Chair's Report

He Waka Hourua, he Waka Eke Noa
E mihi ana ki ngā mate kua wheturangitia haere hoki atu
ki Hawaiki nui, Hawaiki roa, Hawaiki Pāmamao.
Huri noa ki a tatou te kanohi ora, e mihi ana.
He uri āhau no Ngāti Kuri, Te Rārawa, Ngāpuhi, Ngātiwai
No Te Tai Tokerau ahau
Kei te noho au kei Whangārei Terenga Parāoa
Ko Walter Wells toku ingoa
Tēnā koutou katoa

Having sharpened our intent in April 2020 to impact across four focus areas, we are increasingly recognising the interconnectedness and overlaps between Increased Equity | Hāpai Te Ōritetanga, Social Inclusion | Whakauru Mai, Regenerative Environment | Whakahou Taiao and Community Support | Hāpori Awhina.

Te Ao Māori reminds us of the binding interrelationship of all living and non-living things. We know that to achieve our moemoeā of Whatītike Oranga | Enhanced Lives, we need to actively take a holistic approach and understand the total system, not just parts of it. Within this we remain a targeted grantmaker, committed to priority communities across our rohe: Tangata Whenua, Pacific Peoples, communities of South Auckland, communities of Te Tai Tokerau, children and young people, new migrants, former refugees, people living with a disability and rainbow communities.

We also prioritise support for initiatives, actions and activities which focus on increasing understanding and giving effect to Te Tiriti o Waitangi. Alongside this is our firm intent to focus inwards and do this mahi as an organisation. Last year saw the inclusion in our Trust Deed of a specific commitment to have regard to the principles of Te Tiriti o Waitangi in interpreting the Trust Deed and in performing our obligations under the Deed. To this end, our Governance manual was updated this year to state that Trustees (and therefore staff) are committed to ensuring that the Foundation meets its obligations under Te Tiriti o Waitangi, and takes into consideration the needs of Aotearoa New Zealand’s diverse society.

We do not underestimate the significance of this mahi, as the community trust for Te Tai Tokerau and Tāmaki Makaurau. We also acknowledge the breadth of skills, and the time and space required to navigate this pathway together; authentically and inclusively, taking everyone in the waka with us and going at the correct pace. We look forward to charting our own course, guided by our Kaumātua Kevin Prime and others, as we undertake this journey.

Climate change action – mitigation and adaptation to the threats posed by climate change – is another key issue that has a bearing on our core mahi, arching across each of our focus areas and impacting our isolated and exposed communities. We will need to be proactive in addressing this across our grantmaking and other strategic activities, internally and in our investment portfolio.

Grants

As the global Covid-19 pandemic continues, our attention has also turned to the recovery post Covid-19, with a focus on community resilience and wellbeing, and a heightened interest in workforce capability, digital equity and food sovereignty.

Over the year to 31 March 2022, the Foundation approved 775 grants to not-for-profit organisations and community initiatives. The value of this support was $52.6m ($49.9m in the 2020/21 year – a rise of 5.4%). This included a commitment of $6.1m distributed to a range of organisations to support relief, recovery and strengthened community resilience in response to the COVID-19 pandemic. Overall, the year concluded with more funding approved than in the previous 11 years, including a sharp rise in the value and quantity of both multi-year grants and COVID-related support.

Two unique programmes deserve special note:

• After five years as a stand-alone fund, our Gulf Innovation Together Initiative (G.I.F.T) concluded its grantmaking in March 2022 contributing $3.6m across ten kaupapa in its final year. Foundation North remains committed to Tīkapa Moana Te Moananui-ā-Toi and her people through our other funding avenues and activities.
• Through a Participatory Grantmaking approach, jointly funded with Ministry of Youth Development, 32 applications were funded through recommendations made by young Pacific leaders.

We are committed to exploring the potential for impact investment to deliver on the Foundation’s strategic priorities. Impact investment widens the set of tools available to include the use of capital for creating positive impact and is an additional financing option to advance social and environmental solutions. Over the 2021/22 year two investments were made through our externally managed impact investment fund Te Pae ki te Rangi.

Capital, Investments and Reserves

Our investment portfolio value grew from $1.636b (at year end 2020/21) to $1.725b at 31 March 2022. For the financial year, the Foundation’s investment portfolio returned 8.7% (net of fees) relative to a 4.3% return of the benchmark composite return (outperformance of 4.4% over the financial year). As a long-term sustainable investor, the Foundation considers long-term performance and the ten-year return to 31 March 2022 (net of fees) was 8.7% against the benchmark composite return of 7.2%. Overall, the investment portfolio remains well-positioned.

The Foundation is the kaitiaki of the funds for the people in Tāmaki Makaurau and Te Tai Tokerau in perpetuity. As such, the Foundation has a financial as well as social responsibility to its stakeholders. The portfolio is invested in line with our Statement of Investment Policy & Objectives that includes our Responsible Investment policy. The Foundation takes a pragmatic approach to responsible investment and encourages further evolution in pursuit of continuous improvement. As all investments create impact the Foundation aims to minimise harm and seek positive impacts while generating wealth. The Foundation strongly believes that climate change is an urgent global issue to address and supports actions to help deliver the goals of the Paris Agreement. We are a signatory to the United Nations Principles for Responsible Investment (UNPRI), and our performance against the Principles is measured.

Our Trustees

Firstly, congratulations go to my fellow Trustees Maxine Shortland and Mel Hewitson, who were recognised respectively in the 2021 Queen's Birthday Honours and 2022 New Year Honours lists as a Member of the New Zealand Order of Merit.

My first full year as Chair has been an incredibly busy one. August 2021 saw much change, resulting in almost half of the Board members being welcomed aboard as new Trustees. I acknowledge departing Trustees Bhav Dhillon (my predecessor as Chair), Chris Severne and Daniel Nakhle. In turn we were delighted to welcome Tevita Funaki, Sara-Jane Elika, Hana Maihi, Stephen Park, Nurain Janah, Ling Ling Liang and Stephen Titter – each of whom brings a rich diversity of experience, whakaaro and kōrero to our table. It has been a pleasure getting to know each other online, and also quite staggering to reflect that the virtual space is how we conducted 100% of our mahi in the last financial year!

Looking to our staff, I wish to recognise the contribution to our mahi by the Foundation’s former Pou Ārahi, Aroha Harris. Aroha left Aotearoa in December 2021 to support her whānau in Australia - we wish her well.

To my fellow Trustees, Foundation management and staff, and our wider community of grantees and partners, my sincere gratitude to you all. Navigating together is a truly fitting description of our efforts as we journey forwards to do our impactful mahi.