Cam Gracey, Chief Financial Officer, shares how Rātā evolving investment strategy is delivering strong returns and deeper impact.

Investing with Intention

At Rātā Foundation, our investment strategy is more than numbers—it’s about purpose. By embracing strategic diversification, we seek to grow our investment returns without sacrificing people and the planet.

We use a balanced mix of asset classes to meet our financial goals while managing risk. Our diversification strategy includes actively pursuing direct investments that generate sustainable, enduring revenue—supporting both financial resilience and social impact.

Our Direct Investment strategy was born from a desire to grow our real capital base and increase our investment in our funding regions in a manner that aligns with our ESG goals and promotes financial prosperity without compromising our strategy or our commitment to all people and the planet.

Core to direct investment at Rātā is co-investing with trusted New Zealand private equity fund managers—like Direct Capital—and partnering with like-minded entities, such as our 25% stake in Alvarium Wealth Management Holdings.

These investments help us unlock the potential of the New Zealand economy while fostering an equitable and sustainable society.

Highlights of performance by Asset Class for the Financial Year

Listed Equities, which comprise Trans-Tasman, Global and Emerging Market, returned a net (i.e., after fees) of 3.9%, 8.8% and 7.4% respectively.

Private Equity, which includes New Zealand-based managers we classify as Direct Investments, delivered a 7.4% return. Our Private Equity holdings are spread globally, allowing us to benefit from diversification when individual geographic regions face specific headwinds.

Private Debt had an average year, meeting benchmark with an 8.1% return.

Unlisted Infrastructure achieved a return of 8.6%, consistent with benchmark, while Unlisted Property beat benchmark by 2.4%.

Community Loans and Local Venture Investments are designed to achieve both financial and social returns. At year end, their weighted average interest rate was 4.91%.

Performance by asset class for the financial year:

Private Equity includes New Zealand based managers classified as Direct Investment

Our portfolio allocation by asset class, excluding Community Loans and Local Venture investments, at year end was:

We maintain a stable and growing income by providing strong, long-term risk-adjusted returns that support our community investment goals. This is achieved through robust risk management and compliance tools. 

We remain committed to being a responsible and ethical investor, integrating ESG considerations into our decision-making processes, and fostering strong partnerships to support our mission.

Click the link to learn more about our Strategic Investment Objectives and Policies (SIPO). To follow us on our investment journey, visit www.ratainvest.org.nz or subscribe to the latest news.

We sincerely thank you for your continued support and trust in Rātā Foundation over the last year.