2015 - gipf · ms ellaine samson (till august 2014), ms elsie beukes, ms kandali nuugwedha (till...

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GIPF ANNUAL REPORT 2015

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The circle is our symbol of longevity and continuation. It represents how our products, services and directives all come together in one holistic unity – every action feeding into the next.

Welcome to the Circle of Understanding.

THE FOUNDATION

THE DREAM

THE FIRE

Prosperity Green

Sky Blue

Sun Gold

Why the circle?

GIPF stands to safeguard the financial prosperity of our members. Who we are and what we stand for is all contained in our newly envisioned corporate logo.

This is our brand promise. This is our mission. We are here for you. We are GIPF.

GIPF is a business model directed by sound investment decisions and years of financial expertise. As a member of GIPF, and a user of our products and services, be assured you are standing on a solid foundation of know-how and credibilty.

GIPF has one primary goal: To ease the minds of our valued members by having them know that their money is always working hard for them. GIPF is committed to ensuring every cent you invest always comes back full-circle to your pocket.

We are ceaseless, tireless – we will not stop. We are here to benefit our members and that’s exactly what we work towards every single day. We’re here to safeguard your financial wellbeing and peace of mind. We’re here for you!

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WHAT MAKES GIPF?


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4 Vision, Mission and Core Values

5 Corporate Governance Statement

11 Board and Committee Meetings attended

12 Chairperson’sReport

15 The Board of Trustees

20 ChiefExecutiveOfficer’sReport

24 The Executive Management Committee

27 Annual Financial Statements

35 StatementofResponsibilitybytheBoardofTrustees

36 StatementofResponsibilitybythePrincipalOfficer

37 IndependentAuditor’sReport

CONTENT

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VISIONTobealeadingpensionfundandamodelcorporatecitizeninNamibia.

MISSIONTosafeguardandgrowtheFundforthebenefitofitsstakeholdersandNamibia.

CORE VALUESIntegrity:

Wewillalwaysbehonest,fair,transparentandtrustworthyineverythingwedo.

Service Excellence:Wewillstrivetodeliverthehighestqualityofservice(right,fastandhumane)toallour

stakeholdersinaninnovative,professionalandrespectfulmanner.

Teamwork:Webelievethatteamsachievemorethanindividuals.Wethereforeundertaketoworktogether

asateaminsupportofoneanotherinpursuitofourvision.


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“Every organisation needs a process to makedecisions. Governance enables an organisation,fromthesimplesttomostcomplex,tomakevalue-creatingdecisionsonbehalfofstakeholderswithinaframeworkofaccountability.Accountabilityoftheboardisfundamentaltooursystemofgovernance.”(PeterDey,CanadianGodfatherofCorporateGovernance)

Sound corporate governance provides the basis forGIPFtorealiseitsvision“tobealeadingpensionfundandamodelcorporatecitizeninNamibia”.

The Fund’s governance philosophy is based on thePension FundsAct, 1956 (ActNo. 24 of 1956), theGIPFRulesof1999,theNamcodeof2014,theSouthAfrican Financial Services Board’s Pension FundCircular130of2007/2008,theNAMFISACircularonPensionFundsCorporateGovernanceNo1of2003,theGIPFBoardCharterandvariousothercorporategovernance policies, collectively constituting thecorporategovernanceframework.

1. The Board of TrusteesThe Board of Trustees governs the Fund in accordance withthecorporategovernanceframeworkandisthuschargedwithahighleveloversightoftheFund’sstrategy,risk,sustainabilityandorganisationalperformance.

1.1 Board CompositionThe Board consists of nine trustees, who are appointed intermsofsection10(1)oftheRulesoftheFund.Oftheninetrustees,threeareappointedbytheGovernment,three by the Public Service Commission, and theremaining threebyorganised labour (i.e.oneby theNamibianNationalTeachers’Union(NANTU)andtwobytheNamibianPublicWorkers’Union(NAPWU).

1.2 DutiesThe duties of the Board of Trustees are: - tomanage,controlandadministertheFund;

CORPORATE GOVERNANCE STATEMENT- toensurethatproperinternalcontrolsystems areinplacetomitigatesignificantrisksfacedby theFund;- toestablishariskmanagementframeworkand itsreview;- toprovidestrategicandpolicydirectionforthe managementoftheFund;- toreceiveregularmanagementreportsto monitoroperationalcompliance;- toproposeamendmentstotheRulesoftheFund;- todeterminetheinvestmentpolicy,setting out investment guidelines and performance benchmarksinlinewiththepolicyand- toestablishandmanagestakeholders relationship

1.3 Board CommitteesTheBoardensuresfiduciaryeffectivenessthroughBoard committees, which assist it in discharging its dutiesandresponsibilities.TheBoard isassistedbyfivecommitteesnamely,- theAuditandRiskCommittee;- theBenefitsandAdministrationCommittee;- theInvestmentCommittee;- theLegal,GovernanceandCompliance Committee;and- theRemunerationandHumanResources Committee.

The Committees operate under a set of formal terms of reference and the chairperson of each committee reportstotheBoardduringscheduledmeetings.

The notable highlights of the board during thereporting period were:- Submissionoffinancialstatementstothe Regulatorinduetime;- Timeousapprovalofthebudgetandits implementation;- Obtainingofanunqualifiedauditfortheyear ended2014;

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- Appointmentoftheactuarialconsultants, HumanityEmployeeBenefits;- ConsiderationandapprovaloftheInternalAudit PlanbytheAuditComittee;- theannualreviewofthenewstrategicplan(2013-2018)andre-alignmentoftheorganisational structureaccordingly;- SuccessfulimplementationofthePerformance ManagementPolicyandProceduresand MonetaryIncentivesStructure;- Successfullaunchandimplementationofthe GIPFrebranding;- ApprovaloftheRiskAppetiteStatement;- ApprovaloftheResponsibleInvestmentPolicy;- AdoptionoftheNamCodeasaguidelineforthe GIPF’sphilosophy;- ApprovaloftheconsolidatedCorporate GovernanceFramework;- ApprovaloftheProxyVoting,Corporate GovernanceandEngagementPolicy- ApprovaloftherevisedProcurementPolicy;- Approvalofthepensionincreaseforthe 2014/15financialyear- Approvalofthedisabilitybenefitsincreasefor the2014/15financialyear- AppointmentoftheGeneralManager:Finance- Re-appointmentofDrSakeusAkweendaasan independentmemberontheLegal,Governance and Compliance Committee

1.3.1 Audit CommitteeThecommitteeconsistsof fourmembers,oneof whom is an independent external memberappointed on the basis of his/her expertisein finance and/or auditing. The members ofthe committee during the reporting period were: Mr Goms Menette (Chairperson), MsSarafina Kandere, Mr Hubert Mootseng, MrI-Ben Nashandi (from September 2014) andMr Erastus Hoveka (independent externalmember).

The audit committee’s mandate is to ensureeffectiveinternalcontrolsandriskmanagementaswellaspromotetheintegrityoffinancialreportingintheFund.

The specific responsibilities of the committeeinclude the following: (a) toreviewandrecommendtotheBoardof Trusteestheannualfinancialstatements;(b) todealwithmattersrelatingtointernal control, accounting policies, reporting and disclosure;(c) todealwiththeengagementofexternal auditorsanddeterminefeespayabletothese auditors;(d) toreviewandapproveinternalauditpolicies, plans,reportsandfindings;(e) toevaluatetheperformanceofexternal auditors;(f) toreviewexternalauditplans,findingsand reports;(g) toassisttheBoardinexercisingtheoversight ofriskmanagementandgovernance;(h) toreviewmattersofanactuarialnatureand recommendthosetotheBoard;(i) todealwithmattersrelatingtoICTrisksand governanceonsuchoccasionsasmay require.

TheCommitteemeetsonaquarterlybasis,orsuchtimesasthecircumstancesmayrequire.

1.3.2 Benefits and Administration CommitteeThecommitteeconsistsoffour(4)members.Themembers of the committee during the reportingperiodwere:MrRudolphKamerika(Chairperson),Mr Hubert Mootseng, Ms Ellaine Samson (tillAugust2014),MsKandaliNuugwedha(tillAugust2014),MsMariaDax(fromSeptember2014),MrHeinrichIita(fromSeptember2014),andMsElsieBeukes(fromSeptember2014).


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The Benefits and Administration Committee’smandate is to ensure a sound administrative framework for the Fund and an efficientmanagement and distribution of member andbeneficiarybenefits.

