Quayside is a responsible and commercially focused investor that aims to deliver sustainable, intergenerational returns. Its goal is to grow Quayside’s revenue streams for the benefit of stakeholders, with investment decisions measured against industry benchmarks. Around 20 per cent of Quayside’s profits are retained to enhance regional development. It has a focus on diversifying its portfolio to ensure a more stable dividend and provide a buffer against market fluctuations.
In addition to its majority shareholding of Port of Tauranga, Quayside has diversified its asset base to include a share investment portfolio, private equities and other asset investments, as well as $200 million of Perpetual Preference Shares which are listed on the New Zealand stock exchange. It also targets long-term commercial returns through the investment and management of infrastructure assets, including property, across the region.
UNIQUE STRUCTURE FOR
As the arm’s length investment organisation for the Bay of Plenty Regional Council, Quayside is a unique structure for a majority port shareholding in New Zealand. While a supportive shareholder of Port of Tauranga, it enables the company to perform independently for the best commercial outcomes without political interference. In 2012 the New Zealand Productivity Commission highlighted that the owner behaviour of the Bay of Plenty Regional Council, via Quayside, in treating the Port of Tauranga as a financial asset rather than an asset to control was one of the key reasons that Port of Tauranga was New Zealand’s best performing port.
Quayside’s ability to act as either a strategic or a financial investor sets it apart from most other institutional investors. Quayside is able to adopt a longer investment time horizon and can consider other merits such as regional and environmental benefits when evaluating investment proposals. Quayside’s investment model is based on partnership, frequently seeking to align with respective industry experts when making investment decisions.
When determining opportunities and priorities for strategic investment, Quayside’s focus is on its ability to support the growth of capability, deliver quality infrastructure and facilitate good economic and social outcomes for communities throughout the Bay of Plenty region, both now and in the future.
|Marketable Securities||Listed securities with a focus on intrinsic value of companies irrespective of changes in traditional indexes.||Investment portfolio may invest in a diversified mix of New Zealand, Australian and international bond and equity markets.|
|Private Equity||Investing either directly into portfolio companies or into private equity funds. Seeking return premiums for investing in less liquid assets.||Venture capital, growth capital or buyouts on a direct and indirect basis. Targeting long-term returns and regional growth opportunities.|
|Alternative Assets||Investments in liquid, non-traditional funds with strategies providing diversity of return streams.||Externally managed mandates including discretionary hedge funds, systematic hedge funds and event-driven strategies.|
|Real Assets||Investing in, and managing, a portfolio of long-term, physical assets that generate attractive, risk-adjusted returns through economic cycles.||Real estate, infrastructure, forestry, horticulture and aquaculture assets gained through private markets.|
|Cash||Ensuring sufficient access to daily and short-term liquidity while maximising available returns.||Cash and term deposits.|
EXAMPLES OF OUR
The following case studies on initiatives that Quayside is involved in reflect its underlying philosophy when making decisions on strategic investments. These are:
- That they are aligned to the values of the Māori economy of taking a long term, sustainable approach, building capability and caring for the environment (e.g. Huakiwi, Mystery Valley);
- That they support the growth of innovative businesses (e.g. WNT Ventures, Oriens Capital);
- That they facilitate infrastructure projects that are catalysts for economic development (e.g. Regional Infrastructure Fund); and
- The investment in property and other real assets that support the economies and aspirations of local communities (e.g. The Vault on Spring, Rangiuru Business Park, Lakes Commercial Development, Mystery Valley).