This year, our strategic review, facilitated with the able support of our Centre for Social Impact, gathered the perspectives of many key stakeholders, including a range of community leaders and organisations supported by the Foundation.

We hear from them that our strategy is on the right track towards achieving our vision of enhanced lives. We also hear community affirmation for our targeted approach to supporting mahi that is for, by and with our priority communities. As Trustees guiding the strategy this confirmation is both humbling and comforting to receive.

We hear encouragement for continuing to fund in relational and collaborative ways – and when I think about our theme of rangatahi leadership, the Pasifika Waymakers Fund comes to mind. A group of Pacific young people in South Auckland who joined together to design and roll out their own fund, their way, for their communities. Participatory approaches like this not only enable rangatahi leadership, but also provide learnings that strengthen our grantmaking practice.

Under the leadership of Trustees Walter Wells and David Whyte, and the guidance of Tukaha Milne (Kaihautū Ngatahi), the Foundation continues our Te Tiriti journey. In February we were proud to share our short film with others in philanthropy and the wider community sector. ‘Kia wātea ai te ara | Our journey to be a Te Tiriti led organisation’ documents our learning and experience so far and pays tribute to the leaders who have walked alongside us.

A key milestone in that haerenga (journey) this year, was the strengthening of our relationship with mana whenua Ngāti Whātua Ōrākei through the signing of a kōtuitanga – a document that signifies the lashing or joining together of our shared purpose, and records aspirations for the future development of our relationship together.

Te Tiriti o Waitangi also informs our climate actions. We apply an intergenerational mindset to how we commit our resources to invest and fund, and to how we partner with communities, including values of kaitiakitanga (guardianship and protection) and kotahitanga (togetherness). Further into this annual report, I invite you to read more about the collective action we are taking with other trusts, and our granting and operational activities in the climate action space.

Turning to our Board, I offer my gratitude to Chair Walter Wells, and Deputy Chair David Whyte, whose service in these roles ended in June 2024. The Board acknowledges your dedicated leadership and steady guidance over the last three years. Congratulations to my fellow Trustee Ngaire Rae on her successful election as Deputy Chair.

I would like to thank and pay tribute to those Trustees whose service on our Board has come to an end: to Mel Hewitson who has completed two consecutive four-year terms, and Nurain Janah who relocated out of our rohe last year creating a vacancy.

Our Board, leadership and staff continue to paddle together as a team in the spirit of our value of kia kotahi te hoe; inspired and energised by today’s emergent leaders, cognisant of our dynamic environment and mindful of the roles we can all play in creating good conditions for that leadership to flourish.

Most importantly, we are privileged to navigate with our communities whose amazing mahi contributes to our thriving communities - ngā mihi maioha.

Investment Performance

The financial year saw strong investment returns in most of our asset classes, in particular, global listed equity, infrastructure and alternatives. While investment markets continued to be volatile, reflecting geopolitical tension and the uncertain economic outlook, our portfolio has benefited from the strong gains in technology stocks particularly in the later part of the year.

At year end the value of our portfolio was $1.757 billion with reserves well above the real capital base. General reserves held by the Foundation are $543.7 million (2022/23: $432.6 million).

Our investment gain for the year was $217.8 million (2022/23: $52.2 million loss), which translated into a return of 13.9 % net of fees (2022/23: -3.2%). This was an excellent return for the year, supported by strong performance in global equities, alternatives and infrastructure asset classes.

The investment strategy and composition of the Foundation’s portfolio are subject to continuous review, with a view to improving investment outcome as well as our contribution to climate transition. During the year, new alternative investments were introduced while others were rebalanced. A high growth and diversified portfolio across many types of assets and geographies is needed to achieve our investment objective and to provide the resilience to withstand financial shocks. As a long-term investor we have confidence our portfolio is well positioned to continue its growth.

The Foundation has also committed further capital to Te Pae Ki Te Rangi, the impact investment fund managed by Soul Capital. The fund has undertaken ten investments to 31 March 2024, and committed approximately $20m to a range of investments from housing, technology for the Deaf community to a debt consolidation company. Te Pae Ki Te Rangi’s investment mandate is in line with the Foundation’s focus areas: seeking to invest for impact in Increased Equity, Social Inclusion and Regenerative Environment.