Chair's Report • Foundation North Annual Report 2024/2025

Michelle Tsui

Chair

It gives me great pleasure to present this report on behalf of the Board of Foundation North.

In considering our theme of Whiringa Whaimana | Relational Connection, there are lessons from the ecosystem of the natural world that we can draw on. Relationships based on respect and reciprocity are the foundations that support the whole ecosystem; these help sustain the ecosystem when times are tough, when we are thriving in times of growth, and everything in between!

Guided by community voices that contributed towards our strategic review last year, reaffirming and reinforcing our strategic intent, we have channeled our funding increasingly towards initiatives that are clearly by, for and with our priority communities.

Analysis of our funding activity across our four focus areas reveals good progress towards achieving the kinds of impact we all want to see in our communities. Trustees are equally interested in ways the Foundation can be impactful through our non-funding activities, using all of our organisational levers in support of system change goals such as those we have for climate action. These include growing our capability for strategic influence and advocacy alongside our grantees, and collaborating with others to support collective impact and social cohesion. These are ako spaces for us - where our values, the centering of mana-enhancing practice and Te Tiriti considerations guide us.

Turning to our Board, I offer my gratitude to former Chair Walter Wells, and Deputy Chair David Whyte, who performed their last duties in these roles in May 2024. It is wonderful to still have their wisdom and experience around our table as Trustees.

I pay tribute to departing board members Pramjit Rai Suchdev and Mel Hewitson, whose dedicated service on our Board ended in January 2025, having served one and two terms respectively. In the same month we welcomed two new Trustees, Nicholas Albrecht and Vijay Goel; I look forward to the contributions they will make to all aspects of our governance activities in the service of our communities.

In March 2025, Peter Tynan announced his decision to step down as CEO, after six years of dedicated service. Trustees and staff respect his decision to move on and warmly thank him for his significant contributions. Dylan Lawrence was welcomed aboard our waka as our new CEO on 4 August 2025. We look forward to his leadership as we advance our vision of enhanced lives.

It is our privilege to navigate together with the communities of Tāmaki Makaurau and Te Tai Tokerau - to enable, tautoko and champion community-led impact, supporting with connections, tools, resources and pūtea.

The financial year saw positive investment returns in most of our asset classes despite investment markets being particularly volatile over the last quarter of the financial year. Geopolitical tensions and an uncertain economic outlook saw sharp listed equity market declines in February and March, partially offsetting gains made earlier in the year. Our best performing asset classes were infrastructure, property and global equities.

At year end the value of our portfolio was $1.794 billion with reserves remaining well above the real capital base. General reserves held by the Foundation are $542.4 million (2023/24: $543.7 million). Our investment gain for the year was $106.7 million (2023/24: $217.8 million gain), which translated into a return of 5.0% net of fees (2023/24: 13.9%). While the return for the year was below our target (7.0%), as a long-term investor we remain confident that our diversified investment portfolio remains well positioned for the future.

The investment strategy and composition of the Foundation’s portfolio remain subject to continuous review, with a view to improving investment outcomes as well as our contribution to climate transition. A diversified portfolio across many types of assets and geographies is needed to achieve our investment objective and to also provide the resilience to withstand financial shocks.

The Foundation continues to support Te Pae ki te Rangi, the impact investment fund managed by Soul Capital. The fund has undertaken 16 investments to 31 March 2025 and committed approximately $20.8m to a range of investments from community housing, accessible education technology and climate friendly consumer cleaning products. Te Pae ki te Rangi’s investment mandate is in line with the Foundation’s focus areas: seeking to invest for impact in Increased Equity, Social Inclusion and Regenerative Environment.