Impact Investment

BayTrust holds its investment assets on behalf of currentand future Bay of Plenty communities. Alongside generating the financialreturns that support our granting, we believe our investment capital can alsobe used to create positive and measurable social and environmental impact.

Impact investing is one of the ways we use our funds held tohelp accelerate bold and meaningful change across the Bay of Plenty.

What is an Impact Investment?

An impact investment is an investment made with theintention of generating both:

• a financial return that reflects the risk of the asset; and
• provides  a positive, measurable social or environmental impact.

Impact investments are different from grants. We expectinvestments to generate an appropriate risk-adjusted financial return and tohave a clear pathway for repayment or realisation.

We are not generally seeking concessionary financial returnsin exchange for impact. Instead, we look for opportunities where strongfinancial and impact outcomes can be achieved together.

Where possible, we seek impact that benefits the Bay ofPlenty and its communities.

Why is BayTrust interested in Impact Investing?

BayTrust's purpose is to accelerate bold and meaningfulchange, assisting Bay of Plenty communities and our environment to flourish.

BayTrust manages an investment portfolio of approximately $286million, held on behalf of current and future Bay of Plenty communities. Whileour grants programme remains an important way we support our communities, notevery issue can be addressed through grants alone.

Impact investing allows us to use a greater proportion ofour investment portfolio to help address social and environmental challengeswhile continuing to generate financial returns.

Our 2030 Commitment

Under BayTrust's 2030 Strategy, we are working towardshaving 15% of our investment portfolio allocated to impact investments by 2030.

As at 31 March 2026, BayTrust had:

• $30.48 million committed to impact investments;
• $22.93 million invested; and
• 14 active impact investments across the portfolio.

Our 15% target is an ambition rather than a requirement toinvest regardless of quality. All investments must continue to meet BayTrust'sexpectations around financial return, risk and measurable impact.

What We Look For

Impact investment opportunities are assessed across boththeir investment characteristics, risk involved and the impact they can create.

Measurable impact
The outcomes need to be identifiable and capable of being measured, monitoredand reported over time.

Financial sustainability
Investments must demonstrate an appropriate financial model and an ability toprovide a return that reflects the underlying risk.

Additionality
We are particularly interested in investments where our capital can help enablean initiative, unlock other investment or address an issue that traditionalgranting or mainstream investment may not adequately address.

Bay of Plenty impact
Where possible, we seek investments that directly benefit Bay of Plentycommunities or contribute to outcomes that are important to our region.

Where We Seek Impact

Our impact investment portfolio is increasingly aligned withthe priorities and commitments of BayTrust's 2030 Strategy.

This includes investment opportunities that contribute to:

Housing
‍Increasing access to secure, appropriate and affordablehousing and addressing housing need across the Bay of Plenty.

Community Wellbeing
‍Strengthening communities, improving wellbeing and creatingsustainable social outcomes.

Kaitiakitanga
‍Supporting environmental restoration, climate resilience,emissions reduction and the long-term wellbeing of te taiao.

Tū Māori Mai
‍Supporting Māori-led development, strengthening Māorieconomic and community outcomes and contributing to long-term intergenerationalimpact. 

Our Approach to Impact Investment

Impact investment forms part of BayTrust's wider diversifiedinvestment portfolio and is managed within our investment policies andsettings.

Investment opportunities are considered on their individualmerits and are subject to appropriate due diligence, risk assessment andapproval.

BayTrust can invest through a range of structures, includingfunds, direct investments and loans.

Examples of Our Investments

Some examples of organisations and funds BayTrust hasinvested in include:

Tauranga Community Housing Trust
A registered Community Housing Provider delivering housing and relatedservices, with a particular focus on people with disabilities, older people andwhānau requiring housing support.

YouOwn
A shared ownership model designed to help people who can afford home loanrepayments but do not have the deposit required to purchase a homeindependently.

Bay of Plenty Housing Equity Fund
Established with BayTrust and other Bay of Plenty investors to increaseinvestment into housing solutions across the region, particularly whereconventional government or private-sector approaches are not meeting communityneed.

Supporting Smaller Impact Investment Opportunities

BayTrust also has provision to consider smaller impactinvestments and social enterprise opportunities that can deliver positivesocial or environmental outcomes.

These opportunities may require a more flexible investmentapproach and, where appropriate, may be supported alongside other forms ofassistance.

Talk to Us

We welcome conversations about potential impact investmentopportunities that align with BayTrust's purpose, investment requirements andimpact priorities.

For more information, contact:

BayTrust Investment Team
info@baytrust.org.nz
(07) 578 6546

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