Coen Welsh | Nov 14, 2017 | 0
Asset firm reaches 20 year milestone
Established in April 1996, Namibia Asset Management (NAM) Limited has managed to weather the storm as over their 20-year existence, their Assets Under Management pegged at N$500million has grown to N$20 billion to date.
This week the firm celebrated their 20 year milestone of providing independent asset management service to institutional and individual investors.
“Our main reason for existence is to provide our clients with a platform to create and sustain financial wealth through the investment of their savings in good investment opportunities both locally, in the Common Monetary Area (CMA) and offshore,” said Chief Executive Officer at Namibia Asset Management, Eino Emvula.
Their journey started way back when they were founded originally as a subsidiary of the then holding company, Namibia Harvest Investment (NHI).
“NHI was a broadly diversified financial services group that was successfully listed on the Namibian Stock Exchange in July 1998 with assets of N$200 million and zero debt. Namibians from all walks of life participated in the Initial Public Offering of the company on the NSX and funded the company. After ten years in existence, in May 2006, the NHI board of directors decided to refocus the business to asset management only, which resulted in all the non-core businesses being closed,” he said.
On 29 May 2006, NHI’s name was changed and that is when Namibia Asset Management Limited (“NAM”) was born so as to reflect the amended structure of the company.
The firm currently manages various type of mandates depending on clients’ needs. But their core range of investments or funds are Regulation 28 compliant (excluding unlisted investments) Global Balanced Mandates, which are suitable for pension/retirement funds and other long-term investors with similar risk profiles. They also manage Pure Equity Mandates both local and in the Common Monetary Agreement, and Low-Equity Mandates which are typically suitable for employees that are entering retirement and wish to draw an income; and finally, Inflation Targeting (also known as Absolute Return) Funds.
“In conjunction with our technical partner, Coronation Fund Managers, we also offer direct Offshore Investments to our clients,” added Emvula.
“Our journey over the past 20 years has been fulfilling and meaningful, thanks to the support and trust that our clients have in us by entrusting their savings to us. This growth has been a result of a combination of investment returns that NAM has generated for its clients and new investments from both new clients and existing ones. In 1996 we had 12 clients, but today we provide our services to a multitude of Namibians, both institutions and individuals. We are indeed humbled by the support,” Emvula said.
The accomplishment of reaching the 20-year milestone, they attribute to the unwavering support of their clients and various stakeholders including their investment consultants who has assisted greatly with their value-driven investment philosophy with a long-term view.
“The investment returns that we have managed to achieve on behalf of our clients are coupled to our top-class client service. By way of an example, a N$100,000 invested with us in our Global Balanced Fund in 1996 would be worth N$1,400,180 today compared to N$1,207,840 from the average manager and N$708,450 if such funds were 100% invested in the NSX Overall Index,” he said.
“Over the last 20 years the investment market has observed few key moments from the dot.com crisis in the early 2000’s, the Asian crisis, the global financial crisis in 2007/2008 and most recently the slowdown in the Chinese economy and its negative impact on commodities and emerging markets. The main reason that has enabled us to navigate these crises would be the fact that we continued to stick to our investment philosophy (of being valuation driven) and really having a long-term view in our investment decisionmaking process,” he highlighted.
“Namibia Asset Managers will continue to invest in its people to ensure sustainability and invest in the country. We looking forward to the roll-out of NDP5 as well as the Harambee Prosperity Plan to ensure that we make our contribution by allocating capital to those opportunities that will enable our nation to prosper while at the same time the owners of capital, the savers, and our clients, benefit from the investment return to be generated from such opportunities,” he added
Furthermore Emvula said, they have recently launched their Money Market Fund, which will serve investors with a low risk appetite or who need to park funds in a good investment but still want to enjoy above-average money market returns.