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Investing in Our Future-Bay of Plenty Business News

Brendon Barnes, Quayside’s Chief Investment Officer since 2015, shares with us his thoughts on key aspects of the under consideration but bold asset management framework. With extensive domestic and international experience, including working for Abu Dhabi’s sovereign wealth fund, Brendon leads a team of keyside investment professionals.
Clear and targeted generational investment asset management is the basis of Quayside Holdings’ commercial interests. With a majority share of Tauranga Harbor and $ 3.1 billion in assets, Keyside has taken a funded approach to our non-port assets to ensure that we maintain commercial discipline and community orientation. I’m using.
What makes us stand out? We know that investments are deeper than profits, and as a shareholder we are providing sustainable dividends to the Bay of Plenty Regional Council (BOPRC) to support further regional development and services.

On On March 12, 2020, the Dow Jones Industrial Average plummeted by 2,352 points (10%) to over 1,985 points (9.36%) the next day, triggered by concerns about the coronavirus pandemic. In the uncertainty of the fastest bear market in history Quay I didn’t do anything because the necessary steps had been taken so far in advance.

“We were already planning this event. We sold a number of financial and consumer discretionary shares from our portfolio in early February and expected them to be hit hard in the short to medium term. We used the crash as a buying opportunity, picked up some undervalued stocks, and then went well, “Brendon said. “Investors who weren’t in a hurry were well rewarded.”

Fast forward so far, Quayside has set a record year. In the year to June 30, 2021, Quayside’s profit was $ 154.1 million. For the first time in its history, profits from the non-port portfolio were greater than profits from Tauranga Harbor, returning more than 28% annually.

Quayside has a wide range of investment obligations and can consider combinations of assets and opportunities that are not available to most institutional investors.

From direct real estate assets to horticulture, international private equity to pre-profit companies. All of these assets are selected to perform differently in different economic conditions, allowing Quayside to survive the uncertainties prevailing in the market through uncorrelated returns. This approach to portfolio building and wealth management is based on higher investment allocations to illiquid sectors and requires a true commitment to long-term strategies.

The Quayside portfolio is still dominated by a 54.14% stake in Tauranga Harbor, but in 1999 the Quayside Board made a strategic decision to begin diversifying its investment portfolio. Today, the non-port investment portfolio is valued at around $ 450 million (about 15% of total assets), which is projected to grow rapidly over the next few years.

“Ensuring the right combination of assets is sometimes a true balancing act. You always have to look to the future. Things change, opportunities arise, and things don’t go as planned. We benefit greatly from an experienced and hard-working team focused on strategy. “

The Quayside model has little impact, but everyone in the region is benefiting. This year’s dividend to BOPRC has reduced prices for all households in the bay by $ 289 per property.

“Last year we got involved with others who wanted to learn more and recreate the keyside model. We really don’t know how lucky we are here in the bay. Investing in yields. We need a healthy part of our growth assets to maintain dividends to the council and our community, rather than just focusing on it. “

Quayside’s balance sheet size, especially its non-port portfolio, allows Quayside to carry out transactions that are of great benefit to the region on a regular basis, including the issuance of $ 200 million of perpetual preferred stock in NZDX in 2008. The proceeds were spent on regional infrastructure projects. Civil engineering work will begin this spring at the long-awaited Langiul Business Park, which will bring great benefits to the wider community.

Brendon said: This responsibility is certainly not something we downplay. We take pride in providing positive impact results for the communities in which we live. “

read more: Quay, 30 Years of Investment-Bay’s Hidden Treasure



Investing in Our Future-Bay of Plenty Business News

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