Following the announcement by Auckland Future Fund Trust Limited of the appointment of Vontobel Asset Management AG as its global investment manager, AFF Board Chair Chris Swasbrook gave an overview of the setup phase of the fund and its performance to date.
What’s been happening with global markets since the fund was capitalised in December 2024?
Chris Swasbrook: Global financial markets have been very volatile this year. While the returns to the Auckland Future Fund were 4.06 per cent between 9 December 2025 (when the fund was capitalised) and 30 June 2025, the Standard and Poor’s 500 index appreciated around 2.5 per cent during that time. Over the same time, the Auckland International Airport Limited share price went down 7.13 per cent, from $8.34 to $7.745 a share.
What value of income has the Auckland Future Fund received from interest?
Chris Swasbrook: The AFF interest income from 9 December 2024 to 31 August 2025 was $36.96 million. In other words, that’s an average of $138,947 per day over a period of 266 days.
Can you tell me about the sale of the AIAL shares?
Chris Swasbrook: The AFF Board was focused on achieving the maximum sale price for the council’s remaining shares in AIAL. In December 2024, the AFF Board completed the sale of the council’s 163,231,446 shares in Auckland International Airport Limited (AIAL) for $8.08 per share. The closing AIAL share price on August 27, 2025, was $7.60. If the share sale had taken place yesterday, the sale proceeds would have been $1.241 billion, which’s $78.4 million, or 5.94 per cent lower than what we achieved.
Is there much difference between the share dividend and AFF’s distribution so far?
Chris Swasbrook: If the council had retained the AIAL shares, it would have received a $10.2 million dividend. The Auckland Future Fund distribution the council received, for the period 9 December 2024 to 30 June 2025, was $38.4 million – a positive variance of $28.2 million.
What about the capital and overall position for Auckland Future Fund?
Chris Swasbrook: The Auckland Future Fund (as of 29 August 2025) was capitalised at $1.317 billion, compared to the $1.232 billion if we’d retained the council’s holding of AIAL shares. That’s a positive variance of $85.0 million. So overall, between the additional capital and additional distribution, the Auckland Council is currently $113.2 million better off than if it had retained the AIAL shares.
What do you say about the time it took to appoint the global investment manager?
Chris Swasbrook: The AFF Board (alongside independent advisor Māpua Wealth) ran an appropriately robust process. Rather than speak to it, I’ve included a summary of the appointment timeline, which I believe speaks for itself.
How did the $20 million ‘fix and finish’ fund originate from the Auckland Future Fund?
The Long-term Plan 2024-34 agreed that approximately $20 million of the first distribution from AFF to the council would be allocated to ‘fixing and finishing’ important community projects in the legacy Manukau City and Auckland City areas, as the other legacy councils had already sold their interests in the airport before amalgamation. (Editor’s note: more information here)
Global investment manager timeline
December 2024 - February 2025
AIAL share sale and RFP for a global investment manager. This included RFP preparation, identifying participants, and overseas meetings with potential participants at no cost to AFF or ratepayers. Additionally, it involved initiating the RFP process (a 4-week period) and a 12-day question period following the RFP release.
March 2025
The RFP closed on 14 March with 21 applicants participating. The panel reviewed submissions and conducted two evaluation sessions.
April 2025
Non-shortlisted participants were notified. Shortlisted participants received and responded to interview questions from the AFF Board. In-person interviews were held with four shortlisted participants, including post-interview information. The AFF Board requested Māpua Wealth to prepare a reference portfolio for consistent evaluation.
May 2025
Reference portfolio generated, agreed and sent to shortlisted participants. This enabled a comparison of fees and investment management offerings. Responses were received and assessed.
June-July 2025
Top two suppliers agreed by AFF Board. Online meetings were held with the two most preferred suppliers. The AFF Board met, resolved on a preferred supplier and instructed the council to prepare documentation. Due diligence and contract negotiations with the preferred provider commenced. Due diligence included: externally-audited financial accounts; management accounts; confirmations from external legal providers, bank managers and accountants; reference checks; audit considerations and solutions; legal advice – including overseas advice on Swiss law; agreeing reporting requirements and delivery; and draft investment instructions.
August 2025
A supplier recommendation was drafted by the council and approved. Due diligence and contract negotiations concluded. The contract was executed and the appointment of Vontobel Asset Management AG was announced on 24 August 2025.
