CHAMWE KAIRA
The status of the Financial Institutions and Markets Act (FIMA) remains uncertain, with no clear indication it will come into effect this year.
Namibia Asset Management (NAM) said the Act, in its current form, raises concerns about the long-term sustainability of the financial industry and business.
“We look forward to continuing to engage the Minister of Finance around how the Act can be implemented in a way that aligns with national interests and targets while also adhering to global best practice,” NAM said.
NAM emphasised that the regulations must fit the local context to avoid unintended negative impacts on industry.
FIMA will replace the current laws governing non-banking institutions regulated by the Namibia Financial Institutions Supervisory Authority (NAMFISA).
This includes retirement and medical aid funds and their administrators, short- and long-term insurers, collective investment schemes, and asset managers.
NAM said the current global environment is marked by volatility and uncertainty, with major decisions being made daily by world leaders.
“It is during times like these that an active investment manager like NAM, with a long-term, fundamental investment philosophy, has the potential to add significant value to our client portfolios,” the company said.
NAM’s interim results for the six months ending 31 March showed the period was one of heightened market volatility, affected by the Trump administration’s trade tariffs and protectionist policies, which increased global uncertainty.
Locally, these challenges are compounded by socioeconomic issues. Despite this, NAM’s interim financial results met management’s expectations.
Total assets under management (AuM) rose by 0.5%, from N$20.2 billion at 30 September 2024 to N$20.3 billion at 31 March.
This growth resulted from positive market movements despite net outflows of N$247 million. Average AuM increased by 15.5% from N$17.5 billion at 31 March 2024 to N$20.2 billion.
Revenue from contracts with customers grew by 16.5% to N$37.5 million, compared to a 2.3% decline to N$32.2 million in March 2024. This was due to a higher AuM base during the period.
Total operating expenses increased by 13.8%, driven by higher portfolio management fees, increased service provider costs, and inflation. NAM said this rise stayed below the revenue growth rate.
“We maintain a sharp focus on expense management while maintaining the level of investment needed to support our operations and ensure the sustainability of our business,” the company said.
Headline earnings per share increased by 3.0% to 3.46 cents, up from 3.36 cents in March 2024. NAM said it continues to explore opportunities to drive future growth.
