Pacific Funds Research Program Finds Governance is Critical

Staff from Fi360 Pacific were involved in a research program run by the New Zealand Institute of Pacific Research to develop an understanding of Sovereign funds in the Pacific and opportunities to lift performances.  Pacific Island funds are often the largest single investor in their host nations, and they are a key sources of wealth and potential mechanism to help Pacific Islands achieve greater self-reliance.  The 3 phases of this research were:
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1. A ‘desk top’ overview of Sovereign Funds in the Pacific, including stabilisation, development and Provident funds.
2. The development an assessment framework that drew upon fi360 and IFSWF standards, as well as low cost “reference portfolios” that could be used as benchmarks for the different types of Funds in the Pacific.
3. Application of the tools to assess several Trust funds.

A key finding of this research was that for many funds there needs to be more clarity on their economic purpose so that clear investment strategies can be developed to best meet their purpose. Opportunities to improve investment governance were also identified, including through training of Trustees and regular scheduled reviews of policies and providers.   Papers for this research are available here:
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• The Role of Sovereign Funds in the Pacific
• Assessment Framework for Sovereign Funds in the Pacific
• Improving the Performance of Sovereign Funds in the Pacific
• Reference Portfolios for Sovereign Funds in Pacific Island Nations​