GIPF soars to N$61 billion

A combination of a weaker Namibia dollar, “buoyant” equity markets and inflation linked bonds have helped the Government Institutions Pension Fund’s (GIPF) market value to soar 23.04% to N$61 billion compared to the previous period, the fund said this week.
In the period under review, the GIPF continues to outperform Namibia balanced funds with annualised returns of 23.05% compared to 18.38% of the Namibian balanced average while having a significantly lower risk.
Elvis Nashilongo, the Acting General Manager: Marketing and Corporate Communications told the Economist upon inquiry that the fund’s big jump in value is a result of a combination of equity markets performance, a depreciating currency and inflation linked bonds.
Nashilongo said: “Not only have equity markets world-wide been buoyant, but the depreciation in the currency along with strongly performing low-risk asset markets, like bonds and inflation linked bonds, have all done well over the last 12 months. Nashilongo added that since 34% of the fund’s investments were outside Namibia and South Africa, the depreciation in the currency benefited the fund as expected. “Kindly note that the currency a year ago was viewed to be at very high levels, and open to depreciation risk,” he said.