The Investment and Asset Management program supports the creation of sustainable ventures that provide meaningful opportunities for Aboriginal and Torres Strait Islander people to accumulate wealth, develop their capacity to participate in Australia’s economy, create jobs, increase training and skills development, and supply goods and services.
We do this by engaging with Aboriginal and Torres Strait Islander organisations to understand what their needs are and offering solutions including well-managed, competitively priced long-term investment funds and acquiring in partnership, direct investment businesses with the management expertise and engagement approaches to generate financial and social impact.
To deliver these outcomes, the program co-invests in a wide range of sectors and geographic locations with the principal investments held in 2017–18 shown on page 50.
Through products such as the Indigenous Real Estate Investment Trust (I-REIT) and the Indigenous Prosperity Funds (IPF), IBA is making investments more accessible for Indigenous partners. In 2017-18, across IBA’s Investments and Asset Management division (and including new investment in the IPF), we had investment of $54 million from 24 investors, which is the highest ever level of new investment into IBA ventures in any one year since its establishment.
At 30 June 2018, Aboriginal and Torres Strait Islander partners and beneficiaries held equity worth $184.1 million
in aggregate in IBA’s investment portfolio. Their proportion of total equity increased to 38.6% at 30 June 2018 from 30.2% at 30 June 2017.
The graph below illustrates the long-term trend towards increased Indigenous equity in the investment portfolio since 30 June 2013.
In addition to the strong financial return of 7.4% generated by IBA for its partners and investors in 2017–18, IBA utilised our investment portfolio to deliver meaningful social outcomes including:
- Employment – a total of 713 jobs were supported by IBA’s direct investments of which 30% were jobs held by Aboriginal and Torres Strait Islander people.
- Training and skills development – 578 instances of training were delivered to Indigenous employees including formal skills development, on-the-job training, traineeships and mentoring.
- Supply chain opportunities – IBA’s investments procured more than $1.86 million of goods and services from Aboriginal and Torres Strait Islander suppliers.
- Commercial capability development – IBA used income generated by its investment portfolio to support initiatives to build capability in strategy development, governance and investment decision making including facilitating independent advice to investors and delivering Into-Investing Workshops.
FIGURE 9: INDIGENOUS HOME OWNERSHIP INDIGENOUS EQUITY IN THE INVESTMENT PORTFOLIO
FIGURE 10: INDIGENOUS HOME OWNERSHIP INVESTMENT PORTFOLIO
FIGURE 11: INDIGENOUS HOME OWNERSHIP INVESTMENT IMPACT
JULALIKARI ACHIEVES
50% SHARE IN FOOD BARN
‘After many years of Julalikari Council Aboriginal Corporation (Julalikari) and IBA working in collaboration, it gives us great pride and satisfaction that Julalikari has achieved a 50% share in the Tennant Creek food barn. This is an initiative of our elders past and present, which was to see good healthy quality food on our shelves. This is also an opportunity for Julalikari in utilising profits from its enterprises to create our own community programs and to also support other new enterprises within the Barkly region.’ – Richard James, Traditional Owner and Julalikari Board representative.
The Tennant Creek IGA has been a mainstay of the remote Northern Territory town and surrounding region for almost 30 years. As the only supermarket for hundreds of kilometres, it provides essential supplies, fresh produce, and valuable employment to the local population of 3,300 people.
In 2008, IBA and the Julalikari Council Aboriginal Corporation went into partnership and acquired the Tennant Creek Food Barn (now Tennant Creek IGA). This allowed Julalikari to diversify its business interests and secure a source of income to support their local development goals for the area’s Warumungu population. With an internal rate of return of 24% per annum since commencement, it has been an excellent investment for the partnership.
Today Julalikari and IBA’s partnership is stronger than ever, with Julalikari becoming a 50% shareholder in the business this year, and on track to become the sole owner within the next five years. Through this partnership, the town of Tennant Creek has benefited from continuous investment in the store which provides a high standard of supermarket with prices comparable to Alice Springs. There is also the opportunity of jobs for the local Aboriginal and Torres Strait Islander community with 22 Aboriginal and Torres Strait Islander staff comprising over 30% of staff in the store.
This local economic development goes further than income for Julalikari. The store is using its procurement to grow other local Aboriginal and Torres Strait Islander businesses such as Manungurra, one of IBA’s coinvestment partners. Manungurra, which has established a market garden with local labour, is providing supplies of fresh fruit and vegetables to the store. Other Aboriginal and Torres Strait Islander suppliers include Dexter Barnes, a local electrical business.
‘…the partnership we’ve developed with the Tennant Creek IGA has allowed us to build our market garden business and provide training and jobs for the area. As the supply agreement gets bigger and we develop capacity we will be able to expand our garden and product range and create more local opportunities.” - Graeme Smith, Manungurra Development Corporation CEO.
SELF-DETERMINATION
THROUGH
INVESTMENTS
The Quandamooka people have lived on Minjerribah (now known as North Stradbroke Island) for at least 25,000 years. There are three clans that comprise the people of the Quandamooka. They are the Nughi of Moorgumpin (now known as Moreton Island) and the Nunukul and Gorenpul of Minjerribah.
On 4 July 2011, the Federal Court made two native title consent determinations recognising the Quandamooka People’s native title rights and interests over land and waters on, and surrounding North Stradbroke Island, and some islands in Moreton Bay. As part of the settlement, the trusteeship and responsibility for the holiday parks and beachfront camping areas were transferred to Quandamooka Yoolooburrabee Aboriginal Corporation (QYAC) which represents the Quandamooka people.
After this determination, QYAC and IBA formed a Partnership; Minjerribah Camping, which in turn entered into a 30-year agreement with QYAC to lease the holiday park areas and manage the beachfront camping areas and 4WD permits. IBA contributed equity to enable the upgrade and redevelopment of the business.
Over the five years of the partnership, QYAC were able to utilise lease fees and profits generated through the partnership and grew its equity in the business from 11% to 40%. In October 2017, QYAC obtained all of IBA’s equity in the partnership and now owns 100% of
Minjerribah Camping.
This investment is a highlight for IBA’s Equity and Investments team as it demonstrates how an active partnership between IBA and Traditional Owner Organisations can have a lasting impact on community. This can be done through building viable business ventures that result in 100% community ownership over the medium to long term. In addition to this, the business provides ongoing employment and training opportunities for Quandamooka people on their island home.
‘This signifies an important step for the Quandamooka in securing a sustainable economic future on their own land.’ – Rajiv Viswanathan, CEO IBA