User:Nehaleimpact/Govenment Institution Pension Fund-Namibia

GIPF’s assets surpassed the N$50 billion mark The Government institution Pension’s fund’s (GIPF) market value has grown in size more than four times over the past 10 years and has reached the N$50 billion mark at the end of 31 March this year. This makes up 61per cent of the Namibian GDP, 75 per cent of the total market value of the investments of the financial sector services and 86 per cent of the market value of the total investments of the pension funds industry in Namibia. The market value of the Fund has grown from N$46 billion in 2011 to N$50 billion but the Investment Advisor from RisCura, Jarred Glansbeek, warned that the investments should be handled carefully so as to ensure to meet the GIPF’s commitments annually. “We have to make sure to diversify the investments to ensure that if some of it does not perform well the others can make up for it. The fund has now a N$5 million obligation per year towards its retired members but over 35 years with a 6 per cent inflation rate cash flows required will be N$12 billion. GIPF General Manager Finance and Investments, Conville Britz, also painted a more positive picture on the Fund’s unlisted investments compared to the last few years where more than N$600 million disappeared from the GIPF’s Development Capital Portfolio (DCP). This, he ascribed to a much more transparent and effective unlisted investment policy, which by the end of March this year invested an amount of N$276 million in Africa through a credit asset manager South Africa Fund. This is the first Pan African private equity fund of –funds on the continent and is the leading fund of its kind in Africa with US$250 million in assets under management following its Fourth Close. “Total unlisted investments made in Namibia are just shy of N$300 million but in the next few days we will make another investment totaling N$21bmillion to the Preferred Investment Properties Trust with Preferred Management Services as the Fund Manager. The GIPF is invested a maximum of 10 per cent of its total assets in unlisted investments in Namibia to stem the capital outflow from the country and to ensure that Namibian savings are invested in the Namibian economy” said Britz. At the same occasion Acting GIPF Chief Executive Officer, Maria Dax, said the Fund’s Trustees have taken on the responsibility to ensure that members are seeing the value of a well thought investment strategy across the entire Fund. ”We are extremely excited about this performance because it has the most direct effect on the individual members and pensioners of the GIPF. Our members should therefore not be concerned about their retirement benefits because the fund is doing well and their benefits are guaranteed,” said Dax.