The New Zealand Superannuation Fund (NZ Super) has sold a 2.5% stake in Kaingaroa Timberlands, New Zealand's largest forestry business, to a collective of six iwi organisations.
NZ Super remains the largest stakeholder in the business, with a 38.75% share. Other major stakeholders include Canadian pension fund, Public Sector Pension Investment Board at 30%, and an affiliate of the President and Fellows of Harvard College at 28.75%.
The group of iwi have called themselves the Kakano Investment Limited Partnership (Kakano), and comprise Ngati Rangitihi, Ngati Whakaue Assets and Te Arawa River Iwi Limited Partnership, Ngati Whare, Raukawa, Te Arawa Group Holdings Limited and Tuwharetoa.
NZ Super chief executive Adrian Orr said pension funds investing next to an iwi collective was a good fit.
"The involvement of Kakano is also consistent with the NZ Super Fund's strategy to co-invest alongside partners with similar objectives and long-time horizons. Iwi are natural investment partners for the NZ Super Fund and our hope is that this deal opens up further domestic co-investment opportunities with iwi and iwi collectives."
He went on: "By pooling their capital and capability, these six iwi have been able to access a sizeable, highly strategic investment opportunity that will benefit future generations. This is an exciting and ground-breaking step forward for New Zealand and for the Maori economy."
Kakano chairperson Vanessa Eparaima said: "This investment shows the value in working collaboratively with like-minded and appropriately structured and resourced iwi. Individually we could not make this deal happen - collectively we have."
Around 150 delegates attended Financial Standard's inaugural Best Practice Forum in Managed Accounts held in Sydney in August. Financial Standard also launched a new magazine: FS Managed ... Watch video
At this year's PIMCO Secular Forum, the company's global executives set themselves the challenge of taking a three to five year view and anticipate where the market would be against what investors would ... Watch video
What are the key challenges advisers face when building retirement portfolios for clients? Watch Joe Fernandes, Head of Global Investment Solutions at Colonial First State Global Asset Management. Watch video
The pool of investable funds in the retail sector is ever growing, and as investors become more sophisticated the appetite for global equities is only going to increase. In this video, Noble says with ... Watch video
Get it Daily
FREE to your inbox, get the Financial Standard Daily Email.