Financial Investment

Reflecting on the past year, we remain committed to growing our investment returns without compromising our values, people, or the planet. Our strategic investment approach is building a portfolio that promotes sustainability through ethical investment, operating with an intergenerational mindset.

Our portfolio returned 7.1% for the financial year, which was behind the weighted benchmark of 7.7%, but exceeded our SIPO target of CPI + 4.5% (7% total for the year ended 31 March 2025). While disappointing from a relative perspective, our strategic asset allocation has been structured to allow us to sustain periods of underperformance during volatile and uncertain market times. Our absolute returns will allow us to sustainably continue to deliver the level of community funding into the future.

The 2025 financial year presented various global challenges for investors, particularly the reshaping of the international trade environment and the uncertainty that it created. Rātā, like most investors, was not immune to these events; however, our strategic asset allocation and risk management policies cushioned the impact. We continued to take positive steps toward achieving our ESG goals and, while this is an ongoing journey, the steps we have taken reflect our aspiration to align our investments more closely with long-term sustainability and community wellbeing.

Over the 10 years to 31 March 2025, we delivered an average return of 7.6% per annum, 1.1% ahead of the benchmark and 0.3% ahead of our SIPO target. We cannot rest on the results of the past. Our recent changes to our asset allocations, coupled with our direct investment strategy and risk management, give us confidence that we will be able to continue to create lasting value and benefit for our funding regions.

Despite a challenging global outlook in the first quarter of 2025, we grew our pūtea by $10m during the financial year to $695m while distributing more than $26m to our communities. During the financial year, Rātā cumulative investment in community organisations since 1988 passed $600m. Click here for a copy of our RF Performance Report March 2025.

On 1 April 2025, Rātā acquired 25% of Alvarium (NZ) Management Holdings Limited, which owns ethical KiwiSaver provider Pathfinder Asset Management and private wealth manager Alvarium. Investment in Alvarium strongly aligns with Rātā guiding investment principles. It marks the first significant deployment of funds to our strategy of having 30% of the portfolio invested directly with like-minded, high-performing New Zealand entities. The transaction settled after our 31 March 2025 year-end, and as a result, it is not reflected in this financial year’s performance.

Rātā will continue to actively seek direct investment opportunities that offer enduring and sustainable revenue through highly responsible means, with the end goal of increasing the funds we have available for distribution in our funding regions.

For more information on our investment activity, please visit Rātā Invest.