The specific responsibilities of the Committeeincludethefollowing:-(a) toreview,adviseandmakerecommendations on matters pertaining to administrative policies oftheFund;(b) toreview,adviseandmakerecommendations ontheFund’sbenefitsfromtimetotime,on matters pertaining to guidelines and processes ondispositionofdeathbenefitsandtheactual distributionofdeathbenefitsintermsof section37CofthePensionFundsAct;(c) toadvise,reviewandmakerecommendations on pension increases to the Fund (d) toreview,adviseandmakerecommendations on matters pertaining to the procurement of goodsandservicesfortheGIPF;(e) todevelop,reviewandmake recommendations to the Board for the approvalofthecommunicationpolicy, strategyandplans,thebrandstrategy,the social investment programs and governance ofstakeholderrelations;and(f) toreview,adviseandmake recommendationsonanyothermatterofa general administrative nature which warrants the attention of the Board through its Committees.

1.3.3 Investment CommitteeThecommitteeconsistsoffive(5)members.Themembers of the committee during the reportingperiodwereMr.MiheGaomabII (ChairpersontillAugust 2014, member from September 2014),Ms Ellaine Samson (till August 2014), Ms ElsieBeukes,MsKandaliNuugwedha(tillAugust2014),

MrRudolphKamerikaandMrHeinrichIita.

TheCommittee’smandateistoguideandadvisethe Board of Trustees on investment related policiesandstrategies.

Thespecificresponsibilitiesare:-(a) toactasaninterpretiveandadvisorybody of the Board for investment related policies and strategies(b) toreceivemanagementreportsoninvestments andprovidedirectionbasedontheinvestment policies;(c) tomonitorandevaluatetheimplementationof theinvestmentrelatedpolicies;(d) toobtainandconsiderproposalsoninvestment related matters from external service providers andfrommanagement;(e) toassistmanagementintheformulationand reviewofinvestmentrelatedpolicies;and(f) toreporttoandadvicetheBoardonany investmentrelatedmatter.

1.3.4 Legal, Governance and Compliance CommitteeThe committee consists of four (4) members,oneofwhomisanindependentexternalmemberappointedonthebasisofhis/herexpertiseinlegal,governance and/or regulatory compliance. Themembers of the committee during the reportingperiodwere:MsKandaliNuugwedha(chairpersontill August 2014), Mr Mihe Gaomab II, Ms ElsieBeukes (Chairperson fromSeptember2014),MsMariaDax(fromSeptember2014)andDrSakeusAkweenda(independentexternalmember).

The mandate of the Committee is to guide and advise the Board on legal, governance and compliancematters.

Thespecificresponsibilitiesareto:

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(a) developandregularlyreviewthecorporate governanceframework,whichincludesthe BoardCharter,theBoardcommittees’terms of reference, the code of conduct, the code ofethics,conflictofinterestpolicy,the Board’sperformanceassessmentframework, thetrusteeremunerationpolicy,theBoard’s inductionandtrainingpolicy.(b) considerandrecommendallruleamendments totheBoard;(c) dealwithlegalriskmanagement,litigation and complex contracts and disputes involving theFund;(d) monitorandoverseetheFund’scompliance managementframework. 1.3.5 Remuneration and Human Resources CommitteeThecommitteeconsistsoffive(5)members.Themembers of the committee during the reportingperiod were: Mr. Heinrich Iita (Chairperson tillAugust2014),MsElsieBeukes(tillAugust2014,Mr Rudolph Kamerika, Ms Sarafina Kandere,MrHubertMootseng (tillAugust 2014),Mr I-BenNashandi (from September 2014) andMsMariaDax(ChairpersonfromSeptember2014).

The Committee’s primary mandate is to guideand advise the Board on human capital issues and remuneration of the Trustees, executive managementandotherstaffmembers.

Thespecificresponsibilitiesofthecommitteeare:-(a) toreview,consider,andmakerecommendations on matters pertaining to remuneration of the BoardofTrustees,managementandstaff; and(b) toreview,adviseandmakerecommendations on human capital issues pertaining to training and development, recruitment and selection, industrial relations, organisational

development, strategic planning, succession planning,affirmativeaction,performance management and other human capital issues.

2. OTHER NOTEWORTHY GOVERNANCE MATTERS2.1 Remuneration paid to trustees and executive managementThe GIPF’s remuneration philosophy is foundedonthepremisethat,remunerationlevelsshouldbesufficient to adequately compensate trustees fortheirtimeandeffortdevotedtothebusinessoftheFund.

In terms of the Board Remuneration Policy theremuneration is made up of a combination ofretainerandpermeetingfees.

2.2 Conflicts of InterestsThe Fund has a Conflicts of Interests Policy inplaceandall trusteesandstaffareboundby thepolicy.

The conflicts of interests policy is intended toenablethetrusteesoftheFundtorecogniseanddisclosesituationsofconflictsandensurethatsuchsituationsareappropriatelymanaged,resolvedoravoided.

Trustees are required to disclose their shareholdingsaswellasotherroles(directorships,trusteeships,partnershipsetc.)inbusinessentitiesat leastannuallyand informtheBoardwhenanychangesoccur.

Trustees are also required to inform the Board timeously of conflicts of interest or potentialconflictsofinterestthattheymayhaveinrelationtoparticular itemsofbusinessandareobligedto


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recuse themselves from discussions or decisions inrelationtosuchmatters.

During the reportingperiod, noneof the trusteeshad an interest in contracts or arrangements enteredintobytheFund.

2.3 Corporate Secretary and Governance AdviceTrustees have unlimited access to the Fund’sCorporateSecretary,EscherLuandawhoactsasan advisor on governance and ethical practices within theFund.The secretary is responsible forinductionandon-going traininganddevelopmentof trustees toensure that theysettlewell in theirresponsibilitiesandensuringthattrusteesarekeptabreast of relevant developments in retirementfundgovernance.

2.4 Code of Conduct and EthicsThe Board of Trustees has adopted a code of conduct and ethics to underscore good ethical behaviour.GIPFiscommittedtoahighstandardof integrity in all its dealingswithmembers andotherstakeholders.Itexpectshighstandardsfromits trustees, management and other employeesandrequires themtoconductbusinesshonestlyandinaccordancewithbestpracticestandards.

2.5. Board EvaluationThe Board of Trustees underwent a performance evaluation during the year under review.The exercise was intended to ascertain the effectiveness with which the Board discharges its mandate and matters highlighted in the assessmentaretobeaddressedduringtheyear2015/2016.

2.6 InsuranceAdequate trustee and officers’ liability insurancecovertothetuneofN$40millionwastakenoutby

theFund.Noclaimsundertherelevantpolicywerelodgedduringtheyearunderreview.

2.7. Governance of Stakeholder RelationshipThe Fund recognises that good stakeholdermanagement is an essential feature of sound corporategovernance.TheFundsharespertinentinformation relating to major projects, growth, asset sizeandothermajordevelopmentsatanannualstakeholders’ event as well as through the printand electronic media. The Fund also maintainsregular engagement with key stakeholders,like the Office of the Prime Minister, the PublicService Commission, the investment management community,thePensioners’Association,members,member organisations, organised labour and thegeneralpublicatlarge.

TheFundhostedanAnnualStakeholders’Dinnermeeting during October 2014 where pertinentdevelopments regarding the Fund were shared withmajorstakeholders.

2.8. Internal Control EnvironmentTheBoardhasoverallresponsibilityfortheFund’ssystemof internal control and is accountable forreviewingitseffectiveness.InternalcontrolsystemsaredesignedtomanageriskswithinthebusinessratherthantotallyeliminatethepotentialfailuretoachievetheFund’sobjectives.Inevitably,theycanprovideonlyreasonableandnotabsoluteassuranceagainstmaterialmisstatementor loss.Theboardis extremely conscious of the importance of theFund’ssystemofinternalcontrolsandattachesahighpriority tomonitoring theireffectivenessanddevelopingtheminlinewithbestpractice.

The Board has delegated to executive management the requirement for oversight, establishment andimplementationofappropriatesystemsofinternalcontrol. TheAudit Committee continues, through

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regularreportsbytheInternalAuditfunctionoftheFund,tomonitortheinternalcontrolsystems.

2.9 Risk GovernanceTheFundhasestablishedanenterprise-wideriskmanagementprocess.ExecutivemanagementanddepartmentsareresponsibleforthemanagementofrisksacrosstheFund.

TheriskregistersetsouttheprocessforcapturingallrisksrelevanttotheFund.ExecutiveManagementis responsible for thecollationof this informationandreportingthroughtheAuditCommittee.

Executive management is entrusted to ensure that theEnterpriseRiskManagement process isembeddedatalllevelsandoverseenindependentlyandobjectively,atanappropriatelevel.

The Audit Committee and the Internal Audit Department, keeps under continuous reviewthe adequacy and effectiveness of the Fund’senterprise risk management process and thesystemofinternalcontrol.

