GIPF's market value increases

06 Aug 2013 09:50
WINDHOEK, 06 AUG (NAMPA) – The market value of the Government Institutions’ Pension Fund (GIPF) at the end of June 2013 totalled N.dollars 63.4 billion, representing a 22.53 per cent increase for the 12 months’ rolling period.
GIPF Chief Executive Officer David Nuyoma announced on Tuesday at a media briefing here that the Fund performed exceptionally well for that quarter, which ended June 2013. It also outperformed its peers, especially those with a “balanced managers’ approach”.
“Taking into account the performance of the fund over the six-months’ period, the Fund returned 7.23 per cent against a benchmark of 6.85 per cent, providing an outperformance of 0.36 per cent.
In our view, this return remains exceptional, considering the size of the portfolio and the volatility of the markets during the quarter under review,” he beamed.
According to Nuyoma, the performance of the Fund over a single quarter does not necessarily indicate performance levels over the long-term.
He said GIPF always takes a long-term view as a logical way of assessing the Fund’s performance.
“Risk-adjusted returns of the Fund over all periods compares favourably to other Funds with similar constraints such as cost of trade, the limited lucrative shares in the market and challenges associated with larger portfolios,” he explained.
On equities, Nuyoma noted that the Namibian equity under-performed its benchmark by close to one per cent, as the illiquidity of the Namibian market continues to have an effect on the ability of its asset managers to gain exposure to assets.
The cash and bond mandates performed well, compared to their benchmarks.
“Against this economic backdrop, the GIPF remained resilient to the global economic slowdown, and we attribute this achievement to our strategy of changing to a specialist structure, as opposed to maintaining balanced portfolios.
This strategy allowed us to select managers on the basis of skills and areas of strength, while avoiding the risk of placing all our assets with a few managers purporting to be skilled in all areas,” he added.