For release 19 July 2017
Post-settlement iwi making strong returns with capacity to
increase growth further
An extensive financial analysis of 31 post-settlement iwi/hapū shows all recorded a positive profit on commercial assets
in the last reported year, with an average return on assets of 8.2%.
“In unique and challenging circumstances iwi are demonstrating their ability to balance risk and reward to deliver
strong commercial outcomes” ANZ Head of Māori Relationships David Harrison said.
By comparison, New Zealand’s 30 largest listed companies had an average return on assets of 7.7% and our five largest
listed property trusts an average of 5.6% for the same period.
Te Tirohanga Whānui – the annual ANZ Māori Business research series - this year collaborated with 31 iwi/hapū, with a
combined asset base of $4.6bn.
ANZ said the report shows clear evidence of the trend in iwi moving from asset holdings in cash and managed funds into
more direct and active investment over time.
“For New Zealand businesses looking for ‘transition of ownership’ solutions, a thriving iwi/Māori business sector offers
new options with a real point of difference”. David Harrison said.
“Iwi are looking for opportunities to invest locally, and in a capital constrained environment where we increasingly
look overseas for investment, that is a great story for New Zealand.”
“We are seeing more collaboration among iwi, not just in sharing information, but also to gain the scale needed to
target bigger deals. The new co-investment fund being scoped by Ngāti Awa, the NZ Super Fund, and the Minister of
Business, Innovation & Employment is a perfect example.”
Ngāti Awa Group Holdings chief executive Geoff Hamilton, who contributed information to the report, said the
co-investment fund would allow Māori investors to "access and participate in much larger scale opportunities than could
be achieved individually".
Te Tirohanga Whānui - which delivers a new series of ‘industry’ averages to help iwi review their investment strategies
and planning processes – also highlighted low debt to equity ratios with average bank debt to total assets being 14%
reinforcing the measured approach being taken by most iwi.
“However there is still headroom for iwi to use more external funding, within prudent levels, to help accelerate their
growth.” David Harrison said.
Despite the quantum of assets held by iwi the median assets per tribal member is just $9,000 highlighting the enormity
of the challenge faced to try and sustainably grow and leverage these assets for all future generations.
Iwi who collaborated in the research already have the results and have been using them to help inform their investment
decisions. Tainui Group Holdings’ GM of Strategy & Finance, Lyndon Settle, commented “this was a most valuable set of insights that has supported our mahi going forward”.
Ngāti Kuri Chair, Harry Burkhardt “thanked ANZ for providing an insight into the journey iwi are on around wealth
creation”, noting “this was but one KPI we use in our journey to tino rangatiratanga.”
Almost all iwi that took part saw value in continuing this collaboration. Koau Capital Partners - providers of
contracted management services for several iwi that participated - noted “it would be a valuable resource to have an
“As the post settlement environment becomes the norm for iwi, each are positioning themselves to make a meaningful
difference to their own people – this process though, will have positive flow on effects for New Zealand as a whole.”
David Harrison said.