When planning their internal audits of the Fund, Internal Audit takes into consideration issuesraisedintheriskregister.

3. TRUSTEE NETWORKING, TRAINING, AND CAPACITY BUILDING ACTIVITIESDuring the year under review, a number of trusteesattendedtraining,networkingandcapacitybuildingevents: 3.1 Infrastructure WorkshopMs Ellaine Samson attended the Government InstitutionsPensionFundInfrastructureWorkshopfrom10to11July2014inMauritius.

3.2 The Future Retirement Funds, Governance and Investments in AfricaMrRudolphKamerikaattendedtheFutureRetirementFunds, Governance and Investments conference in Pretoria,SouthAfricafrom22to24July2014.

3.3 European Investment Fund Investment Forum (EPFIF) SeminarMrHeinrichIitaattendedtheSeminarinLondonfrom08to10September2014inEdinburgh,UnitedKingdom.

3.4 South Africa Pension Fund Investment Forum (SAPFIF) SeminarMsMariaDaxattendedtheSAPFIFSeminarinCapeTown,SouthAfricaon22October2014.


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TrusteeName DateofAppointment AppointingAuthority MeetingsAttended BOT AC BAC IC LGCC RHRCESamson 19August2008 GRN 5 3 4 MGaomabII 10August2011 GRN 14 8 3KNuugwedha 10August2011 GRN 5 3 4 1GMenette 01January2013 PSC 13 3 2HMootseng 01October2010 PSC 14 5 11 3EBeukes 13April2012 PSC 13 1 4 5 2RKamerika 26April2010 NANTU 15 11 4 3 2HIita December2011 NAPWU 14 5 3 6SKandere 28October2010 NAPWU 8 5 5EHoveka 17April2003 Independent 1 SAkweenda 07February2012 Independent 3MDax 19August2014 GRN 5 6 3INashandi 19August2014 GRN 10 4 4 Total 15 6 11 9 4 6

4. ATTENDANCE OF BOARD AND COMMITTEE MEETINGS: 01 APRIL 2014 – 31 MARCH 2015

ABBREVIATIONSGRN - GovernmentoftheRepublicofNamibia

PSC - PublicServiceCommission

NANTU - NamibiaNationalTeachers’Union

NAPWU - NamibiaPublicWorkers’Union

BOT - BoardofTrustees

AC - AuditandRiskCommittee

BAC - BenefitsandAdministrationCommittee

IC - InvestmentCommittee

RHRC - RemunerationandHumanResourcesCommittee

LGCC - Legal,GovernanceandComplianceCommittee


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The GIPF saw its assets grow from N$75.7bnin2014 toN$88.5bnbyendofMarch2015.Thisgrowth represented a 16.9% increase in assetsfor the period under review. Whilst we note thatthe growth in assets for 2015 had been 4% lessthan what we saw in 2014 for the same period, we are satisfied that these are stellar returns whencomparedtootherpeerfundsinthemarket.Also,theGIPFreturnedhalfapercentage(0.677%)overand abovewhat the averageNamibian BalancedManagerUniversehadattained.

BytheendofApril2015,theFundgrewinassetsunder management to N$91.1bn. This stellargrowthwasdrivenlargelybyfavourableeconomicdata out of theUS and sentiments derived fromtalksthatweregoingonbetweentheGreece,theircreditorsandtheEuropeancommunity.Duringthistime we also experienced a sharp depreciation of the local currency, boosting foreign returns, withtheAllShareIndexfallingby2.96%andtheMSCIEmergingMarketindexfallingby3.50%.

Due tomore recent turmoil, looking at the periodending August 2015, the Fund’s assets undermanagement dropped to N$88.8bn. The majorcontributors to the decline in market value wasduetotheimpactonworldmarketsresultingfromthe Chinese growth weakness and USA interestincreases,whichhaveintroducedsignificantmarketvolatility.

ThiscontinuedprospectofaUSinterestratehike,combinedwithaslowdowninChina’seconomyandtheselldownontheirstockexchange,havepushedcommoditypricesdownandsentemergingmarketcurrenciestomulti-yearlowsagainstthedollar.

ManygovernmentsandcompanieshaveborrowedinUSdollars.Inadeflationaryworldwherethedollarkeeps appreciating, the burden of that debt has

CHAIRPERSON’S REPORT

Mr. Mihe Gaomab IIChairperson: Board of Trustees

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risensharply.Theimpactofinterestrateincreaseswillfurtherthatburden.Onthelocalfront,whilstwenotethevolatilityintheequitymarket,especiallyinSA and dual listeds, we do not wish to reduce this physicalexposure.However,thederivativestrategywehaveputinplaceofN$2.5billionhasbeenveryimportanttotheportfoliostrategy.Itaimstoprotectthe fund against markets dropping on a portionof the Fund,wherewe gain on the overlay if themarketfalls.

Offshore, we have recently also seen a sell offin global market, but when combined with thedepreciation of the Namibia dollar, the GIPFoffshore investment have remained rather flatfor the greater part of the year, despite theactual decrease in thosemarkets in USDollars.Geopoliticscontinuestochangethewaywehavetolookatinvestments.

The most recent example is the devaluation of the Chinese currency, which created the potential toexport deflation to other markets, especially theUS and Europe and even so in the developingeconomiesthattrademorewithChina.

Furthermore, the events in the Ukraine, MiddleEast and China, land disputes and potential for war,continuetohighlightaworldwithconsiderableeconomicandpoliticalrisk,andconsequentmarketandcurrencyvolatility.

TheGIPF remainsawell-diversifiedpension fundthat is invested globally, withmarket exposure toNamibiaof36.2%,ZAof28%,Africaat6.53%andInternational at 29.3%. Our strategy remains thatof positioning the Fund better so that it benefitsoptimally from the inefficiencies that exist in themarket.

Fortunately, in the past year we saw the world

continuingitsgradualrecoverydrivenbydevelopedmarketeconomiesaswellasthebiggereconomiesliketheUSandtheUK.FromtheNAMFISAStatisticalReport for Q1 in 2015, we note that the broaderpensionfundindustryhadN$118bnofAssetUnderManagement (AUM) for the same period endingMarch2015–ofthattheGIPFassetsmadeup75%ofthetotalNamibianpensionfundassets.

WearesatisfiedthattheFundremainsinvestedwithintheprescribedlimitsofRegulation28ofthePensionFundsAct.Recentregulatorychangesofnote,whichtheFundcloselymonitors toensurecompliance, isthe gradual scale down of secondary listed stockstobringdownexposure to10%by2018.Currentlyourexposureis23%oftheFund’stotalassetsandin2016wewillbereducingthatto20%.

This decrease will come through new investments in the unlisted space and investing more in the local bondmarket.

Another key consideration to creating a largerinvestment scope for domestic investment is to see moreprimarylistingshappeningontheNSX.Thiswillmakethelocalcountersmoretradableandensureliquidityinthelocalmarket.Toachievethelatter,theGIPFwishestoseemoreprivatecompaniesoptingfor listing as a means to raise new capital and to unlockvalueforcurrentinvestors.

The same holds true for some of the semi-governmental companies which have demonstrated commercialcompetencies.

........................................................Mr.MiheGaomabIIChairman: Board of Trustees


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Mr. David Nuyoma Chief Executive Officer/Principal Officer

Mrs. Maria DaxTrustee

Mr. Mihe Gaomab IIChairperson

BOARD OF TRUSTEES


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Mrs. Maria DaxTrustee

Mr. Heinrich IitaTrustee

Mr. Pontianus MusoreTrustee

Mr. I-Ben NashandiTrustee

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Mr. Goms MenettèTrustee

Ms. Sarafina KandereTrustee

Ms. Elsie BeukesTrustee


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Ms. Elsie BeukesTrustee

Mr. Erastus HovekaSpecialist independent external member: Audit Committee

Dr. Sakeus Akweenda Specialist independent external member: Legal, Governance and Compliance Committee


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IntroductionTheperiodunder review reflected steadygrowthwithassetbasemovingfromN$77.1billiontoN$89billiondespite theunstablemarketconditionsbe-ingexperienced.Therehasalsobeenamarginalincreaseofcontributingmembers from92886 to94397.Certainly,thisincreasehasaninfluenceontheFund’sfinancialbasebuttherealimpactwillbeactuariallydetermined.

Membership and Annuitants TheactivemembershipoftheFundincreasedmar-ginallyby2%duringtheperiodunderreview,asatotalof5515newmemberswereadmittedtotheFund.Atotalof4004exitswererecordedthroughwithdrawals, retirement,deathand retrenchment.Ontheotherhand,atotalof1923annuitantswereaddedduringtheperiodtobringthetotalnumberofannuitantsto58803.ThreenewemployersjoinedtheFund,namelyNewEra;NIPAMandNCHE.

