GIPF commits N $ 700 million to Catalyst


The Government Institutions Pension Fund (GIPF) committed N $ 700 million to Catalyst Investment Managers, which recently became the fund’s third incubation asset manager.

Catalyst is a six member private investment management firm founded by Brown Amuenje, who is also the founder and portfolio manager.

Former Namibia University of Science and Technology Chancellor Tjama Tjivikua is the chairman of the board of Catalyst, which was founded in 2017, while economist James Cumming and Jerome Davis are the other members. of the three-member board.

Catalyst, according to GIPF, is founded on the principle of putting the interests of clients first and offering Namibians the ability to manage their own money.

This incubation program was created by GIPF in 2019 to respond to the need for active and beneficial participation of Namibian professionals in the asset management sector, to develop their capacities and to bring the expertise with the necessary skills to integrate asset management.

GIPF has set aside N $ 4.2 billion to invest with six incubated asset managers. Mumi Investments and Arysteq Asset Managers got their allocations last year and this year.

Leevi Tshoopara, the GIPF-listed investment manager, says the incubation program is intended to emulate other large asset owners in the region who have embarked on similar initiatives to empower their own professionals to l investment to enter the sector and become active market participants.

“If successful, this program will open up opportunities in the future for more entrants to the industry, thus completing the loop of the investment ecosystem between asset owners, asset management companies. and the stock market, ”he said.

GIPF said Catalyst was appointed following a rigorous bidding process conducted by an investment consultant in conjunction with GIPF management and board.

“Catalyst is supporting GIPF in this endeavor. Our hope is that most investors, clients and asset owners emulate the work of GIPF, ”said Amuenje.

Although a newcomer to the local investment landscape, Catalyst’s investment philosophy and process has ensured that the GIPF portfolio has outperformed the benchmark, with a net worth of N $ 845 million, particularly during the Covid-19 pandemic which caused panic and losses during the market downturn. from 2020.

The company’s investment philosophy is based on investing in companies that generate a high return on invested capital; invest in companies with low to very low debt; and invest in companies managed by prudent capital distributors who focus on returning value to shareholders.

“The duration of the program is five years over which we will assess the overall performance of asset managers. However, to minimize performance risks during the period, GIPF tracks the monthly performance reports of these asset managers and also performs internal operational due diligence midway through the program. This allows GIPF to report and remedy problems. Ultimately, this requires a more hands-on approach to other conventional asset managers, but it ensures that the fund has a better idea of ​​how asset managers perform over the program period, ”added Tshoopara.

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