Wednesday 12 May 2021
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GIPF crafts fertile ground for asset managers

By Staff Reporter

GIPF’s chief executive officer David Nuyoma says GIPF will continue boosting the local financial services ecosystem by creating a platform for investment management firms to succeed.
Nuyoma said the private sector has a role to play in funding socio-economic development for the long-term sustainability of business in society, adding that such a conviction prompted GIPF to craft mandates supporting investment thesis backed by economic drivers; aligned to national policies; and complimentary to our investment objectives as a long-term investor.
He said this on Tuesday while speaking at the launch of HangalaPrescient, his address was premised on the role of Asset Managers and Infrastructure Financing in Namibia. HangalaPrescient manages three unit trust funds, the HangalaPrecient Money Market, Income Provider and Absolute Balanced Funds.
“The quantum of investment in infrastructure is still to be determined depending on the approval from regulatory authorities. These investments could not have been done so well and efficiently without a functioning financial services sector especially in the form of asset managers and brokers. Wisdom from experience have taught us that pension funds are not adequately geared towards directly investing, hence the importance of specialists in the form of asset managers,” he said.
Currently GIPF has invested N$44.3 billion into the Namibian economy. Of this amount N$41.3 billion is in listed space and N$3 billion in unlisted (a part of N$5.3billion capital commitment).
Nuyoma feels the infrastructure asset class is emerging and currently under researched and understood, for which few indicators exist for bench marking, particularly in the areas of; oil storage; toll roads and water utilities.
“It is our wish at GIPF that this emerging asset class will not be shaped by over pricing and over concentration in a few sectors. We wish to see this asset class reducing volatility and providing an inflation hedge within our Fund, proving to be an alternative to lower yielding long-term bonds. It is also our prayer that as we deploy investments into infrastructure, the impact should not only be in the form of fixed assets created, but also to have a full multiplier effect with minimal leakages going outside our borders. It is our fervent wish to see local companies coming at the centre of infrastructure implementation,” he told the audience.
“At the core of this is the careful manager selection that must strike the right balance of supporting local emerging managers yet with the requisite expertise; ensuring a skills pool from which to employ staff and select board members; ensuring a diversified pool of support services from valuation; due diligence; legal and tax advice to auditing. This has by no means been a smooth sailing journey, however every lesson learnt and every successful exit is a stepping stone for the future of the local investment management sector,” he said.
The GIPF CEO also lauded Hangala Prescient for its new addition Hangala Prescient Infrastructure Manager Pty Ltd.
“May you be dedicated to it as you have proved yourself with the asset management business. Many a times asset managers give up when they don’t receive a mandate from GIPF, but Hangala Prescient stood determined growing its AUM to N$1.7 Billion as at end July 2018. May your investment philosophy be rooted in good corporate governance and sound leadership, I am certain that with these traits you will sustain yourselves throughout the investment cycles to come on this long journey,” Nuyoma said.
Dr. Leake Hangala, Executive Chairman of Hangala Group explained that the Hangala Group has secured a multinational technical partner with the best global standards and practices. These practices and standards combined with our Namibian expertise ensure that we are able to provide our retail and corporate clients with the best services and innovative products.
“HangalaPrescient became part of the DNA of the country’s financial services anatomy and will thus significantly contribute to the Namibian capital market development, job creation and economic growth. Our objective is to ensure that HangalaPrescient brings appropriate financial solutions to all Namibians across the country. We are excited that the company will continue to play a pioneering role in the private equity sector which will see private capital invested in our country’s much needed infrastructure development, expansion and maintenance,” Hangala said.
Herman Steyn, Executive Chairman of the Prescient Group, said that Prescient Holdings remains committed to Namibia.
“Since Prescient’s entering of the Namibian investment market in 2011, we have been happy with the progress made thus far with regard to returns to our retail and institutional investors, the management of the financial sector market by the Regulator and the general governance climate of the country by the Namibian Government. Together with our local partners, we are committed to be a sizable player in the Namibian financial sector and thereby contribute to its development and growth as we bring to it modern investment management technology and the associated products and services that will ensure solid returns to our investors”, he stated.

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