OMIGNAM: Meaningful Economic Contribution Through Multifaceted Approach

OMIGNAM is the largest asset manager in Namibia, where a specialist team is responsible for delivering sustainable, long-term investment returns to institutional, corporate and retail clients. A variety of solutions are on offer, ranging from core equity portfolios and alternative investments to unit trusts for individual investors, which in turn span conservative to aggressive in their delivery of returns and afford access to the growth potential of shares and other investment vehicles.

Managing funds in excess of N$40 billion on behalf of a large and diverse customer base, OMIGNAM sets out to provide a comprehensive, flexible and customised suite of investment management services to the Namibian market. “We believe in a multifaceted approach to investments favouring fundamentals,” OMIGNAM remarks. “Our approach is that of a blended top-down bottom-up fundamental approach.

“We strive to be consistent with the vision of long-term wealth creation and combine unique methodologies to manage risk in a portfolio context. This in turn results in benefits of diversification and the ability to optimise risk and return.

“We believe that asset allocation works and that history forms a good understanding of the future. Delivering consistent results is the key to future investment success.”

TUNGA FUND DEVELOPMENTS

The Tunga Real Estate Fund is an unlisted property and housing fund managed by OMIGNAM which, in the same way as all its alternative investment funds, has the objective of supporting socio-economic development in Namibia whilst generating market-related returns for investors. “In addition to the return objective,” OMIGNAM expounds, “investments must contribute to the economic empowerment and social upliftment of disadvantaged communities in Namibia.”

OMIGNAM has just revealed that the Tunga Real Estate Fund has made available funding to develop an initial 224 serviced plots of land, or ‘erven’, and build affordable houses in Mariental, a city of 10,000 inhabitants in south-central Namibia. The first phase of land servicing for 56 residential erven has been completed, and sales have commenced as a further sub-division is underway which will produce 105 additional plots with more affordable serviced land available at lower overall purchase prices.

Future phases and development will include walk-ups, offices and retail outlets, a solar farm, a school, and a clinic, OMIGNAM reports. In development by Dynamo Property Developers, another proudly Namibian company with a record of accomplishment in project unlocking, the investment forms part of Old Mutual Namibia’s unlisted property strategy; this is targeted at the deployment of institutional funds in housing development projects to address the widespread shortage of affordable housing opportunities across the country.

“This project is a testament to our ability to raise institutional funds from some of Namibia’s leading institutional investors for deployment in projects that address Namibia’s most critical developmental needs, while still delivering commensurate returns for investors,” said Lionel Kannemeyer, Old Mutual Investment Group MD.

“Investors, principally representing pension fund members and policyholders, will benefit from positive returns and tangible investments in communities across the country.”

This development comes after March saw N$30 million invested towards the development of 307 serviced ervens and affordable houses in Kaisosi, Rundu, in the Kavango East region of north-eastern Namibia. Of this, Kannemeyer said the listed insurer was committed to reducing the country’s housing backlog by developing quality and low-cost houses.

“The project is currently being rolled out in phases and will grow organically as the demand for houses increases in its target market,” he furthered. “Our hope is to play a role in addressing the housing shortage our country is facing. Through our various funds and projects, we hope to assist Namibians in the country by creating quality housing opportunities at affordable prices.”

MEANINGFUL DOMESTIC INVESTMENTS

Through its domestic investment portfolio, OMIGNAM is totally committed to addressing the critical development challenges it has identified as being faced throughout the country, an ethos at the heart of its alternative investments arm. “Domestic investments can ensure that Namibian savings are effectively utilised to stimulate development by making a meaningful contribution to the economy,” OMIGNAM explains, “and the developmental needs of communities through funds managed by Old Mutual’s Alternative Investment function.

“This unique investment capability is committed to making a positive difference, with a passion to achieve strong investment returns while facilitating economic growth and job creation. The alternative investment team has the longest track record at managing alternative investments, having managed funds on behalf of the Old Mutual and third-party institutional investors since 2004.”

Through the funds it manages Old Mutual Namibia has been able to make considerable differences within the spheres of housing, renewable energy, education, and health, not least in its various housing development projects. On top of the investments in Otjiwarongo, Rundu and Mariental, previous land delivery initiatives were successfully delivered in Walvis Bay and Windhoek; commercial properties of over N$650 million were deployed in various towns including Windhoek, Rehoboth, Keetmanshoop, Arandis, Grootfontein, Ondangwa and Oshikango.

“Our investments in a myriad of bankable projects, particularly in the housing and infrastructural development space, seek to balance commercial returns with a positive social impact,” said Kannemeyer. “Our track record is testament to the fact that attractive returns and a positive impact are not mutually exclusive,” he added, as he went on to note the success of alternative investments within the renewable energy sector. 

“We are cognisant of the need for additional power generation to service the needs of both communities and industry, and currently invested in six renewable assets with a combined power generation capacity in excess of 25 MW which feed into the national power grid. These are located from Rosh Pinah in the far south, Keetmanshoop, Rehoboth, Grootfontein, to Otavi and Okatope in the far north of Namibia,” he detailed.

“Human capital investment is another critical component of any country’s socio-economic growth and future; therefore, we have endeavoured to invest in various schools and institutions of learning to the tune of approximately N$70 million for projects which are located in Windhoek, Walvis Bay, and even as far as Nkurenkuru.”

Healthcare’s critical importance has not escaped OMIGNAM’s attention, either, and it has funded medical infrastructure to the value of some N$30 million developed and invested in Rehoboth and Ondangwa. “We have developed investment structures which are flexible enough to fit local circumstances and evolve over time as the local market circumstance develops,” Kannemeyer finished.

“Old Mutual therefore values the importance of local domestic investment and continues to raise funds from pension funds to support and fund developments which would not only improve the socio-economic development of the country but also to ensure sustainable Return on Investment (ROI) goals are met.”