The Cook Islands National Superannuation Fund (CINSF) has reported negative returns in early 2025, primarily triggered by recent tariff announcements from the United States that have contributed to declines in global markets, particularly impacting US stocks. However, some of these losses have been gradually recovered.
CINSF Chief Executive Damien Beddoes commented on the situation, indicating that the fund, like many global investment entities, has been affected by the shifting tariff landscape introduced by former U.S. President Donald Trump. This has led to noticeable decreases in total funds for Super members.
Initially, CINSF began the year 2025 with promising returns, but substantial market declines, especially in US stocks, eroded these gains. Beddoes noted that while certain tariff measures have now been deferred or amended, the fund has managed to recover some of its lost valuation, although not to the previous levels.
As of March 2025, the returns reported for different investment strategies were as follows: -0.5% for the Conservative Fund, -1.5% for the Balanced Fund, and -2.1% for the Growth Fund. Beddoes reassured that the number of shares held by the fund has not changed; the fluctuations are solely due to the value of those shares.
The Cook Islands recently faced a 10% basic tariff imposed on all foreign imports by the United States. The local Chamber of Commerce expressed concerns over potential economic ripple effects, despite the islands having minimal direct trade with the U.S. of around $40 million in exports compared to imports from various nations.
Chamber Chair Addrienne Hosking-Tinirau highlights fears that increased tariffs could indirectly disrupt the local economy through supply chain challenges and rising costs, particularly impacting key sectors like tourism and retail. The Chamber is urging the government to collaborate closely with regional partners such as New Zealand and Australia to adapt to the evolving trade environment and ensure resilience.
Among the proactive measures proposed are diversifying trade options and investing in local production capabilities. The Chamber emphasizes that although they face challenges, the adaptable nature of the Cook Islands could help mitigate the impacts of global economic changes.
Despite these concerns, there is cautious optimism regarding the Cook Islands’ capacity to navigate such obstacles. By remaining informed, maintaining open communication with international partners, and focusing on local production, the nation can work towards minimizing disruptions from global economic events.
This situation further emphasizes the importance of strategic planning in order to sustain economic resilience and stability within the Cook Islands.
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