Glossary
Asset Class
An asset class is a similar group of securities or assets that share common characteristics
Benchmark
A standard against which the performance of a security, index, or investment fund can be measured.
Board
The Board of the National Superannuation Fund.
Bond
A debt investment with which an investor loans money to an entity (company or government) that borrows the funds for a defined period of time at a specific interest rate.
Cash
Generally taken to mean a very short-term investment earning interest from a highly rated bank.
Commodities
Tangible products, such as metals, crude oil or grain.
Compulsory Account
Combination of a Member’s Employer and Employee Contribution Accounts
Contract Worker
A non-resident of the Cook Islands working on an employment contract of not more than 3 years.
Derivative
An Arrangement or Product whose value derives from and is dependant on the value of an underlying asset such as a commodity, currency, or security. Derivatives can be used to manage risk, reduce cost, and enhance returns.
Diversification
Is a process of allocating capital in a way that reduces the exposure to any one particular asset or risk. Diversification may help mitigate risk or volatility by investing in a variety of assets.
Early Retirement Age
Where a Member aged between 55 and 60 ceases employment as a result of ill-health or redundancy.
Equities
More commonly known as shares or stocks. Securities that signify ownership in a Corporation and represents a claim on part of the corporation’s assets and earnings.
Fixed Interest
A term used to describe investments that generate income in the form of agreed interest payments over an agreed period of time.
Growth Assets
In the portfolio, growth assets in comprise equities.
Group Life Insurance Policy
Means the current insurance policy arranged by the Trustee.
Ill Health
Where a Member has been absent from employment through illness for 6 consecutive months and is unlikely to ever engage in employment for reward in any occupation.
Index
A measure of performance of a collection of assets typically across a sector, country, region or style (e.g. Dow Jones, MSCI)
Investment Direction
A Member’s choice of investment in any one or any combination of the three CINSF Investment Funds.
Investment Ranges
The minimum and maximum allocations a Trust can give to a given asset class.
Legal Personal Representative
Means a person appointed to administer a deceased person’s estate or to manage the financial affairs of a person when that person is unable to do so.
Normal Retirement Age
Means 60 years of age.
Old Age Pension
Any pension payable under the Welfare Act 1989.
Out Performance
Excess performance above the benchmark or above the targeted return.
Pension Account
The account created by the transfer of all funds in a Compulsory Account on the date of a Member’s nominated retirement age.
Pension Rates
The rate applied by the Trustee on the recommendation of an Actuary for the calculation of a Member’s retirement, early retirement or a spousal pension.
Portfolio Construction
The allocation of risk in a portfolio. Portfolio construction embraces the broad allocation of risk capital to various value-add strategies as well as the specific allocations of risk capital to investments.
Return
The return on an investment after manager fees and taxes.
Risk
Is a term used to imply the uncertainty of a return, and the potential for financial loss.
Shares
A term typically used to describe an ownership interest in a company. Shares are also known as equities.
SIPO
Statement of Investment Policies and Objectives sets out the portfolio construction, benchmarks, and investment objectives.
Total and Permanent Disablement
Where a Member has been absent from employment through injury or illness for 6 consecutive months having become incapacitated to such an extent as to render the Member unlikely to ever engage in employment for reward in any occupation or work for which the Member is reasonably qualified by education training or experience.
