Investment in local unlisted companies by the Government Institutions Pension Fund has exceeded N$4 billion, making it the single largest investor in this asset space. In addition, the fund's total assets exceeds N$106 billion, a target which the fund's Board of Trustees has been actively chasing through its careful asset acquisitions.
Speaking at the fund's annual Stakeholder Gala Dinner on Thursday evening, 26 October, the Chief Executive and Principal Officer, Mr David Nuyoma said "We believe that our contribution has greatly impacted and developed the local unlisted market especially in the areas of property, private equity, debt and infrastructure."
Naming the fund's stake in the Capricorn Investment Holdings Group at over N$2 billion, as one of its anchor local investments, Mr Nuyoma said "after careful and due consideration the fund purchased a significant stake in this Namibian-owned bank. We are of the considered opinion that the Capricorn Group is a good asset with good potential for income as well as capital growth over time."
Elucidating their in-house investment strategy, he said that since the introduction of their own Treasury Unit in 2015, assets worth N$11.2 billion are now managed by the fund itself pointing out that it is more than 10% of their overall investments. "This initiative has seen us optimise our excess offshore funds and also realising some savings on management fees," said Mr Nuyoma.
"As an institution that attracts huge public interest, we recognise that we play an important role in shaping the discourse of our national economic agenda especially as it relates to the investment potential of Namibia. It goes without saying then, that in terms of our global geographical split of asset allocation by region; the majority of our investments are in Namibia with over 49% invested locally. This is followed by more than 25% in the international market, over 18% in South Africa with the remaining 6.9% in the rest of Africa," said Mr Nuyoma detailing the geographic asset split.
"When looking at the asset class breakdown, we have diversified our investments with equities taking up the larger portion with over 55% in this portfolio; fixed assets make up slightly over 20% with 16.8% in property. The rest of our allocations are in private equity, loans and cash portfolios," he said.
For the year ended 31 March 2017, the Government Institutions Pension Fund received an unqualified audit.
Welcoming a new trustee to the Board of Trustees, the Chairman, Mr Goms Menettè, said "I would like to inform you that we have a new trustee on board replacing Mr Mihe Gaomab II. I am therefore delighted to inform you that our new trustee Mr Fanuel Kisting joined the board effective 20 October 2017.
Overview of benefits and beneficiaries:
In the financial year to the end of March 2017 the GIPF has paid out a total of N$2.9 billion in benefits, of which N$1.3 billion comprised pensions. The fund also takes care of close to 19,000 orphans and almost 9000 widows and widowers.
During the same period, the fund paid over N$121 million in death benefits and over N$9.1 million in funeral benefits.
The GIPF has a membership base of over 141,000 individuals of whom about 37,000 are annuitants.
So far, it has managed to track some 9000 of the 12,000 beneficiaries whose whereabouts were unknown, leaving the fund with only 3000 vagrant annuitants.
Pictured at the GIPF Stakeholder Engagement Gala Dinner, from the left, Chief Executive and Principal Officer, Mr David Nuyoma, keynote speaker, Adv Bience Gawanas and Chairman of the Board of Trustees, Mr Goms Menettè.