How we Invest
The Fund produces a Statement of Investment Policies and Objectives (SIPO) setting out the parameters by which the members funds are invested to achieve an acceptable level of return for the risk taken.
The key considerations that form the basis of the SIPO include:
- The CINS Act 2000;
- The Trust Deed; and
- The Members needs to achieve financial security in retirement
Until 2015 the Fund had a single portfolio that all members funds were invested. This portfolio consisted of growth assets (equities) and income assets (cash & fixed interest), that were structured in a conservative level of risk ratio, meaning there were more income assets (70%) than growth assets (30%) in the portfolio.
In July 2015 the Fund investment strategy expanded to create two new funds (Balanced & Growth Funds), whilst retaining the existing portfolio, enabling the members to chose a higher level of risk and potential return.
In 2019 the SIPO was further updated to provide for the future changes in Asset Classes, and in particular the inclusion of the framework to enable direct investments in the Cook Islands.
The portfolios members can choose from are:
- CINSF Conservative Fund
- CINSF Balanced Fund (Default option for new Members, effective from 1 Jan 2022)
- CINSF Growth Fund
The Funds consist of investment products from Russell Investments, being:
Russell Investment NZ Shares Fund
The fund is a New Zealand registered Unit Trust having its principal investments in New Zealand equity securities with a focus on equity securities that are listed or expected to be listed in a registered exchange in New Zealand.
Russell Investments NZ Fixed Interest Fund
The fund is a New Zealand registered Unit Trust having its principal investments in Government, Non-Government, and Corporate Fixed Interest Securities, denominated in New Zealand Dollars.
Russell Investments Hedged Global Shares Fund
The Fund is an Australian registered Managed Investment Scheme. Its principal investments are international shares listed on stock exchanges in developed and emerging international markets.
Russell Investments Global Opportunities Fund – Class A
The Fund is an Australian registered Managed Investment Scheme. Its principal investments are global shares in major developed markets of the world.
Russell Investments Global Bond Fund – Class B
The fund is an Australian registered Managed Investment Scheme. Its principal investments are debt securities issued by supranational, international governments, quasi-governments, agencies and corporates as well as structured credit securities including mortgage and asset backed securities.