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Savings rely on health of worldwide markets

Thursday October 22, 2015 Written by Published in Health

The retirement savings of Cook Islanders worth more than $100 million continues to rely on the health of international markets.

 

Russell Investment representatives Noah Schiltknecht and Maria Flaherty presented a brief overview of the economic outlook for the Cook Islands National Superannuation Fund which holds more than $100 million worth of local employers and workers savings contributions which is invested overseas.

The team took questions from members of the Chamber of Commerce at the presentation at the Islander Hotel yesterday morning.

Schiltknecht explained that although economic growth continues in the United States, Europe and Japan it is lower than previously thought.

The rapidly growing economies of China and India are expected to slow but not collapse, he said. This is good considering the significant amount of trade China does with the South Pacific.

Recessions in both Russia and Brazil are impacting the global economy and although the Japanese economic outlook is improving the earnings and economy are mixed.

However questions asked by members of the Chamber of Commerce about whether investing locally could be an option in the future was met with hesitation.

Cook Islands Superannuation Fund chief executive Damien Beddoes explained that investing overseas was a safer and more viable option.

He said in terms of regional performance the Cook Islands fund comes third, after Papua New Guinea and the Solomon Islands.

Monthly reports on the performance of the Cook Islands Superannuation Fund are available on their website.