The Government Institutions Pension Fund (GIPF) has recorded a total asset value of N$91 billion, recording an annual return of 17.83% against the benchmark of 19.15%.
This was revealed by Mihe Gaomab, chairman of the fund’s Board of Trustees at a recent stakeholders’ consultative meeting.
He emphasized that the under-performance was expected due to market uncertainty being experienced in the Euro region over the last few months.
“Notwithstanding market volatility, we take pride in the fact that the fund’s assets remain above liabilities, even after adjustments are made for actuarial reserves”, he stated.
According to Gaomab, they have maintained that the increase of the fund’s assets should be viewed alongside its growing liabilities.
In that regard, the GIPF has adopted an Asset Liability Model in order to soften its growing responsibilities, while expecting any possibility of market failure.
Gaomab also touched on the provision of housing and shelter, describing it as the most topical matter in a modern Namibia
They thus launched a platform following amendments to the enabling regulations in that sense, which is called the GIPF Housing Loan Scheme.
“Without pre-empting the ensuing presentation on this topic, we are glad to announce that of the N$400 million committed to the scheme, N$357 million had gone into home loans in just over 13 months”, Gaomab said.
The GIPF’s corporate profile states that pension benefits are sourced both by the employee and the employer.
The member contributes an amount equal to 7% of his or her monthly pensionable salary to the fund, while the employer contributes 16%. The benefits are used to provide the benefits promised in terms of the rules of the fund.
“The principal long-term goal of the GIPF is to meet its benefit obligations as set out in the rules of the fund, having due regard to the terms and nature of members’ obligations and associated investment risks”, the Chief Executive Officer of the Fund, David Nuyoma said.
He added that they’re making a contribution to the Namibian economy and the development needs of the community through providing development capital to the non-listed sector in high-potential or priority growth areas.
“The Developmental Investment Policy (DIP) directs capital to commercially-viable projects with a strong socio-economic impact within Namibia”, he noted.
Gaomab said the fund had approved the DIP to guide investments within national economic imperatives as captured by Vision 2030, the Industrial Policy and NDP4.
“Our DIP is anchored on four main pillars, namely economic and social infrastructure, a sustainable future and job-creation initiatives”, he added.
Gaomab also revealed that the fund had made economic inroads through its Unlisted Investment Policy (UIP), which saw an injection of N$1.6 billion into sectors of high growth. “Our assessment of the impact that this investment has on the local economy shows a growth level of N$2.4 billion”, he noted.