The fund’s net asset value stood at $122.8 million at the end of last year, up from $108.4
million in 2015, indicating a massive growth of $14.4 million.
The annual report to the members for the year ended December 31, 2016 also saw 922 new members joining the fund, bringing the total membership to 9368.
Pensioners increased from 111 at the end of 2015 to 155 as at the end of 2016.
During the year under review, combined contributions from members and their employers were $12 million, which is up by $1 million compared to the collections in 2015.
The report also show increase in benefit payments last year from $1.45 million to $3.89 million.
This included $1.78 million set aside for payments to migrant workers who had previously had their employer contributions forfeited to the fund in accordance with the provisions of the Act.
CINSF chief executive officer Damien Beddoes said last year, the fund faced its biggest hurdle to date with legal action taken regarding the constitutional status of the fund in the Cook Islands.
It resulted in favour of the fund.
“With the fund now able to move forward with its full statutory powers, the challenges continue, and over the past two years I have spoken about and debated many issues on the purpose of the fund and its role in our society,” Beddoes said in his statement.
“The journey has left me more resolved in the need for compulsory savings for the future security in retirement for Cook Islanders.
“The fund does have its unique features and while these may not always suit all demographics of our members, the overarching objectives of the fund do.”
In 2014 and 2015, extensive public consultation took place to review the CINSF and consider the needs of the members.
Beddoes said the results were collated into 12 recommendations and were submitted to Cabinet to obtain government consent to work through and implement the recommendations.
He said of the 12 recommendations, just four remain to be completed, and these require a legislative amendment before they can be implemented.
The final recommendations, Beddoes added, relate to portability of funds for members and improvements to the board composition.
“Our biggest priority remains the engagement of members. Ensuring members select the right investment options for themselves will make a significant difference in their ability to achieve desired income levels in retirement,” he said.
“We must continue to be engaged and remain resourceful in our ability to connect with employers and the public to impress the importance of investment selection for members.”
With the fund exceeding $120 million and large exposures to the markets, Beddoes said more regular reviews of their asset allocation will be undertaken, and options to reduce the volatility and stabilise returns will need to be considered going forward this year and 2018.
He said legislative amendments remain a priority for the fund to meet the needs of members and provide portability of their funds to other jurisdictions, provide for changes to the board representation, and the ability to introduce additional professional expertise to the board.
