News Item

​Reports released from NZIPR

News 30 Jun 2017

Two new reports have been released from the New Zealand Institute for Pacific Research (NZIPR) - Improving the Performance of Sovereign Wealth Funds and Reference Portfolios for Sovereign Funds.

NZIPR is a national institute to promote and support excellence in Pacific research.

A collaboration between the University of Auckland, Otago University and the Auckland University of Technology the NZIPR includes NZ’s leading research universities, and includes NZ’s largest networks of Pacific researchers.

Together the university partners bring expansive and unique Pacific research capacity and relationships, as well as educating three quarters of NZ’s Pacific students and employing 90 percent of NZ’s academics of Pacific Island descent.

One of the key projects for the NZIPR is examining the roles of Sovereign Funds (SFs) in the Pacific Islands.

This reflects the fact that SFs are often the largest single asset owner and investor in the Pacific Islands, and the income stream from these funds can also be a large part of fiscal revenues.

They can be an important part of Pacific Island wealth, and may help promote economic development and buffer Pacific Island economies from shocks such as natural disasters.

Particularly in the smaller Island nations, they are also seen as mechanisms to enable greater levels of self-determination, reducing the reliance on foreign aid and remittances.

This report summarises the research undertaken on SFs in the Pacific and draws out key findings, lessons and opportunities for funds to move closer to best practice.

NZIPR’s coverage of the Pacific included the very small island six nations in Polynesia and Micronesia, as well as the larger and more populous Melanesian Islands such as Papua New Guinea and the Solomon Islands.

It also included a broad set of Sovereign owned funds – including Sovereign Trust Funds, Pension Funds, Stabilisation Funds, Development Funds, and other special purpose Funds.

The NZIPR believes there are insights and lessons from the Pacific experience that will be of interest to other small economies considering the role of SFs, and the wider SF research community.

Despite this, research attention on Pacific Island SFs has been limited, and published cross-country studies tend to be focussed upon Sovereign Trust Funds rather than the broader set of SFs in the Pacific.

The research programme consisted of three phases:

  • An overview of Sovereign Funds in the Pacific, their purposes, and findings from the (relatively sparse) literature on the effectiveness in meeting their purpose. This phase one report was released in November, 2016.
  • The development of tools, including an assessment framework and “reference portfolios” to be used in detailed assessments of several PI Funds.
  • Application of the tools to assess the Tuvalu Trust Fund, Niue International Trust Fund and Tokelau International Trust Fund.

To access the phase two report Reference Portfolios for Sovereign Funds, click HERE.

To access the phase three report Improving the Performance of Sovereign Wealth Funds. click HERE.

Visit NZIPR for more information.