Thegraphicalpresentationofthefund`smembersandannuitantsforthelastsixyearsarepresentedbelow.

Graph: Membership and Annuitants

Annual average increase in active membership and the annuitants were maintained at 2%.

CHIEF EXECUTIVE OFFICER’S REPORT

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ANNUITANTSACTIVE MEMBERS

David NuyomaChief Executive Officer/Principal Officer

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Financial highlight

Contributions received and benefits paid The contributions to the Fund comprised ofemployers`andmembers`contributions.Duringtheperiodunder review,contributions increasedby N$656 million to N$3.258 billion. Thisrepresents an increase of 25% in comparisonto the contribution received during the previousfinancialyear.

The increasewasmainly attributed to the publicservice salary increase and grading relatedadjustments that were awarded to the publicservants.Thebenefitspaymentontheotherhandincreasedby28% in comparison to thepreviousyear’stotalbenefitspaid.

A total of N$2.067 billion was paid in benefitsduringtheyearunderreview,translatingintoatotalincreaseof overN$451million. The increase inbenefitspayments isattributedtomembers’exitsandsalariesadjustments.

Graph: Contributions received and Benefits paid during the last six years.

For the last 6 years, contributions posted an average increase of 19% while benefits payments posted an average increase of 12%.

TheFund`sclaimsratioincreasedby1%toaratioof63%while theadministrativeexpenditureovercontributionsratioremainedconstantat5%.

Theprofitability ratiohereunder reflects the trendforthelast6years.

Graph: Profitability Ratio during the last six years

The Fund’s spending level on benefits was 63% of contributions received while administrative expenses were at 5% for the period under review.

Cost of administration and service levelsThe administration expense as a percentage of pensionable remuneration increased from 1.19%reportedasatMarch2014to1.29%asat31March2015.TheFundadoptedacosttoservelevelof1.50%ofpensionableremunerationasaceilingandheldonto thestrategyonkeepingoperationalexpenditureswithintheadoptedthreshold.

Despite this limitation in terms of resources, theFund continues to innovate on new methods of service delivery. The period under review saw animplementation of benefit payment improvementproject that significantly reduced services backlogsandlessenedturn-aroundtimes.TheFundremainscommittedtoprovidesatisfactorycustomerservicesatalltimes.

Fund SolvencyTheactuariallydeterminedfundingratiofortheperiodending31March2015reflectsanimprovedlevelof108%comparedto103%reportedduringthepreviousvaluation.TheFundisthereforeinahealthyfinancialpositiondepictedbythesolvencylevelandsufficientriskreserveswhichnowamountstoN$23billion.

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CONTRIBUTIONS VS BENEFITS PAID

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1 376 764 000 1 655 283 000 1 926 873 000 2 147 596 000 2 601 080 340 3 257 759 000

1 083 833 000 1 333 878 000 1 254 157 000 1 541 932 000 1 615 391 369 2 066 604 000

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0% 2010 2011 2012 2013 2014 2015

BENEFITS / CONTRIBUTIONS ADMIN. / CONTRIBUTIONS


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These reserves include longevity, employercontribution shortfall, data anomalies and Aidspandemic. The Fund`s Board of Trustees inconsultation with an Actuary shall persistentlymonitorthesolvencyrisktoensurethatappropriateassets are held to match the short and long term liabilitiesoftheFund.

GIPF Accumulated ReservesThe Fund`s reserve increased by more thanN$12.132 billion to reach the Fund Asset valueof N$88.562 billion, a 16% growth in the Fund’sreserves. The growth in the Fund`s reserve isdepicted on the graph here under:

Graph:FundReserves

The liability remained constant during the last 3 years due to the fact that actuarially value for the fund is determined only after three year cycle.

Staff complimentEmployeesplayanimportantroleintheservicingofour mandate and it is essential that the Fund attracts

peoplewith required levelof skillsandexpertise tomovetheFundforward.TheFund’sstaffcomplimentstoodat198employeesduringtheperiodofreview.

This figure excludes a total of 18 employees whoserved the Fund on fixed term contracts. In termsof capacity building we have created an in-houseTreasuryDivision tomanage fixed incomeportfoliooftheFund.MovingforwardtheFundwillestablishthefeasibilityofbringingonboardotherfunctionalitiesbutathoroughcostandbenefitanalysiswouldbeapreconditionforanydecisioninthisregard.

Unveiling of the new corporate identityTheperiodunderreviewmarkedanewbeginningin aligning the Fund’s corporate identity to itsexpandedmandatewithinNamibia’swideeconomiclandscape.GIPFbidfarewelltoitsoldidentitywhichpurelyfocusedonretirementbenefitprovision.

The new logo is modelled on a circle, demonstrating asymbolof longevityandcontinuity. It representsour products, services and directives which come together inoneholisticunity,everyaction feedinginto the next.Weare thereforewelcomingall ourstakeholders to the circle of understanding. Therolloutof thenewbrandhascommencedandwearehappywith the feedback thathasbeenso farreceivedfromourstakeholders.

........................................................................DavidNuyomaChief Executive Officer/Principal Officer

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BILL

IONS

24 Teamwork:We believe that teams achieve more than individuals.We therefore undertake to work together as a team in support of one another in the pursuit of our vision.

Service Excellence:We will strive to deliver the highest quality of service (Right, Fast, and Humane) to all our stakeholders in an innovative, professional, and respectful manner.

Integrity:We will always be honest, fair, transparent, and trustworthy in everything we do.

VALUES

To be a leading pension fund and a model corporate citizen in Namibia.

VISION

To safeguard and grow the Fund for the benefit of its stakeholders and Namibia.

MISSION

Visit www.gipf.com.na


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Mr. David NuyomaChief Executive Officer

Mr. Elvis NashilongoGeneral Manager: Marketing & Corporate Communication

Mr. Conville BritzGeneral Manager: Investments

Mrs. Milka MungundaGeneral Manager: Operations

Mr. Daniel NdaraGeneral Manager: Finance

EXECUTIVE MANAGEMENT

26

Mr. Onno AmutenyaGeneral Manager: MIS

Mr. Ernest LiswanisoGeneral Manager: Human Resources

Mr. Christopher MukubondaManager: Internal Audit

Mr. Melki-zedek UupindiManager: Legal Services

Mr. Escher LuandaManager: Corporate Governance


27

Teamwork:We believe that teams achieve more than individuals.We therefore undertake to work together as a team in support of one another in the pursuit of our vision.

Service Excellence:We will strive to deliver the highest quality of service (Right, Fast, and Humane) to all our stakeholders in an innovative, professional, and respectful manner.

Integrity:We will always be honest, fair, transparent, and trustworthy in everything we do.

VALUES

To be a leading pension fund and a model corporate citizen in Namibia.

VISION

To safeguard and grow the Fund for the benefit of its stakeholders and Namibia.

MISSION

Visit www.gipf.com.na

ANNUAL FINANCIAL STATEMENTS

NAMEOFRETIREMENTFUND: GOVERNMENTINSTITUTIONSPENSIONFUNDNAMFISAREGISTRATIONNUMBER: 25/7/7/67For the period: 01/04/2014 to 31/03/2015

28

REGULATORYINFORMATIONFor the period ended 31 March 2015

Registeredofficeofthefund Postaladdress: POBox23500,WindhoekPhysicaladdress: GIPFHouse,CornerofDrKennethDavidKaunda&GoetheStreet,Windhoek

Financial reporting periods Current: 01/04/2014 to 31/03/2015Previous: 01/04/2013to31/03/2014

Board of trustees

Name AppointingAuthority* Dateappointed Datere-appointed TermendedMrM.GaomabII(Chairperson) E 10/08/2011 19/08/2014 (02/09/2014 appointed as chairperson)MsE.Samson E 19/08/2008 11/08/2011 18/08/2014MrH.Mootseng EE 01/10/2009 01/10/2012MsM.Dax E 19/08/2014 MrI.Nashandi E 19/08/2014 MrR.Kamerika U 26/04/2010 27/04/2013 31/03/2015MsS.Kandere U 28/10/2010 28/10/2013MsK.Nuugwedha E 10/08/2011 09/08/2014MrH.Iita U 23/11/2011 01/07/2012MsE.Beukes EE 12/04/2012 Mr G Menette EE 01/01/2013

*_‘E’denotesappointedbytheGovernmentoftheRepublicofNamibia*_‘EE’denotesappointedbythePublicServiceCommission*_‘U’denotesappointedbyorganisedlabour

Fundofficer PrincipalofficerFullname: MrD.NuyomaPostaladdress: POBox23500,WindhoekPhysicaladdress: 1stFloor,GIPFHouse CornerofDrKennethDavidKaunda&GoetheStreetsTelephonenumber: 061-2051201Emailaddress: [email protected]: 01January2013Termended: N/A


