SSC appoints asset managers for external portfolio

09 Nov 2017 19:20pm
WINDHOEK, 09 NOV (NAMPA) - The Social Security Commission (SSC) Board on Thursday appointed four independent investment management firms to manage the commission’s external portfolio which amounts to N.dollars 2.5 billion.
The companies are Allan Gray Namibia, Investec Asset Management, Prudential Investment Managers, and Namibia Asset Management.
Speaking at a media conference, SSC Executive Officer Milka Mungunda said the appointment, which is effective from January 2018, comes after an extensive review Investment Policy review exercise in 2016.
Mungunda said the new Investment Policy which was approved by line minister, balances the SSC’s desire to preserve the investable assets in an uncertain investment universe, which presents potential growth opportunities.
She added that a broader asset and geographic portfolio allocation approach was adopted and will be implemented by the appointed investment managers under the new mandates.
“Social Security funds will be invested offshore, outside Namibia and South Africa for the first time in the history of the Social Security Commission since inception,” said Mungunda.
She confirmed that the SSC had advertised for investment management services and linked investment services providers, explaining that the process of appointing independent investment managers was a vigorous evaluation and included various criterion.
She also explained that the process of adjudication and evaluation, after 20 bids were received, was handled by the Investment Committee with the support of independent investment consultant, Selekane Asset Consultants.
Furthermore, Mungunda added that SSC recognises that investment managers were selected according to their investment staff depths, consistency of investment philosophy and long term performance track records among other criteria.
Mungunda said the commission, with the support of their investment consultant, will develop the incubation policy to consider Namibian majority-owned investment managers.
“Social Security Commission remains confident that the asset managers will deliver on the Investment Policy standard and the Board’s expectation of preventing capital loss and to earn returns in excess of the agreed benchmarks,” she noted.