Government Institutions Pension Fund (GIPF) says it continues to scout for investment opportunities in the country and to date has invested N$44.3 billion in the local and international markets through listed and unlisted investments.
GIPF Chairperson of the Board of Trustees, Goms Menettèt told guest at the fund’s 30th anniversary celebrations that its hunt for local investment was aimed at complying with Regulation 28 of the Pension Funds Act, which requires pension funds to hold a minimum of 35 percent to a targeted level of 45 percent of their investments in Namibian assets with the maximum of 3.5 percent in Unlisted Investments.
“To date, GIPF has invested N$44.3 billion in the local and international markets through Listed and Unlisted Investments and is constantly looking at investment opportunities especially locally. Through this legislation, Pension Funds are encouraged to invest in the domestic market and to ensure that Namibian savings are utilized to stimulate development and to make a meaningful contribution to the economy and the development needs of communities by providing development capital to the non-listed sectors with high growth potential,” he said.
Menettèt, however, noted that the fund continues to face challenges in finding the right assets to invest in.
“It must be noted that this is proving to be a challenge due to the sheer size of the GIPF and its ability to deploy such large capital into opportunities. While listings on the Namibia Stock Exchange are slowly flowing through, the exposure that institutional investors have in such issuances are dependent on listing criteria and limitations,” he said.
The GIPF Chairperson said the fund’s unlisted investment has contributed positively towards job creation, infrastructure development and general economic growth in the country.
“The GIPF Unlisted Investment Policy (UIP) has recorded success in job creation, infrastructure development, and general economic growth. The ripple effects of our investments into this asset class is the multiplication of business entrepreneurs, an increase in the critical mass of sustainable businesses and the stimulation of market activities. We are very proud to be a pioneer of this concept in Namibia and we are of the view that the impact of our investments in this area would be robust and sustainable,” Menettèt said.
He also revealed that the fund had saved over N$100 million in management fees by creating its own internal treasury unit.
“During 2015, the Fund established a Treasury Department which manages assets over N$ 12 billion, saving the GIPF close to N$ 30 million in management fees per annum,” he said.
GIPF CEO, David Nuyoma speaking on the same occasion said the fund will continue with its objective of ensuring that it remains fully funded and consistently achieve high returns on investments.
“The Fund is prudently managed and self-administered in order to ensure members and their dependents receive market-related benefits, cost-effective and excellent administrative service. The Fund’s stellar growth from N$844 070 million in 1990 to an astonishing N$118 Billion as at 31 September 2019, is tacit proof of the success of the Fund’s liability-driven investment strategy that has yielded positive growth over the past 30 years. This Liability Driven investment strategy positions the fund to meet and make provision for its ever-increasing liability, to ensure that the members’ benefits are guaranteed and provided for up to 80 years into the future,” he said.
Meanwhile, the GIPF has announced the Fund’s solution upgrade from the Horizon solution to the Document Management Solution (DMS).
DMS is a workflow solution for the distribution of work between staff members when processing claims, which is responsible for handling and managing member documents received and dispatched from the Fund. GIPF took the decision to upgrade to DMS to reduce the time it takes to process registering documents, scanning, indexing and creating workflow cases.
“In our efforts to continuously provide excellent service delivery, the Fund internally developed DMS to enhance handling and administration of member and beneficiary documents. Through this solution, we will reap the benefits of an integrated system, improved processing of claims, enabled monitoring of turnaround times of claims and benefit payments as well as a paperless environment,” said Anna Hambuda, Manager: Records.
“Prior to DMS, three (3) separate systems were used to handle the registration of documents namely: document register, scan log work station and Horizon. The DMS combines the three (3) current solutions into a single solution. Other benefits include: introduction of the admission queue, end-to-end performance report on claim processing, quality image scanning and most importantly enhance efficiency in service delivery.”