29

REGULATORYINFORMATION–CONTINUEDFor the period ended 31 March 2015

Professionalserviceproviders Actuary/Valuator AuditorsFullname: HumanityEmployeeBenefits(Pty)Ltd PricewaterhouseCoopersPostaladdress: POBox4754,Windhoek POBox1571,WindhoekPhysicaladdress: GroundFloor,MVACentre 334IndependenceAvenue WindhoekTelephonenumber: 061-2051376 061-2841000Qualifications: SocietyofActuariesofNamibia(SAN), RegisteredAccountantsandAuditors ActuarialSocietyofSouthAfrica CharteredAccountants(Namibia) (ASSA),InstituteofActuaries,UK Dateappointed: 01December2004 06February2013

Benefitadministrator InvestmentadvisorsFullname: GovernmentInstitutionsPensionFund RisCuraSolutions(Pty)LtdPostaladdress: POBox23500 POBox27449 Windhoek Windhoek,NamibiaPhysicaladdress: GIPFHouse,CornerofDrKenneth 2ndFloorHeritageSquareBuilding DavidKaunda&GoetheStreets CornerofLindequist&RobertMugabe AvenueTelephonenumber: 061-2051111 061-410350Dateappointed: 01October1989 23October2008Registrationnumber: N/A 1999/010296/07

Investment managers Investment managersFullname: AllanGrayNamibia(Pty)Ltd InvestecAssetManagement(Pty)LtdPostaladdress: POBox230 POBox3018 Windhoek WindhoekPhysicaladdress: 1stFloorHeritageSquareBuilding GroundFloor,HeritageSquare Unit2,CornerLindequist&Robert Building MugabeAvenue CornerLindequist&Robert Windhoek MugabeAvenue WindhoekTelephonenumber: 061-221103 061-389510Dateappointed: 29November1996 10November1998Registrationnumber: 96/212 96/0045

Investmentmanagers *InvestmentmanagersFullname: NamibiaAssetManagement(Pty)Ltd OldMutualAssetManagers(Pty)LtdPostaladdress: POBox23329 POBox165 Windhoek WindhoekPhysicaladdress: 1stFloor,TopPropertiesBuilding 10thFloor,MutualTowerBuilding 24OrbanStreet IndependenceAvenue KleinWindhoek WindhoekTelephonenumber: 061-275700 061-2998000Dateappointed: 18September1996 14October1998Registrationnumber: 97/397 94/463

*OldMutualAssetManagers(Pty)LtdalsoservesasunlistedinvestmentmanagersfortheTungaRealEstateFundandtheExpandedInfrastructureFund.

30


Professionalserviceproviders(continued) Investment managers Investment managersFullname: PrudentialPortfolioManagers(Pty)Ltd MomentumAssetManagement Namibia(Pty)Ltd(previouslyknown asRMBAssetManagement(Pty)LtdPostaladdress: POBox25743 POBox3785 Windhoek WindhoekPhysicaladdress: 6FeldStreet 4th Floor, Millennium Crown Building Windhoek CornerofABMayStreet&Robert MugabeAvenue WindhoekTelephonenumber: 061-256166 061-2998012Dateappointed: 1March2007 1March2007Registrationnumber: 1996/185 2003/781

*Investmentmanagers InvestmentmanagersFullname: SanlamInvestmentManagement(Pty)Ltd SovereignAssetManagement(Pty)LtdPostaladdress: POBox23081 POBox22378 Windhoek WindhoekPhysicaladdress: 4thFloor,SanlamCentre 94NelsonMandelaAvenue 154IndependenceAvenue KleinWindhoek Windhoek WindhoekTelephonenumber: 061-274100 061-220743Dateappointed: 20May1997 08February2001Registrationnumber: 99/107 2000/551

Investment managers Investment managersFullname: WellingtonManagementInternationalLtd MarathonAssetManagementLLPPostaladdress: N/A N/APhysicaladdress: CordinalPlace,80VictoriaStreet OrionHouse LondonW1J8LA 5UpperStreetMartin’sLane UnitedKingdom LondonWC2H9EA,UnitedKingdomTelephonenumber: +44(0)20-7339-8800 +44(0)2074972211Dateappointed: 01July2005 10February2010Dateresigned: 12December2012Registrationnumber: 801-15908 OC305964

Investment managers Investment managersFullname: SouthSuezCapital(Pty)Ltd AllSeasonCapitalManagement(Pty)LtdPostaladdress: N/A N/APhysicaladdress: Suite104,GrandBayBusinessPark GrandBayBusinessPark AirGrandBayRoad AirGrandBayRoad GrandBay GrandBay RepublicofMauritius RepublicofMauritiusTelephonenumber: +2302631491 +2302632082Dateappointed: 15December2009 29June2009Registrationnumber: C10091651 C08074314

*SanlamInvestmentManagement(Pty)LtdalsoservesasunlistedinvestmentmanagersfortheSIMRealEstateFund.


31


Professionalserviceproviders(continued) Investment managers Investment managersFullname: AbaxInvestments(Pty)Ltd StanlibAssetManagement(Pty)LtdPostaladdress: P.O.Box23851,Claremont,2735 POBox3327,WindhoekPhysicaladdress: GroundFloor,CoronationHouse 1stFloor,GutenburgPlaza TheOval,1OakdaleRoad 51-55WernerListStreet Newlands,CapeTown Windhoek RepublicofSouthAfricaTelephonenumber: 0027216708960 061-2942273Dateappointed: 04March2010 01September2008Registrationnumber: 2000/008606/07 162/68

Investment managers Investment managersFullname: MaziCapital(Pty)Ltd Tri-AlphaInvestmentManagement(Pty)LtdPostaladdress: POBox784583, PrivateBagX5061, Sandton,2146 Stellenbosch,RSA7599Physicaladdress: ThePlace,1SandtonDrive GroundFloor,BlockA,7WestQuary GroundFloor,SouthWing WestQuaryRoad,VictoriaandAlfred Sandton2146,Johannesburg,RSA Waterfront,CapeTown,8001,RSATelephonenumber: +27112458909 +27214250221Dateappointed: 05March2010 20April2010Registrationnumber: 2006/006855/07 2006/008726/07

Investment managers Investment managersFullname: ElementInvestmentManagers(Pty)Ltd TaquantaAssetManagers(Pty)LtdPostaladdress: POBox13,CapeTown POBox23540,Claremont 8001 RSA,7735Physicaladdress: 25th Floor 7thFloor,NewlandsTerraces,8 Attenbury1RiebeckStreet BoundaryRoad CapeTown,RSA Newlands,CapeTown,RSATelephonenumber: +27214260999 +27216815199Dateappointed: 05March2010 26June2010Registrationnumber: 1998/006727/07 1999/021871/07N/A

Investment managers Investment managersFullname: MezzeninePartners(Actinginits PrudentialPortfolioManagers capacityasageneralpartnerofCredit (Namibia)(Pty)Ltd(Actinginthe Partners1,LP) capacityasCo-ManagerofEpisode Inc)Postaladdress: POBox202MelroseArch POBox25743 Johannesburg,RSA,2076 WindhoekPhysicaladdress: StanlibBuilding,3rdFloor, 6FeldStreet 17MelroseBoulevard,MelroseArch, RepublicofNamibia Johannesburg,RSA,2196Telephonenumber: +27115071080 +26461256166Dateappointed: 01April2010 12April2010Registrationnumber: 2009/008324/07 96/185

32


Professionalserviceproviders(continued) Investment managers Investment managersFullname: ABSACapitalAlternativeAsset BlackRockInvestmentManagers(UK)Ltd Management(Pty)Ltd Postaladdress: N/A N/A

Physicaladdress: 163UysKrigeDrive 12ThrogmortonAvenue Plattekloof EC2N2DL CapeTown London 7500 UnitedKingdom RSATelephonenumber: +27219276403 +44(2)2077433000Dateappointed: 06March2013 01February2013Registrationnumber: 1999/027973/07 2020394 Unlistedinvestmentmanagers UnlistedinvestmentmanagersFullname: IJGPrivateEquity(Pty)Ltd(intheir KongalendFinancialServices(Pty)Ltd capacityasFundManagersforthe (intheircapacityasFundManagersfor DesertStoneFund) theKongalendRenewableEnergy Trust)Postaladdress: POBox186 POBox40303 Windhoek WindhoekPhysicaladdress: 1stFloor,HeritageSquareBuilding CornerHaddyandViljoenStreet 100RobertMugabeAvenue WindhoekWest Windhoek Windhoek RepublicofNamibia RepublicofNamibiaTelephonenumber: +26461383500 +26461241440Dateappointed: 11May2010 05May2010Registrationnumber: T183/10 T184/10

