Namibia Asset Management Loses N$5.3bn Mandate, Sees Financial Hit in 2027

Namibia Asset Management (NAM) has announced a significant blow to its finances with the loss of a N$5.3 billion institutional mandate, which will impact its financial performance in 2027. The mandate was withdrawn by an institutional client at the end of July to bring investment management in-house, consistent with the client's long-term strategy. This development has led to a 16.7% decline in NAM's assets under management (AuM) to N$18.5 billion at year-end.

Despite the loss of the mandate, NAM reported a 6.1% increase in profit attributable to shareholders to N$13.2 million for the year to 30 September. Headline earnings per share rose 5.8% to 8.34 cents, while revenue edged up 0.5% to N$93.7 million. The company's 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 due to lower variable costs.

NAM is also navigating the implementation of the Financial Institutions and Markets Act (FIMA), which introduces new regulatory requirements for non-banking financial institutions. The company is reviewing and restructuring aspects of its long-standing investment-management relationship with Coronation Fund Managers to meet these new requirements. Certain changes to the proposed operating model require approval from the Namibia Financial Institutions Supervisory Authority (NAMFISA).

The implementation of FIMA and the restructuring of the Coronation relationship are expected to bring about fundamental changes to NAM's operations. The company submitted its licence applications to NAMFISA in October and must achieve full compliance by 30 April 2027. NAM warned that the approval processes cannot be guaranteed, and the implementation will be challenging for the Group.

NAM's assets under management (AuM) fell from N$22.2 billion a year earlier, while average AuM increased to N$22.3 billion from N$20.8 billion. The company's operating profit rose 14.1% to N$18.4 million. NAM's 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.

The Namibia Securities Exchange-listed company aims 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. NAM's results announcement did not detail the proposed changes to the Coronation relationship. The company is working to ensure a smooth transition despite the challenges ahead.

The loss of the mandate had a limited effect on NAM's latest results, as it only affected the final two months of the reporting period. However, the full-year impact of the withdrawal will be reflected in the 2027 financial year. NAM's management is focused on navigating the challenges posed by the mandate loss and regulatory changes to ensure the company's continued growth and stability.

Key points

• NAM's profit attributable to shareholders rose 6.1% to N$13.2 million despite the loss of the N$5.3 billion mandate.
• The company's assets under management (AuM) fell 16.7% to N$18.5 billion at year-end.
• NAM must achieve full compliance with the Financial Institutions and Markets Act (FIMA) by 30 April 2027.