20 Apr 2015 16:20pm
WINDHOEK, 20 APR (NAMPA) The Desert Stone Fund (DSF) on Monday handed over N.dollars 1,5 million to the Government Institutions Pension Fund (GIPF) as dividend.
DSF is one of the special purpose vehicles (SPVs) appointed by the GIPF under its Unlisted Investment Portfolios. Unlisted investments are not listed on a stock exchange and are traded over the counter market.
This may seem to be a small amount considering the total capital of N.dollars 55,6 million invested in the fund, but it is, in our humble opinion, a sign of the projected benefits to come, said DSF Unlisted Investment Manager, Herbert Maier.
The DSF has been in business since May 2010 as a direct result of the commitment by and initiative of the GIPF to proactively involve itself in the development of the unlisted asset class in Namibia.
Investments by the DSF into the business of MobiCash Payment Solutions, Namibian Engineering Corporation (NEC) Power & Pumps and Stahl Construction were only concluded during the first quarter of 2013, yet are showing positive and certainly very promising returns, he said.
Maier indicated that as of December 2014, the DSF reports an average gross portfolio internal rate of return of 18,2 per cent, which is substantially made up of superior returns generated from both MobiPay and NEC Power & Pumps.
NEC Power & Pumps managed to declare and pay dividends to its shareholders during June 2014, which resulted in the DSF receiving N.dollars 2,7 million.
NEC Power & Pumps is a Namibian company that has diversified into major fields of operation such as power products, pumping products and renewable energy products.
In line with the Pension Funds Act of 1956 that was amended in 2011, pension funds are required to hold a minimum of 35 per cent of their investment in Namibian assets with the maximum of 3.5 per cent in unlisted investments.
In this regard, GIPF has through its Unlisted Investment Policy appointed a number of Fund Managers to act as intermediaries and manage the allocated funds in line with the fund's objectives.
Receiving the dividend, GIPF Chief Executive Officer, David Nuyoma said since inception of the programme, the GIPF has so far invested close to N.dollars 1,7 billion geared towards growth at home.
It is our belief that such funding supports local business models, enabling the necessary size to list on the Namibian Stock Exchange, he said.
He said the GIPF remains committed to support the local Private Equity Industry and believe this asset class is a good mechanism to diversify the portfolio, manage risk and generate positive return.
Nuyoma said the GIPF looks forward to existing fund managers pursuing fruitful capital-raising from other investor participants in order to build a robust investor base for capital commitments to this developing industry.