Unlistedinvestmentmanagers UnlistedinvestmentmanagersFullname: BusinessFinancialSolutions(BFS)(in VenturePartnersBotswana(VPB) theircapacityasFundManagersforthe Namibia(Pty)Ltd(intheircapacityas NamibiaProcurementFund) FundManagersfortheVPBGrowth Fund)Postaladdress: POBox5064 POBox40847 Windhoek WindhoekPhysicaladdress: 7NewtonStreet 7ViljoenStreet Ausspannplatz NVACentre,WindWest Windhoek Windhoek RepublicofNamibia RepublicofNamibiaTelephonenumber: +26461388600 +26461220069Dateappointed: 14April2010 11May2010Registrationnumber: T172/10 T185/10


33


Professionalserviceproviders(continued) Unlistedinvestmentmanagers UnlistedinvestmentmanagersFullname: SaflandPropertyServicesNamibia(in KönigsteinCapital(Pty)Ltd(intheir theircapacityasFundManagerofthe capacityasFundManagersforthe FrontierPropertyTrust) KönigsteinCapitalPropertyInvestment Fund)Postaladdress: POBox97438 POBox86127 Windhoek WindhoekPhysicaladdress: 2BarrotStreet,WesternSquare Unit7–TheVillageEros, Windhoek 18LillencronStreet,Windhoek RepublicofNamibia RepublicofNamibiaTelephonenumber: +26461225274 +26461303227Dateappointed: 12May2011 11May2010Registrationnumber: 2008/0798 T244/11

Unlistedinvestmentmanagers UnlistedinvestmentmanagerFullname: PreferredManagementServices(Pty) FirstCapitalTreasurySolutions(Pty) Ltd(intheircapacityasFundManager Ltd(intheircapacityasFundManagers ofthePreferredInvestmentProperty fortheFirstCapitalRealEstateFinance Fund) Fund)Postaladdress: POBox26710 POBox4461 Windhoek WindhoekPhysicaladdress: BougianVillaComplex 5BeethovenandStraussStreet 78SamNuyomaDrive, WindhoekWest KleinWindhoek,Windhoek Windhoek RepublicofNamibia RepublicofNamibiaTelephonenumber: +26461248318 +26461401326Dateappointed: 16August2011 29September2011Registrationnumber: T245/11 1995/011585/07 Investment managers Transition managers Fullname: VisioCapitalManagement(Pty)Ltd RMBMorganStanley(Pty)Ltd

Postaladdress: N/A POBox25743 WindhoekPhysicaladdress: ThePlace,1SandtonDrive, 1Merchantplace,CornerFremanDrive GroundFloor,SouthWing, andRivoniaRoad,Sandton,2196 Sandton, 2146 RepublicofSouthAfrica RepublicofSouthAfrica

Telephonenumber: +27219276403 +27112828630Dateappointed: 10March2015 29October2012Registrationnumber: 2003/01/83/65/07 1995/011585/07

34


Professionalserviceproviders(continued) Custodian and nominees Custodian and nominees Fullname: StandardBankNamibia(Pty)Ltd StateStreetSouthernAfrica(Pty)LtdPostaladdress: POBox3327 POBox1134 Windhoek CapeTown,RSA,8000Physicaladdress: 2ndFloor,StandardBankCentre LiesbeekHouse TownSquare RiverParkGloucesterRoad, Windhoek Mowbray,CapeTown,RSATelephonenumber: 061-2942602 +27216812102NAMFISAapprovalno: 78/01314/07 N/ADateappointed: 16April1997 01July2005

Riskinsurers InvestmentaccountingservicesFullname: TheHollardInsuranceCompanyof RisCuraSolutions(Pty)Ltd NamibiaLtdPostaladdress: POBox5077 POBox27449 Ausspannplatz Windhoek,Namibia WindhoekPhysicaladdress: JanJonkerCommercialSuite 2ndFloor,HeritageSquareBuilding CornerofJanJonkerandThorerStreet CornerofLindequist&RobertMugabe Windhoek Avenue WindhoekTelephonenumber: 061-371300 061-410350NAMFISAapprovalno: 08/LT/19 N/ADateappointed: 18December2006 01January2009

Participatingemployers

ThefollowingemployersparticipatedintheFundintermsoftherulesoftheFundduringtheyearunderreview:

NameEnvironmentalInvestmentFundofNamibia AgriBusDevOffices,MinistriesandAgenciesoftheGovernmentoftheRepublicofNamibia BersebaVillageCouncilMillenniumChallengeAccount GibeonVillageCouncilMissionHospitals GochasVillageCouncilNamibiaInstituteofPathology KalkrandVillageCouncilNamibiaStudentFinancialAssistanceFund(NSFAF) KoësVillageCouncilNamibiaTourismBoard NamibiaStatisticsAgency(NSA)NamibiaWildlifeResortsLimited NationalHeritageCouncilNamibianInstituteofPublicAdministrationandManagement NewEraCorporationNationalCouncilforHigherEducation(NCHE) RegionalCouncilsRoadsContractorCompanyLimited TsesVillageCouncilStampriet Village Council Tungeni Africa InvestmentsSocialSecurityCommission WitvleiVillageCouncilTrustFundforRegionalDevelopment&EquityProvisions


35

STATEMENTOFRESPONSIBILITYBYTHEBOARDOFTRUSTEESFortheyearperiod31March2015

Responsibilities

TheBoardofTrusteesherebyconfirmto thebestof theirknowledgeandbelief that,during theperiodunderreview, in theexecutionoftheirdutiestheyhavecompliedwiththedutiesimposedbyPensionFundsAct,1956(ActNo.24of1956)(“hereafterreferredtoasPensionFundsAct)andotherrelevantlegislationaswellastherulesofthefund,includingthefollowing: • ensuredthatproperregisters,booksandrecordsoftheoperationsoftheFundwerekept,inclusiveofproperminutesofall resolutionspassedbytheboardoftrustees; • ensuredthatproperinternalcontrolsystemswereemployedbyoronbehalfoftheFund; • ensuredthatadequateandappropriateinformationwascommunicatedtothemembersoftheFund,informingthemoftheir rights,benefitsanddutiesintermsoftherulesoftheFund; • tookallreasonablestepstoensurethatcontributions,whereapplicable,werepaidtimeouslytotheFundorreportedwhere necessaryinaccordancewithSection13AofthePensionFundsActinNamibia; • obtainedexpertadviceonmatterswheretheylackedsufficientexpertise; • ensuredthattherulesandtheoperationandadministrationoftheFundcompliedwiththePensionFundsActinNamibiaand allotherapplicablelaws; • ensuredthatfidelitycoverwasmaintained.ThiscoverwasdeemedadequateandincompliancewiththerulesoftheFund;and • ensuredthatinvestmentsofthefundwereimplementedandmaintainedinaccordancewiththeFund’sinvestmentstrategy.

Approvaloftheannualfinancialstatements

TheannualfinancialstatementsoftheGovernmentInstitutionsPensionFundaretheresponsibilityoftheBoardofTrustees.TheBoardofTrusteesfulfilsthisresponsibilitybyensuringtheimplementationandmaintenanceofaccountingsystemsandpracticesadequatelysupportedbyinternalfinancialcontrols.Thesecontrols,whichareimplementedandexecutedbythefundand/oritsbenefitadministrators,providereasonableassurancethat: • theFund’sassetsaresafeguarded; • transactionsareproperlyauthorisedandexecuted;and • thefinancialrecordsarereliable.

Theannualfinancialstatementssetoutonpages12to31havebeenpreparedforregulatorypurposesinaccordancewith: • thebasisofaccountingappliedtoretirementfundsinNamibia; • therulesoftheFund;and • theprovisionsofthePensionFundsActinNamibia.

Thesefinancial statementshavebeen reportedonby the independentauditors,PricewaterhouseCoopers,whoweregivenunrestrictedaccesstoallfinancialrecordsandrelateddata,includingminutesofallrelevantmeetings.TheBoardofTrusteesbelievesthatallrepresentationsmadetotheindependentauditorsduringtheirauditwerevalidandappropriate.Thereportoftheindependentauditorsispresentedonpages10to11.

Thesefinancialstatementswereapprovedbytheboardoftrusteeson24thSeptember2015andaresignedontheBoardofTrustees’behalfby:

MrM.GaomabII Mr.INashandi Mr.HIitaCHAIRPERSONOFTHE CHAIRPERSONOFTHE CHAIRPERSONOFTHEBOARDBOARDOFTRUSTEES BOARDAUDITCOMMITTEE BENEFITSANDADMINISTRATIONCOMMITTEE24September2015 24September2015 24September2015

36

STATEMENTOFRESPONSIBILITYBYTHEPRINCIPALOFFICERFor the period ended 31 March 2015

Iconfirmthat,fortheperiodunderreview,theGovernmentInstitutionsPensionFundhastimeouslysubmittedallregulatoryandotherreturns,statements,documentsandanyotherinformationasrequiredintermsofthePensionFundsActinNamibia.

