Super fund outreach well received

Monday September 14, 2015 Written by Published in Economy
Cook Islands National Superannuation Fund chief executive offi cer Damien Beddoes talks to the people of Mangaia on their investment options. Cook Islands National Superannuation Fund chief executive offi cer Damien Beddoes talks to the people of Mangaia on their investment options.

The Cook Islands National Superannuation Fund (CINSF) has been running a series of public seminars in the outer islands to educate residents on their new investment options.

 

Chief executive Damien Beddoes says the CINSF office has delivered a number of presentations to members on Aitutaki and most recently on Mangaia.

On July 1 the fund launched three investment options including the CINSF Conservative Fund, CINSF Balance Fund and CINSF Growth Fund.

While the investment options are gaining momentum with members on Rarotonga, CINSF is heading to the outer islands to ensure those living there also benefit from the choices.

The presentations aim to inform members about the features and benefits of the fund, the new options for investment and establishing members’ risk profiles.

Beddoes said that at the members general meeting in October last year CINSF had undertaken to increase awareness of the fund and to provide information to assist members in the Pa Enua to make informed decisions on their investments.

“The response in Aitutaki and Mangaia has been great with strong attendance, and through informative meetings we are now receiving instructions from those members to change their investment options and add voluntary contributions to their investments,” Beddoes said.

The CINSF now plans to hold public presentations on the investment options on Atiu this month.

Beddoes says the Conservative Fund (Default Fund) produces rates of return over time in excess of inflation by investing a small percentage of the assets in growth assets while keeping the probability of a negative return at low levels.

It aims to achieve investment returns after expected added value from the underlying investment fund net of fund manager fees that exceed the New Zealand Consumer Price Index (CPI), measured over rolling three-year periods by 3.8 per cent a year.

The level of risk in this investment is considered low and the risk of negative returns is six years in 100.

The Balance Fund produce returns in excess of inflation appropriate for a long-term (seven years-plus) investment strategy for retirement.

It aims to achieve investment returns after expected added value from the underlying investment fund net of fund manager fees that exceed the New Zealand CPI, measured over rolling three-year periods by 4.7 per cent per annum.

The level of risk in this investment option is considered moderate and the risk of negative returns is 18 years in 100.

The Growth Fund, meanwhile, produces rates of return over time (10 years-plus) well in excess of inflation by investing most of the assets in growth assets (eg equities).

The level of risk in this investment option is considered high and the risk of negative returns is 23 years in 100.            

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