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Superfund partners with Smartshares to ‘accelerate global investment portfolio implementation’

Tuesday 27 September 2022 | Written by Supplied | Published in Business, National


Superfund partners with Smartshares to ‘accelerate global investment portfolio implementation’
Hugh Stevens, CEO SmartShares, and David Brown, chief investment officer of CINSF. Picture: SUPPLIED

Cook Islands National Superannuation Fund (CINSF) will implement its global investment portfolio of NZ$200 million using funds offered through NZX subsidiary Smartshares.

CINSF chief investment officer David Brown described the move as a “cost efficient New Zealand dollar vehicle to back our pension obligations in the currency here in the Cook Islands”.

“We are delighted to initiate this partnership with Smartshares, a subsidiary of the NZX group of companies and believe their flexibility and willingness to think out of the box to accommodate our specific requirements has been very helpful,” Brown said in a statement.

During September, CINSF will transfer its assets to a Reference Portfolio composed of international bonds and equities using Smartshares’ SuperLife Total World (NZD Hedged) and (Unhedged) Funds – both of which access the Vanguard Total World Stock ETF, tracking the FTSE Global All-cap Index for its equity exposure and Smartshares’ SuperLife Global Aggregate Bond Fund. The SuperLife Global Aggregate Bond Fund accesses the iShares Core Global Agg Bond UCITS ETF tracking the Bloomberg Global Agg Index 100 per cent hedged to the NZD.

This Reference Portfolio forms the basis for CINSF market exposure against which all future active management endeavours will be measured for their capacity to add value, the statement said.

Hugh Stevens, Smartshares chief executive welcomed the opportunity to support the Cook Islands National Super Fund to “improve efficiency”.

“The work we are doing together demonstrates Smartshares’ ability to provide regional investors with tax effective access to global investment opportunities.

“It also demonstrates our ongoing support for financial wellbeing solutions for residents of the Cook Islands and other Pacific nations.”

The super fund is the only one of its kind in the Cook Islands and works independently of the Cook Islands Government to save for retirement of all those working in the country. The fund invests 5 per cent member plus 5 per cent employer contributions to ultimately pay a pension for life and the life of surviving spouses over the retirement age of 60.