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Investments Charter

At the November 2019 hui of Te Runanga o Ngāi Tahu, the Investments Charter – a pou within the Haea Te Awa programme- was approved.

The Investments Charter sets out an overarching framework that governs the management of Te Rūnanga pūtea (investment assets) held by Ngāi Tahu Holdings and a new investment entity focused on regional development.

At its core, the Investments Charter:

  • Is goal driven and applies across all Te Rūnanga Group (not just Ngāi Tahu Holdings)
  • Is grounded in our Te Kawenata o Ngāi Tahu and our Ngāi Tahu values
  • Includes the investment preferences identified by Te Rūnanga at its investment philosophy wānanga held in December 2018
  • Replaces the existing Te Rūnanga o Ngāi Tahu Investment Policy Framework

The three investment goals approved by Te Rūnanga are:

  • That a regional investment fund be set up to invest alongside papatipu rūnanga in regional investment opportunities
  • Protect and grow the sustainable real per capita distribution paid by Ngāi Tahu Holdings Corporation to the Ngāi Tahu Charitable Trust
  • Expand the presence and expression of Ngāi Tahu mana within Niu Tireni

The Investments Charter recognises investment managers (e.g. Ngāi Tahu Holdings) should ensure their respective portfolios are adequately diversified so that the failure of any one venture or combination of ventures is unlikely to permanently impair or put at risk the viability of the funds.

The Investments Charter no longer holds Te Rūnanga responsible for setting strategic asset allocation bands or weightings required by the Investment Policy Framework. Instead the onus and responsibility for portfolio diversification (at the level of the investment managers), or indeed investment styles, now rests with investment managers. This governance practice and structural arrangement is like that in place at the Yale Investment Corporation since 1975.

What happens next?

The Investments Charter will be effective from 1 July 2020.

This will ensure alignment across Te Rūnanga Group, align with the launch of the Regional Development Investment Fund, and align with the new financial year.

Ongoing communication with papatipu rūnanga will occur with a round of hui planned with each papatipu.