Investments

BayTrust’s investment objective is to protect and equitably grow the Trust’s investment capital so that it can continue providing returns for distribution to current and future Bay of Plenty communities.

As outlined in our Statement of Investment Policy and Objectives (SIPO), BayTrust invests the assets of the Trust across a broad range of diversified and, over time, sustainable investments.

View Statement of Investment Policy and Objectives

Our investment objectives

BayTrust’s investment approach is designed to:

• maximise the total amount available for distribution to Bay of Plenty communities over the long term, while maintaining a prudent level of investment risk;
• maintain the real value of the Trust’s capital;
• provide a stable level of funding over time;
• maintain equity between current and future generations; and
• align our investments with long-term environmental and social sustainability.

Following a review of BayTrust’s 2030 strategies in December 2025, the Trust reaffirmed its investment objective of achieving an average annual inflation-adjusted, or real, total return of 5%, after investment fees and before spending, over a full market cycle.

Supporting communities today and into the future

BayTrust’s spending policy is to have available at least 4% of the average value of the investment portfolio over the previous 12 quarters.

The difference between the Trust’s 4% spending rate and its 5% real investment objective provides a buffer for long-term population growth in the Bay of Plenty, which has historically averaged approximately 1%.

This approach supports BayTrust to fund communities today while protecting the value of the Trust for future generations.

Growing and protecting the Trust

BayTrust’s investment fund was approximately $286 million as at 31 March 2026.

Since becoming a separate investment entity in 1997, when the Trust held approximately $89 million, BayTrust has significantly grown its investment base while also distributing approximately $130 million into Bay of Plenty communities.

This long-term approach allows the Trust to provide for inflation and population growth, as well as maintaining resilience through periods of challenging investment performance.

How our investments are governed

The BayTrust Board is responsible for establishing the Trust’s investment objectives and policies as set out in the SIPO.

BayTrust’s Investment Committee supports the Board by:

• monitoring compliance with the SIPO;
• making recommendations to the Board;
• overseeing investment manager selection; and
• monitoring the Trust’s investment portfolio and performance.

BayTrust retains Cambridge Associates as its investment adviser, providing ongoing independent advice and recommendations across the Trust’s investments.

Responsible investment

BayTrust believes responsible investment is an important part of achieving strong long-term investment outcomes.

We integrate environmental, social and governance considerations into our investment approach and expect our investment managers and advisers to incorporate these considerations into their investment processes.

As a perpetual investor, BayTrust believes investing sustainably supports both our long-term investment objectives and our responsibility to current and future Bay of Plenty communities.

Climate change

BayTrust recognises that climate change presents a serious long-term risk to both investment returns and the communities we serve.

The Trust is committed to transitioning its investment portfolio towards investments consistent with a low-carbon, prosperous, equitable, healthy and safe society by 2050, or earlier where practical.

Where possible, BayTrust measures the carbon footprint of its investment portfolio and is working to reduce portfolio emissions without materially affecting the Trust’s overall risk and return objectives.

Our approach includes:

• transitioning towards robust and evidence-backed lower-carbon investments;
• targeting an approximately 5% annual reduction in the investment portfolio’s carbon footprint; and
• investing in a Bay of Plenty opportunity that can help offset the portfolio’s expected residual emissions by 2050.

Our responsible investment principles

BayTrust will not invest in industries or sectors that:

• are contrary to New Zealand legislation or current government policy;
• are clearly inconsistent with BayTrust’s purpose of benefiting Bay of Plenty communities; or
• are expected to negatively affect long-term environmental or social sustainability.

As part of BayTrust’s 2030 strategic review, the Trust reviewed and retained its strategic 85% growth asset allocation.

As at March 2026, approximately 84% of the Trust’s portfolio was invested in growth assets.

Responsible Investment Association Australasia