........................................................MrD.NuyomaPRINCIPALOFFICER24September2015Windhoek


37

INDEPENDENTAUDITOR’SREPORTTOTHEMEMBERSOFTHEGOVERNMENTINSTITUTIONSPENSIONFUND

Reportonannualfinancialstatements

WehaveauditedtheannualfinancialstatementsoftheGovernmentInstitutionsPensionFundwhichcomprisesofthereportoftheboardoftrustees,andthestatementofassets,liabilitiesandfundsasat31March2015,andthestatementofchangesinnetassetsandfundsfortheyearthenended,andthenotestothefinancialstatements,whichincludetheprincipalaccountingpoliciesandotherexplanatorynotes,assetoutonpages12to31.

BoardofTrustees’ResponsibilityfortheFinancialStatements

Thetrusteesareresponsibleforthepreparationandpresentationofthesefinancialstatementsforregulatorypurposes,inaccordancewiththebasisofpreparationapplicabletoretirementfundsinNamibia,assetout inthenotestothefinancialstatements,andforsuchinternalcontrolasthetrusteesdetermineisnecessarytoenablethepreparationandpresentationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.

Auditor’sResponsibility

Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewithInternationalStandardsonAuditing.Thosestandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatements.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsiders internalcontrolrelevanttotheentity’spreparationandpresentationof thefinancialstatements inordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessof theentity’s internalcontrol.Anauditalso includesevaluatingtheappropriatenessofaccountingpoliciesusedand thereasonablenessofaccountingestimatesmadeby theentity,aswellasevaluating theoverallpresentationofthefinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

Opinion

InouropinionthefinancialstatementsoftheGovernmentInstitutionsPensionFundfortheyearended31March2015,havebeenprepared,inallmaterialrespects,inaccordancewiththebasisofpreparationapplicabletoretirementfundsinNamibiaassetoutinthenotestothefinancialstatements.

38

INDEPENDENTAUDITOR’SREPORT–CONTINUEDTOTHEMEMBERSOFTHEGOVERNMENTINSTITUTIONSPENSIONFUND

OtherMatter–ReportonOtherLegalandRegulatoryRequirements

Wedonotexpressanopiniononthefinancialconditionofthefundfromanactuarialpointofview.

Othermatter-Restrictiononuse

Thefinancialstatementsarepreparedforregulatorypurposesinaccordancewiththebasisofpreparationindicatedabove.Consequently,thefinancialstatementsandrelatedauditorreportmaynotbesuitableforanotherpurpose.

PricewaterhouseCoopersRegisteredAccountantsandAuditorsCharteredAccountants(Namibia)PerLouisvanderRietPartnerWindhoek

29September2015


39

REPORTOFTHEBOARDOFTRUSTEESFor the period ended 31 March 2015

1. DESCRIPTIONOFTHEFUND

1.1. Typeoffund:IntermsofSection1oftheIncomeTaxAct(Act24of1981),asamendedtheFundisclassifiedasapensionfund.TheFundisadefinedbenefitfund.

1.2. Benefits 1.2.1. TheFundprovidesforthefollowingbenefitstoitsmembers:

1.2.1.1. Deathbenefit Aonceofflumpsumamount,aswellasmonthlypensions,arepaidtothesurvivingspouseandchildrenofa memberwhodiesinservice.Amonthlypensionispaidtothesurvivingspouseonthedeathofaretiredmember.

1.2.1.2. Normalretirement Amemberreceivesamonthlypensionuponattainingtheageof60,commencingonthefirstdayofthe monthfollowingretirement,calculatedas2.4%ofthemember’sfinalsalary,multipliedbythemember’sterm ofpensionableservice.

1.2.1.3. Earlyageretirement Earlyageretirementispermissible,withtheconsentoftheemployer,uponorafterthememberattainsthe ageof55yearsbutbeforetheageof60years.Thepension,ascalculatedatthenormalretirementageof 60years,isreducedby0.25%foreverymonthbywhichmember’spensionableserviceisterminatedpriorto his/hernormalretirementageof60years.

1.2.1.4. Earlyill-healthretirement Amemberwhoisonprotractedill-healthleavemayretireatanytimepriortohis/hernormalretirementdate. Suchill-healthearlyretirementpensioniscalculatedas2.4%ofthemember’sfinalsalary,multipliedbythe member’stermofpensionableservice.Aonceofflumpsumisalsopayableonearlyillhealthretirement.

1.2.1.5. Disabilitypension Amembermayqualifyforadisabilitypension,ifthememberbecomestotallyandpermanentlydisabled whileinservice.Thedisabilitypensioniscalculatedas75%ofthemember’spensionableemolumentsandis payableuntilthemember’snormalretirementage,whereafterthememberretiresintermsoftherulesoftheFund.

1.2.1.6. Funeralbenefit Afuneralbenefitispaidupondeathofthemainmember,spouseandqualifyingchildasfollows: • Activememberandspouse:N$8,000 • Retiredmember:N$8,000 • Qualifyingchildaged1yearorolder:N$3,000 • Qualifyingchildundertheageof1yearorstillborn:N$1,000.

1.2.2.StrategyofBoardofTrusteestowardsunclaimedbenefits.Ifabenefitremainsunclaimedforthreeyearsafterthedateitbecomespayable, itshallreverttotheFund,andsuchbeneficiaryshallhavenofurtherclaimagainsttheFund.HowevertheTrusteesshallhavethediscretiontopayoutsuchbenefitaftertheexpirationofthethreeyearperiod.Unclaimedbenefits/rejectionsrepresentsclaimsthatwereprocessedforpayment,butwererejectedbythebankforreasonssuchasbeneficiary’saccountclosed,accountin-activeetc.

1.2.3.Inrespectofunclaimedbenefits,completerecords,asprescribed,aremaintainedasfromthedateofinception 01stOctober1989.

40

REPORTOFTHEBOARDOFTRUSTEES–CONTINUEDFor the period ended 31 March 2015

1. DESCRIPTIONOFTHEFUND(Continued)

1.3. Contributions 1.3.1. DescriptionintermsoftherulesoftheFund.

1.3.1.1. Members’contributions. Memberscontributeeachmonthatarateof7%ofpensionablesalary.

1.3.1.2. Employers’contributions. Participatingemployerscontributeatarateof16%ofpensionablesalary.1.4. ReservesTherulesoftheFundmakenoprovisionforspecificreserves.However,intermsoftheStatutoryActuarialValuationforthefinancialyearended31March2012,thefollowingreserveaccountshavebeencreatedandarerevisedevery3years.

2015 2014 2012 2009 2006 2003 N$`000 N$`000 N$`000 N$`000 N$‘000 N$‘000Memberliabilities Activemembers 24,781,191 24,781,191 24,781,191 13,666,532 13,790,336 7,453,505Pensioners 8,194,547 8,194,547 8,194,547 5,586,819 3,314,848 1,979,794Disabledmembers 252,629 252,629 252,629 173,540 261,279 197,540Riskreserves Aids 1,734,683 1,734,683 1,734,683 1,093,323 1,103,227 1,228,709Data 1,239,060 1,239,060 1,239,060 971,345 868,323 754,585Longevity 3,932,857 3,932,857 3,932,857 2,914,034 - -Employercontribution 5,704,704 5,704,704 5,704,704 3,874,680 - -Actuarialreserves 1,721,203 1,721,203 1,721,203 1,660,576 2,292,119 1,286,978Un-allocatedreserves 41,816,322 29,544,320 2,617,231 - 4,450,469 (1,742,477)Accumulatedfunds 89,377,196 77,105,194 50,178,105 29,940,849 26,080,601 11,158,634

2. INVESTMENTS

2.1. Investmentstrategy TheBoardofTrusteeshaveformulatedaninvestmentstrategywherebytheinvestmentsaremanagedaccording tothefollowingprinciples.ThisinvestmentstrategycomplieswiththeprovisionsofRegulation28ofthePension FundsActinNamibia:

2.1.1. Theinvestmentreturnsrequiredtoensurefinancialsustainabilityhavebeendefinedandtheactualreal netrateofreturnearnedontheassetsoftheFundismeasuredagainstthesetargets. 2.1.2. Theassetsclassallocationsandweightingperassetclassofthepensionfundassetsmatchthetime profilesoftheFund’sliabilities. 2.1.3. TheFund’sassetsaredistributedgeographicallyandinvariousdiversifiedassetclasses. 2.1.4. TherisktoleranceoftheFundisdefinedasbeinggenerallylowandanumberofprudentiallimitshave beendefined.


