The Namibia Financial Institutions Supervisory Authority (NAMFISA) has published the Quarterly Statistical Bulletin for the 1st Quarter of 2015, highlighting the major developments in the financial industry.
The market capitalisation of the 34 companies listed on the Namibian Stock Exchange increased by 5.8% to N$1.8 trillion as at the end of the quarter. The increase in market capitalization is largely due to gains in prices of securities dual-listed on the JSE and other markets said NAMFISA.
The assets of unit trust schemes increased by 8.3% to N$45.6 for the quarter ended 31 March 2015. The schemes invested N$23.6 billion of the assets in domestic markets, which is 51.8% of total assets. Investments in the Common Monetary Area decreased by 3.3% while offshore investments increased by 9.8% over the period under review.
Investment managers had N$142.4 billion assets under management. The assets increased by N$6.2 billion or 4.6% from N$136.2 billion as at 31 December 2014. According to NAMFISA, the growth in assets can be attributed to capital growth and new inflows from investors. Pension funds contributed 8% to the growth in assets, while unit trust schemes and long-term insurers added 2.8% and 2.1% for the quarter. The managers invested 50.1% of the assets in the Common Monetary Area and offshore markets, with the Common Monetary Area accounting for 37% of the total.
The assets invested in Namibia increased to 49.9% from 49.0% in the fourth quarter of 2014. The listed equity market investments, which made up 49.8% of investments, gained 7.2% annually compared to 9.8% of the JSE/FTSE All Share Index. The local market contributed positively as it gained 6.4% quarterly and 21.8% annually according to NAMFISA.
The financial markets continued to grow based on overall market capitalisation. Assets under management of Collective Investment Schemes and Asset Managers continued to post positive returns. There was less activity on supervisory developments during the first quarter but the complaints department continued to shine on keeping the consumers of financial services attended to on all financial services issues by resolving almost all complaints (97%) raised during the quarter.