By Frederick Muller
New regulation places focus on transparency and member understanding
Retirement funds in Namibia are required to strengthen how they manage investments and communicate with members following the implementation of the Financial Institutions and Markets Act 2 of 2021 (FIMA).
A core requirement of FIMA is that every registered retirement or pension fund must have and maintain an Investment Policy Statement (IPS), unless exempted.
The IPS must also be made available to all members, including active, retired and deferred members, giving them clear insight into how their savings are invested.
NAMFISA has issued standards outlining what must be included in an IPS. This includes the fund’s investment return objectives, risk tolerance, asset allocation and investment restrictions.
These requirements are aimed at improving transparency and ensuring more consistent decision making across the industry.
A practical tool for trustees, not just compliance
While the IPS is a regulatory requirement, it also plays an important role in how funds are governed. At its core, it is a document that sets out how investment decisions are made and managed over time.
The IPS provides a clear framework for trustees, helping them make decisions that are consistent, disciplined and aligned to long-term objectives.
It also defines the roles and responsibilities of key stakeholders, which supports accountability and continuity when trustee boards change.
The IPS is not just a compliance document. It helps ensure that investment decisions are consistent and aligned to the long-term interests of members.
A well-structured IPS will typically outline the fund’s investment goals, its approach to managing risk and how assets are allocated to achieve these goals.
It also sets guidelines for monitoring investments and reviewing performance over time.
What members can expect and why it matters
For retirement fund members, the IPS provides important insight into how their savings are managed. It explains the level of risk being taken and how different investments are used to meet long-term objectives.
For funds that offer member investment choice, the requirements go further. Members must receive clear information, at least annually, on the investment options available to them and must have access to investment education.
This gives members a better understanding of their options and helps them make more informed decisions about their retirement savings.
Access to the IPS also promotes transparency and trust. It allows members to see how trustees approach investment decisions and how their savings are being protected and grown over time.
Why this matters now
As the retirement industry in Namibia adapts to FIMA, the IPS is now central to how funds demonstrate governance and accountability.
It brings together regulatory requirements, investment strategy and member communication in a single document. For trustees, it provides a clear framework for decision making. For members, it offers visibility into how their financial future is being managed.
Members are encouraged to request and review their fund’s IPS to better understand how their retirement savings are invested and what this means for their long-term outcomes. At Alexforbes Investments, we believe the IPS should be viewed as a practical governance tool that supports better investment decision making, clearer accountability and improved member understanding.
* Frederick Muller, Managing Director, Alexforbes Investments
