NAM loses N$5.3bn mandate

Namibia Asset Management (NAM) says the loss of a N$5.3 billion institutional mandate will weigh on its finances next year, as it also restructures parts of its relationship with South African partner Coronation Fund Managers to meet new regulatory requirements.

An institutional client withdrew the mandate at the end of July to bring investment management in-house, the Namibia Securities Exchange-listed company said in its reviewed results for the year to 30 September.

“The withdrawal was consistent with the client’s long-term strategy to insource the mandate,” NAM said. It did not name the client.

Assets under management (AuM) fell 16.7% to N$18.5 billion at year-end, from N$22.2 billion a year earlier. The full-year impact of the withdrawal will be reflected in the 2027 financial year.

The loss had a limited effect on the latest results because it affected only the final two months of the reporting period, while average AuM increased to N$22.3 billion from N$20.8 billion.

Profit attributable to shareholders rose 6.1% to N$13.2 million, while headline earnings per share increased 5.8% to 8.34 cents.

Revenue edged up 0.5% to N$93.7 million. Base fees grew 11.8% to N$87 million, offsetting a 56.5% decline in performance fees to N$6.7 million.

Operating expenditure fell 5.1% to N$75.2 million, largely because of lower variable costs, lifting operating profit by 14.1% to N$18.4 million.

NAM is also adjusting to the Financial Institutions and Markets Act (FIMA), which took effect on 1 May and introduces new licensing, governance, outsourcing and other regulatory requirements for non-banking financial institutions.

“FIMA will require fundamental changes to how the Group operates,” NAM said.

The company is reviewing and restructuring aspects of its long-standing investment-management relationship with Coronation. Certain changes to the proposed operating model require approval or non-objection from the Namibia Financial Institutions Supervisory Authority (NAMFISA).

“While the Board is committed to a smooth transition, the implementation will be challenging for the Group and the approval processes cannot be guaranteed,” NAM said.

The results announcement did not detail the proposed changes to the Coronation relationship.

NAM submitted its licence applications to NAMFISA in October and must achieve full compliance by 30 April 2027.

The company said it wanted to capture a larger share of Namibia's investment industry, where assets managed by investment managers grew 16.1% year-on-year to N$353.8 billion at 30 June 2026.

The board declared a final dividend of six cents per share, in addition to the six cents per share declared and paid during the financial year.