The Government Institutions Pension Fund’s (GIPF) assets have increased to N$151 billion according to the fund’s 2023 Integrated Financial Report.
“As of 2023, GIPF has a total asset value of N$151 billion, of which N$110.7 billion is managed by investment managers, N$1.9 billion are direct investments and N$38.5 billion is GIPF Treasury Portfolio,” GIPF Chief Executive Officer, Martin Inkumbi said on Tuesday.
A layout of the five-year performance shows that the Fund grew from N$117.52 billion in 2019, then slowed to N$108.48 billion in 2020, before sharply growing to N$135.44 billion in 2021, and N$147.04 billion in 2022.
GIPF has 50% of its assets invested in Namibia, with 24% internationally, 15% in South Africa, 5% in China plus 3% investment in Africa and Emerging Markets, respectively.
These assets are split among bills, bonds and securities (N$43.2 billion), Open trades and accruals (N$175.5 million), alternative investment (N$18.8 billion), listed equities (N$58.2 billion), cash (N$7.8 billion), collective investment schemes N$22.8 billion and derivatives at N$519.5 million.
In terms of unlisted investments, 35% is in Namibia, 28% in Africa, 19% in Europe, 12% in South Africa, and 3% each in China and the United States of America.
In the 2022-2023 financial year, GIPF paid out N$6.9 billion in claims, exceeding the N$4.7 billion it received in contributions.
This has been the trend for the past five years, with payouts on a continuous increase. In 2019 GIPF paid N$4.5 billion, rising to N$4.9 billion in 2020, N$5.2 billion in 2021 and N$5.5 billion in 2022.
The Fund recorded a smaller contribution of N$4.3 billion in 2019, N$4.4 billion in 2020, and N$4.5 billion in both the 2021 and 2022 financial years. GIPF receives a 7% of monthly pensionable salary contribution and 16% from employers.
The GIPF highlighted the increasing cost of serving as well as improving departmental engagements to manage costs as another challenge.
The fund, however, stated that despite challenges, it has improved its funding level and reserves, while also ensuring the Fund remained within allowable budget limits, in addition to obtaining a clean audit opinion over the period.
“Our funding level target is between 105 to 115% to ensure sustainability, and at the moment we are standing at 115.5%,” Inkumbi said.
Furthermore, the report indicates that GIPF paid N$3.1 billion in monthly pension benefits, whereas N$2.1 billion was paid as a lump sum.
A further amount of N$1.5 billion was for resignation, N$137 million on death benefits, and N$9.3 million in funeral cover.
“This report highlights the final year of the Strategic Plan for the period 2018 to 2023, which was developed around four strategic themes to ensure that we manage the resources and relationships needed to create value over time. A considered assessment of the capitals informed both our strategy and the internal materiality process, guiding the content and structure of this report,” said GIPF Board of Trustees’ Vice Chairperson Evans Maswahu.
“Therefore, the Board of Trustees of the GIPF acknowledges their responsibility for upholding the integrity of this report which was reviewed and which they believe addresses those matters that significantly impacted the Fund’s ability to create value over the short, medium, and long term. The Integrated Annual Report for 2023 thus presents a balanced account of the Fund’s performance for the reporting period and accurately reflects our strategic commitments for the upcoming year.”
GIPF is a statutory pension fund that provides guaranteed pensions and related benefits to civil servants and employees of participating employers in Namibia.
