Phil Barry said it’s been a tough couple of years for iwi - and investors generally - in the New Zealand economy. Photo / Dean Purcell.
New figures have revealed that the assets of New Zealand’s 10 biggest iwi stand at $8.2 billion.
A recent consultancy firm TDB Advisory report shows the assets only rose by $100m in the last three years. Iwi got a 3.8% return last year, slightly better than 2023.
Director Phil Barry told The Front Page they looked at the financial performances of post-settlement iwi.
“In total, there’s been about 100 iwi settled with the Crown since the mid-1990s. The settlements, if you add them all up, are about $3.5 billion - in the dollars of the day.
“Our best estimate is those assets now are worth around $12 billion. So in a way, it’s the magic of compound interest, you just reinvest the profits.
“They paid out some dividends, but have tended to take a long-term view, and just over time those assets have grown as property values have increased, share prices have increased,” he said.
Over the last decade, TDB Advisory has looked at iwi organisational structure, investment strategies, and financial performance.
“We focus on the top 10 and those account for about $8 billion of assets of the $12 billion total. So, around two-thirds,” Barry said.
Covering everything from property to farming, to managed funds and offshore opportunities, many of these iwi own assets that impact our daily lives.
“Not surprisingly, a lot of it is land. Commercial property. Waikato-Tainui has a lot of investment in downtown Hamilton. The new ACC building, some of the hotels, the IBIS, the Novotels, and a half-share of the Auckland Pullman at the airport.
“Ngāti Whātua Ōrākei is Auckland-centric and has some very important ground leases in downtown Auckland.
“Some of the iwi though have also diversified more and have quite a lot of their holdings now in what we call financial assets. So typically shares or bonds in managed funds. Some are offshore.
“Ngāi Tūhoe in the Urewera, for example, has just over half of their assets in these financial assets currently.
“Ngāti Porou also has similar sort of shares. So, different iwi, different strategies and it’s interesting to see how it’s going over time,” he said.
Barry said it’s been a tough couple of years for iwi and for investors generally in the New Zealand economy.
“Those ‘22, ‘23, and ‘24 years are probably three of the worst in the last 10 years. On average, over the last 10 years, the iwi have achieved a 5% return. In 2024, it fell to about 3%.
“But, actually, that’s not bad compared to the returns that were available to most investors in the New Zealand economy. We calculated what we call a benchmark index and that weighs in according to the sectors the iwi invest in and that benchmark in 2024 was a -5% return.
“Fortunately, many of the iwi are now more diversified. Typically, they have around five or six asset classes, and that diversification can help shield you from those cyclical downturns in any one sector,” he said.
Listen to the full episode to hear more about how iwi invest and where their money goes.
The Front Page is a daily news podcast from the New Zealand Herald, available to listen to every weekday from 5am. The podcast is presented by Chelsea Daniels, an Auckland-based journalist with a background in world news and crime/justice reporting who joined NZME in 2016.
You can follow the podcast at iHeartRadio, Apple Podcasts, Spotify, or wherever you get your podcasts.
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