash in the current account is not optimal so are working to re-balance this asset class.
3. Planning for Growth
Work has been completed to identity which of our fixed assets are investment ready and which require significant remedial work. The next step is to understand what sequence each asset should be developed and how much that will cost over the next 10 years and longer.
eg. Te Waiohiharore (The Old Railway Station) is a contaminated land site, Heipipi – The Gisborne Court House is tied up in a lease with the Ministry of Justice until 2050 (due to rights of renewal at the time of Settlement).
The Tūranga Group Holdings Directors are providing Trustees with support to ensure these plans are in place ahead of any significant funds being spent or committed.
4. Investment Process
Work has been completed to progress how the Group can work together and independently to grow the asset base with a focus on:
· Identity: What is the historical context of Rongowhakaata to the whenua, moana, awa of the proposed investment?
· Strategic Analysis: Is it aligned to He Tirohanga Whanui and what is the return on investment (the value for uri beyond financial return)?
· Evaluation and Structuring: Partner and financial due diligence – do they align with our values? How leveraged is the organisation? Who owns the organisation and have they been involved in illegal activity? What is their track record to deliver? Who manages the organisation?
· Execution and Reporting: Deal execution, procurement and monitoring.
The Trustees have recently adopted a set of investment beliefs and objectives – come along to the Hui-ā-tau to hear more about these, below is a snippet of what vitality and financial performance might look like.
Our investment horizons are inter-generational. We will balance new developments and long-term endowments that provide sustainable returns over the next 100 years.
We have a preference to use our own resources and uri to achieve our goals, but will also partner as necessary with other organisations and sources of capital that align with our values and investment horizons.
We have an aspirational goal to double the value of our assets over the next decade, but only if this growth aligns with Rongowhakaata values and grows vitality in Tūranga Whenua, Tūranga Tangata and Tūranga Toi.
What are some of our key challenges? (Why do we see deficits in the Financial report)
When you fly into Tūranga, the extent of the paru from the awa and the outfall is unmistakable. It spreads its mass across the bay, leaving a visible trail of destruction.
Our ability to sustain ourselves and enjoy our environment in traditional ways has been severely diminished—or, in some cases, entirely lost—due to successive deforestation projects, flood control schemes, the blatant and ongoing discharge of effluent into our waters, and the intensive horticulture and agriculture practices driving the regional economy.
You measure what you value. A deficit-focused mindset, centered on unemployment rates and socio-economic metrics, continues to shape intervention and investment into Indigenous economies. This narrative persists despite its limitations, something our iwi continues to endure while the regional economy is driven by the traditional "3 F’s" of the Māori economy: Fishing, Farming, and Forestry.
“It was always assumed that with the rights we had as Tūranga iwi to the moana, there were immutable non-negotiable obligations and responsibilities. Today it seems that what were once Atua gifted rights are now man-made able to be bought and sold assets.”
Tutekawa Wyllie, 14 November 2001, Brief of evidence for environmental issues before the Waitangi Tribunal. Gisborne District Inquiry.
The norm has been to measure the success and performance of these assets through colonial and corporate frameworks that largely focus on traditional financial performance metrics. A mindset shift is needed to grow the sophistication of investment strategies in ways that they are not currently being adequately captured.
RIT is in an unique investment position that it does not fit into the traditional investment spectrum like other organisations. Since 2022, the focus has been to move from passive to active investment in iwi assets, prioritising both financial growth and cultural wellbeing to benefit future generations.
Our decisions are shaped by Rongowhakaata identity and mātauranga, not dictated by Western frameworks. This balance allows us to adapt to changing environments and adapt as governments change, just as our entrepreneurial tīpuna did.
Challenges include:
1. Under-Investment in operational personnel for the RIT Group
The increase in employee costs reflects an organizational restructure which was initiated in 2021 and completed in 2023. This resulted in a full complement of senior leadership, a refreshed communications team and two new roles, introduced support for the rangatiratanga work programme across both central & local government. In addition, administrative functions were strengthened, to increase governance support and establish an in-house Finance Manager role.
2. Under-Investment in Fixed Assets
Many of our iwi properties given back through treaty settlement require significant remedial work due to past under-investment. This limits their ability to generate income and slows the transition from passive to active income streams. Prioritising and funding these developments while maintaining financial stability is a key challenge.
3. Balancing Cultural Values with Commercial Realities
Some lessees and business models on RIT properties conflict with iwi values, creating tension between financial pragmatism and cultural integrity. Striking a balance between generating returns and maintaining authenticity is a complex but vital task.
4. Diversifying and Strategically Managing the Portfolio
The current portfolio, while balanced on paper, needs further optimisation to meet long-term goals. Transitioning more investments into fixed assets, managing liquidity needs, and addressing the modest performance of semi-liquid and liquid assets require careful planning and execution to sustain and grow the asset base effectively.
How are we planning for our future? (inflation, return on investment)
The losses incurred in recent years are not sustainable, Trustees have prioritised investment into building a Group structure and strategy to move and secure a more certain future for the group. The capital base received at Settlement in 2011 has grown (modestly) in the last 10 years.
RIT is addressing strategic returns on investment, inflation, and revenue growth through a series of targeted initiatives aimed at strengthening its financial sustainability and aligning investments with iwi values. Here's how RIT is tackling these challenges:
Strategic Returns on Investment
RIT is rebalancing its asset portfolio by increasing the proportion of fixed assets while reducing semi-liquid assets. This growth will be both in terms of increased yield and increased capital value.
The Trust is actively transitioning its investments from passive to active income-generating assets, such as the Nursery at Houhoupiko, to ensure long-term growth.
Professional investment advisors, including BERL, Craigs, and Forsyth Barr, provide strategic guidance to maximise portfolio performance.
Managing Inflation
The Trust is integrating inflation considerations into its investment strategy by linking long-term targets to historical averages, market indices, and other economic indicators.
By reinvesting income and prioritising sustainable asset development, the Trust aims to protect and grow its financial base to stay ahead of inflation.
Increasing Revenue:
The Trust has shifted its focus from reliance on government contracts to generating capital through its own assets, particularly through Tūranga Group Holdings Limited (TGHL).
TGHL's purpose-driven investments embed Rongowhakaata values while focusing on economic returns.
The Trust is exploring co-investment opportunities with strategic partners and considering debt funding for larger projects to accelerate asset growth and revenue generation.
Future Initiatives include
Development of a comprehensive Group Investment Strategy to guide asset allocation and ensure sustainable growth.
Following the recently approved investment beliefs and objectives the Commercial entities are now able to complete their statements of intent and long-term plans about growing the assets aligned with our Group strategic direction.
Completion of property transfers to TGHL to streamline management and maximise asset performance.
Continued focus on developing underperforming properties and aligning all investments with Rongowhakaata vitality.
Strengthening service agreements with commercial entities to enhance operational efficiency and accountability.
These initiatives collectively position Rongowhakaata Iwi Trust to achieve sustainable revenue growth while preserving cultural integrity and protecting its asset base for future generations.
You can find out more about the work programmes of the Iwi trust via our Annual Report here
