Maori commercial entities make 8.2pc average annual returns

Auckland Airport's Novotel, an asset owned partly by Waikato-Tainui.

Maori iwi and hapu who have settled Treaty of Waitangi claims earned 8.2 per cent average returns from their assets in the past year, more than double current trading bank deposit rates.

Te Tirohanga Whanui, the annual ANZ Maori business research series, did a financial analysis of 31 post-settlement iwi and hapu and found all recorded a positive profit on commercial assets with an average return of 8.2 per cent.

Bank deposit rates are hovering around just under 4 per cent.

ANZ said the report was clear evidence of the trend for iwi to move from asset holdings in cash and managed funds into more direct and active investments which could generate higher annual returns.

David Harrison, ANZ head of Maori relationships, said the report showed a thriving business sector.

"We are seeing more collaboration among iwi, not just in sharing information, but also to gain the scale needed to target bigger deals," he said, citing a new co-investment fund being considered by Ngāti Awa, the New Zealand Super Fund, and the Ministry of Business, Innovation and Employment.

The report said: "Most top performers had less than 25 per cent of their assets in cash and managed funds, generating an average underlying return of 6.5 per cent. Conversely a couple of top performers achieved underlying returns of 5.7 per cent through almost exclusively investing in managed funds and keeping commercial overheads to a minimum."

The report showed low debt-to-equity ratios with average bank debt to total assets being only 14 per cent which is regarded as a particularly measured approach.

The 31 iwi and hapu are Maungaharuru-Tangitū, Ngā Rauru Kītahi, Ngāi Tahu, Ngāi Tāmanuhiri, Ngāi Te Rangi, Ngāti Apa, Ngāti Apa ki te Rā Tō, Ngāti Awa, Ngāti Hauā, Ngāti Hineuru, Ngāti Kahungunu, Ngāti Kōata, Ngāti Kuri, Ngāti Mākino, Ngāti Manuhiri,
Ngāti Mutunga, Ngāti Mutunga o Wharekauri, Ngāti Porou, Ngāti Pūkenga, Ngāti Rangitihi,
Ngāti Whare, Ngāti Whātua Ōrākei, Raukawa, Rongowhakaata, Taranaki, Taranaki Whānui ki te Upoko o te Ika, Te Aupōuri, Te Rarawa and Waikato-Tainui.

READ THE FULL REPORT HERE: