By Losirene Lacanivalu, Cook Islands News
Cook Islands National Superannuation Fund logo Photo: Cook Islands National Superannuation Fund
The Cook Islands National Superannuation Fund (CINSF) experienced negative returns in early 2025 due to US tariff announcements causing global market declines, particularly in US stocks, though some losses have since been recovered.
CINSF chief executive Damien Beddoes says, "The CINSF like all investment funds globally have been affected by the continually changing tariff announcements by US President Donald Trump."
Beddoes comments come after Super members noticed a decrease in their total funds.
Beddoes explained, "Without going into the detail of those announcements (tariff), the CINSF did initially start 2025 with positive returns, however those positive returns have subsequently been lost on the back of major market declines, in particular US stocks.
"Currently, with the tariffs being deferred and amended the CINSF valuation has recovered some of those losses but not all.
"The Funds returns to March 2025 are Conservative Fund -0.5% Balanced Fund -1.5% and Growth Fund -2.1%," he added.
Cook Islands National Superannuation Fund CEO Damien Beddoes. Photo: Cook Islands News
Beddoes had also explained that, "Investment holdings mean we hold shares in companies, the number of shares we hold are not lost, we still hold the same number of shares, the value of the shares is what changes.
"So the value goes up and down, from day to day from minute to minute shares go up and down in value.
"What we do as an institutional investor that has a long term investment strategy is we make long term decisions, we don't react to or try to time market announcements we focus on delivering results over years not days.
He added, "So, when market disruptions happen like they are now we continue to purchase shares and to rebalance our portfolio holdings."
"The CINSF is an institutional investor, and our investment strategy is not to react to or try to time the markets, we instead focus on delivering long term results to members, which is shown throughout our 24 years of investing history."
Cook Islands was hit with a 10 per cent basic tariff on all foreign imports by the United States, imposed by Trump earlier this month.
And earlier this month, Cook Islands Chamber of Commerce, warned of potential economic ripple effects, despite the Cook Islands' lack of direct trade with the United States.
It was highlighted that despite limited direct trade, the nation fears US tariff increases could indirectly impact the local economy through global supply chain disruptions and increased costs, particularly in tourism and imports.
Chamber chair Addrienne Hosking-Tinirau said they were concerned that the ripple effects of the US policy could disrupt global supply chains, raise import costs and place additional strain on key sectors like tourism and retail.
The Chamber of Commerce also urged the government to work closely with regional partners, particularly New Zealand and Australia, to monitor the evolving trade landscape and ensure the Cook Islands remains resilient.
"We need proactive strategies to diversify our trade options, reduce reliance on any one source country, and support local production where possible."
The Chamber emphasised the importance of transparency and regular communication between government, the private sector, and development partners to navigate future economic turbulence.
"While the full impact of the U.S. tariffs remains to be seen, the Chamber has called for calm and cooperation."
Meanwhile, Chamber advises businesses to assess exposure to USD-priced imports, airline travel, and shipping cost increases.
And tourism operators to monitor airfare trends, while importers brace for higher freight charges.
"We will work with the Cook Islands Statistics Office, the Ministry of Finance and Economic Management, and regional trade partners to monitor developments.
"While our zero-tariff policy provides some buffer, the interconnected nature of global trade means we are not immune to these shifts.
"We urge the government to explore any available mechanisms (eg reducing fuel duties) to mitigate the foreign exchange impacts on the local economy, particularly as it impacts energy and energy-dependent services.
"We're a small economy, but we're adaptable. By staying informed and planning ahead, we can minimise the impact of global events that are beyond our control," she added.
-This article was first published by Cook Islands News.
