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Pūtea: Should iwi consider pooling resources via investment funds? - YouTube
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Bay of Plenty iwi Ngati Awa
[2]
and the New Zealand
Superannuation Fund
[5]
are investigating whether
it's feasible to set up
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an investment fund for various iwi
to pool their resources.
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Earlier this week I spoke
with Maori economist Brook Grant
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about the issue.
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My first question to him
was to summarise
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what this investment fund
is and how it would work.
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It's a pooling of money.
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Each iwi has money,
as does the Government.
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This will be pooled together
and then set aside.
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If they come across
an investment opportunity,
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the money is there
and ready to invest,
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rather than having to 'look up the
black book' and make calls.
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So what is the benefit for iwi,
of this investment fund?
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The majority of our Maori groups
and iwi are unable financially,
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to seize the investment
opportunities independently
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that the fund is targeting, because
of the size of the opportunities -
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around $50 million in value.
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But our Maori groups could
if they combine.
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Also, they might not have expertise
for these opportunities.
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Again, if they come together
they can pool their resources -
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money and expertise.
[100]
And so Brook what is the benefit
of working with superannuation fund?
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First of all they have
a lot of money.
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Secondly, they have
a lot of expertise.
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They are intelligent, they
are skilled when it comes to this.
[119]
But must we join the Government
and NZ Super,
[123]
to be able to do these
investments all the time?
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No. Our Maori groups together
can do it.
[131]
We've already witnessed that
in the forestry industry
[137]
as well as other industries.
[139]
I've heard there is a potential
dairy plant in Kawerau
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being investigated.
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It's a group of Maori entities
coming together
[151]
and pooling their resources –
without the government.
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So is this something all iwi
should get on board with?
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Some considerations –
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firstly if we go back
to what I said earlier
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these investment opportunities
require a lot of money.
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Most of our iwi on their own
may not have this money.
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Secondly, they need to carefully
think things through.
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The majority of the time they would
invest in these opportunities
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and have to wait for three years,
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sometimes for more than five years,
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even up to ten years
before profits start to be made.
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So if you are an iwi that
is relying on regular cash flow,
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then you're going to fall
into a spot of bother
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with this type of investment.
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Final question
– what should iwi do
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so they can partner up
with a superannuation fund
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such as the one
that we've been talking about?
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In my view
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one important thing to do is to
develop a strong knowledge base.
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That's something that I'm currently
really focusing on.
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I'm running workshops
and classes for Maori groups,
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iwi and hapu so they can learn the
foundations of investment.
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