21 Nov 2024
Strong Market Performance and Strategic Investments Drive Growth as NAM Prepares for FIMA Implementation
Namibia Asset Management (NAM) announced a 19.5% increase in assets under management (AuM), rising to N$20.2 billion as of September 30, 2024, compared to N$16.9 billion a year earlier.
"The operating environment has been volatile and challenging for several years," NAM stated. "During this time, NAM’s long-term investment approach and track record, together with prudent expense management, have delivered value to clients and shareholders. We remain excited by the return prospects available to active managers."
Retail AuM climbed by 13% to N$2.6 billion, up from N$2.3 billion in 2023, while institutional AuM grew by 20.5% to N$17.6 billion, compared to N$14.6 billion in the prior year. The company attributed the overall N$3 billion increase in AuM to strong market performance and net inflows totaling N$284 million.
Revenue rose by 3.7% to N$81.3 million from N$78.5 million in 2023. However, NAM noted an increase in operating expenses due to heightened investments in key resources.
"This was primarily a result of most of our AUM growth being recorded in the latter part of the year," the company said.
NAM highlighted the broader economic potential for Namibia, citing recent oil discoveries as a significant development in the country’s economic trajectory.
Looking ahead, NAM said it remains optimistic about its long-term strategy and has positioned the company for continued success in a demanding environment.
"We believe that investors who embrace a long-term perspective will be well rewarded while we continue to create value for the benefit of all our stakeholders," NAM added.
The company is also preparing for the implementation of the Financial Institutions and Markets Act (FIMA), which is expected to take effect in early 2025, with a 12-month transition period granted by the Namibia Financial Institutions Supervisory Authority.
"We will collaborate closely with all stakeholders to ensure full compliance within this timeframe," NAM said.
As part of its corporate social responsibility efforts, NAM emphasized its commitment to education and training through initiatives such as its bursary scheme, in partnership with the University of Namibia Foundation, and the Certificate in Theory of Accounting (CTA) program with Deloitte Namibia.
“As a responsible corporate citizen, we are committed to making a meaningful positive impact on society through our Corporate Social Investment (CSI) programmes,” the company said.
NAM concluded by reiterating confidence in its long-term investment approach, noting its focus on delivering value to clients, shareholders, and the broader community.