LOCAL investment firm Areysteq Asset Management has been announced as the new Government Institutions Pension Fund’s incubation programme beneficiary.
At the end of September this year, the company, headed by Purvance Heuer was managing about N$689 million of the fund’s assets.
The incubation programme was introduced as a tool to have more Namibia asset managers handling local pension money, as opposed to South Africa managers, who have for some time been the biggest beneficiaries.
GIPF has set aside around N$4,2 billion, and Areysteq is one of six companies that have been identified.
Heuer leads a team of eight people, and said they have a passion for investments and the investment management industry.
He says the incubation programme is a stepping stone in reaching the company’s vision of becoming a regional boutique asset management business.
“We hope to successfully complete the programme by complying with the conditions of the mandate and to graduate to a fully fledged investment management company,” he says.
Arysteq says they seek to increase the local pool of skills, build capacity and improve the local economy with local employment, thereby contributing to local spending and domestic tax revenue.
The company employs a 100% Namibian team comprising eight skilled and experienced professionals, of which three are chartered accountants, two are chartered financial analysts, two have undergraduate degrees in finance, and one has an honours degree in economics.
So far under their unit trust scheme they launched three funds: a money-market fund, a balanced fund, and a real-return fund.
The asset manager currently provides six institutional clients with services.
Heuer says their investment strategy follows two main philosophies: firstly, the margin of safety, in which they ensure if a mistake is made, it is not expensive, and secondly, they give themselves a long term to realise the returns they wish to generate.
Heuer says the company views Covid-19 as a temporary “exogenous event that is of a short-term nature and will pass”.
He called on other institutions to follow on the first step taken by the GIPF in setting up their own incubation programmes “to further add to the development of the industry in Namibia”.
The GIPF says the programme aims to address the need for active beneficial participation of Namibian professionals in the asset management industry, and will run for five years.
After this the fund will assess the asset managers’ performance.
Depending on their success, they will continue to manage the GIPF’s assets on the same basis as any other conventional asset manager.
The programme consists of six managers with no affiliation to South African corporates.
The adjudication and appointment of the asset managers followed a process of identifying talent to be nurtured.
To allow for meaningful portfolio management the incubation managers were allocated South African Listed Equity Mandates to manage.
This means they will only invest in companies or projects related to those trading publicly on the stock exchange, excluding privately owned and small companies.
“It is important to note the incubation programme is a listed mandate initiative. It falls outside the unlisted investment commitments, yet complements our investment initiatives,” the GIPF says.
With their incubation initiative it will create more opportunities for the next generation of fund management experts, the fund says.
Each of the managers were allocated around N$700 million and will be announced to the public in time.
Email: [email protected]