41


2. INVESTMENTS–(Continued)

2.2 UnlistedinvestmentsAs at 31 March 2015, the following unlisted Fund Managers or Asset Managers had made capital drawdowns for investment purposes: a)TheNamibianProcurementTrust(“NamPro”); b)KongalendRenewableEnergyTrustFund(“Kongalend”); c)FrontierPropertyFund(“Frontier”); d)DesertStoneFund(“DSF”); e)VenturePartnersBotswanaGrowthFund(“VPB”); f) TheTungaRealEstateFund(“OMIGNAMTunga”); g)ExpandedInfrastructureFund(“OMIGNAMInfrastructure”); h)FirstCapitalRealEstateFinanceFund(“FCREFF”); i) KonigsteinCapitalInvestmentPropertyFund(“KCIPF”);and j) PreferredInvestmentPropertyFund(“PIPF”).

NamProisengagedinprovidingshort-termworkingcapitalfacilitiesandmedium-termassetbackedfinancing(FinanceandOperatingleases)toSME’sawardedtenders/supplyand/orservicecontractsbyreputablelargecorporate,governmentdepartments,parastatalsorlocalauthorities.Asat31March2015,ithadwrittenanumberofperformanceguaranteesandprovidedfacilitiestoanumberofSME’s.

Kongalendwasfoundedwiththemainpurposeofengaginginrenewableenergyandsmall&mediumenterprises’creditfinancing.Asat31March2015,ithadprovidedloanstoanumberofSME’s.

TheFrontierPropertyFundhasabuy-and-holdmandatewiththeFundwithspecificfocusoninvestinginthedifferentregionswithinthebordersoftheRepublicofNamibia.TheinvestmentcharterallowstheFrontierFundtoinvestinretail,office,commercialandindustrialbuildingswiththeobjectiveofearninginvestmentreturnsinexcessofapre-determinedhurdlerate.Asat31March2015,thefundhadmadeinvestmentsintoseveralretailandofficeopportunitiesinWindhoek,Otjiwarongo,OndangwaandKatimaMulilo.

DSFisaprivateequitytrustthatismandatedtoinvestinearlystageventurecapital,greenfieldprojects,developmentcapital,andbuyoutinvestments.Asat31March2015,ithadmadeaninvestmentinaMobilePaymentSolutionCompanyandEngineeringCompany.

VPBisaprivateequitytrustthatismandatedtoinvestinearlystageventurecapital,greenfieldprojects,developmentcapital,buyoutinvestments.Asat31March2015,ithadmadeaninvestmentinaMedicalServiceCentre.

OMIGNAMTungaisaRealEstateInvestmenttrust(REIT)withtheobjectiveofbuildingadominantNamibiaPropertyfund.Asat31March2015,ithadmadeadrawdownforinvestmentsinshoppingcentreinthetownsofArandis,RehobothandGrootfontein.

OMIGNAMInfrastructuretargetsinfrastructuralprojectsliketollroads,railwaysandancillaryservices,bulkpowersupply,powerdistributions,telecommunications,bulkwatersupply,waterandwastewatertreatmentandreticulation,privatisation,educationandhealthcareetc.Asat31March2015,ithadprovidedfundingforinfrastructuralservicestotheSwakopmundMunicipalities.

FCREFFisatrustsetuptoprovidefundingforlocalauthoritiesanddevelopanactiveinsuranceofmortgagebackedsecurities.Asat31March2015,ithadprovidedfundingforOutapiTownCouncil.

KCIPFisatrustsetuptoprovidefundingforidentificationandadjudicationofpropertyinvestmentsopportunityfortheFundonwholesalecapacitywhichentailsinvestmentindevelopmentprojectsthatgenerateacceptablelongtermreturns.Asat31March2015,thetrustshadinvestedinseveraldevelopmentprojectsacrossthecountry,withmajorweightingtowardWindhoek.

PIPFisatrustsetuptoprovidefundingforidentificationandadjudicationofpropertyinvestmentsopportunityfortheFundonwholesalecapacitywhichentailsinvestmentindevelopmentprojectsthatgenerateacceptablelongtermreturns.Asat31March2015,thetrustshadinvestedinseveraldevelopmentprojects(residential,warehousing&officespace)acrossthecountry,withmajorweightingtowardWindhoek.

Refertonote14investmentcommentsoftheannualfinancialstatementsforfurtherdetails.

42


2. INVESTMENTS–(Continued)

2.3 ManagementofinvestmentsTheFund’sinvestmentsconsistofguaranteedportfoliosandmanagedportfoliosplacedwithinvestmentmanagers,aswellasdirectinvestmentsinunlistedNamibiancompanies,asdetailedbelow.Theinvestmentmanagershavefulldiscretionastothecompositionoftheassetsintheportfolioundertheirmanagement,withintheboundariesallowedbythePensionFundsActinNamibia.TheBoardofTrusteesmeetatquarterlyintervalstodiscussinvestmentpolicyandtomonitortheassetallocationandperformanceoftheinvestmentmanagersagainsttheinvestmentstrategyoftheFund.Theinvestmentmanagersareremuneratedonapercentagebasisbasedonmarketvaluesandarepaidquarterly.

ThefairvalueoftheFund’sinvestmentsadministeredbytheinvestmentmanagersattheendoftheperiodis:

31/3/2015 31/3/2014 N$‘000 N$‘000AbaxInvestments(Pty)Ltd 3,351,637 2,678,285ABSACapital(AlternativeAssetManagement(Pty)Ltd) 11,470 (271,417)*AllanGrayNamibia(Pty)Ltd 3,853,951 3,257,061AllSeasonCapitalManagement(Pty)Ltd 2,185,059 2,582,617BFSNamproFundManagers(Pty)Ltd 156,957 155,385BlackRockInvestmentManagement(UK)Ltd 8,733,866 9,341,667CreditPartners(Pty)Ltd(MezzeninePartners) 227,877 213,439FirstCapital(Pty)Ltd 374,223 9,901IJGPrivateEquity(Pty)Ltd 60,578 75,877InvestecAssetManagement(Pty)Ltd 12,338,647 11,403,332KongalendFinancialServices(Pty)Ltd 77,089 81,097KönigsteinCapital(Pty)Ltd 142,226 38,281MaziCapital(Pty)Ltd 817,426 439,836MomentumAssetManagementNamibia(Pty)Ltd 3,348,400 2,938,280NamibiaAssetManagement(Pty)Ltd 13,836,425 11,522,236OldMutualAssetManagement(Pty)Ltd 10,224,930 8,540,101PreferredManagementServices(Pty)Ltd 245,825 108,527PrudentialPortfolioManagers(Pty)Ltd 2,503,247 2,117,974SaflandPropertyServices(Pty)Ltd 244,468 241,906SanlamInvestmentManagement(Pty)Ltd 8,962,543 7,437,727SouthSuezCapital(Pty)Ltd 1,446,083 999,916SovereignAssetManagement(Pty)Ltd 1,952,197 1,648,884TaquantaAssetManagers(Pty)Ltd 537,212 402,003RMBMorganStanley(Pty)Ltd 539 518TriAlphaInvestmentManagement(Pty)Ltd 1,210,032 1,088,447VisioCapitalManagement(Pty)Ltd 2,279,492 1,745,431VPBNamibia(Pty)Ltd 44,811 32,290WellingtonManagementInternationalLLP 9,493,260 7,729,316 Totalinvestmentsmanagedbyinvestmentmanagers 88,660,471 76,558,917 GIPFDirectInvestments 158,308 39,866 TotalInvestments 88,818,779 76,598,783

*TheFund’slossonderivativesexposure(hedges).


43


3. MEMBERSHIP Active Deferred Pensioners Unclaimed members pensioners benefitsNumbersatbeginningofperiod 92,886 30,402 27,005Adjustments(*) Additions Transfersin 5,515 1,923378Transfersout (344)Withdrawals (1,357) Retirements (1,884) Deaths (746) Retrenchments (17) Transfers(from)/todeferredpensioners (561)

Numbersatendofperiod 94,397 31,764 27,039

Themajorityofthemembersshownas‘transferredin’relatestonewemployeesofparticipatingemployerswhojoinedthefundduringtheperiod.

4. ACTUARIALVALUATION

ThefinancialstatementssummarisethetransactionsandnetassetsoftheFund.Inaccordancewiththerulesofthefund,theactuarialpositionofthefund,whichdoestakeaccountofsuchliabilities,isexaminedandreportedonbytheactuaryatintervalsnotexceedingthreeyears.

Avaluationwasperformedasat 31March2012and thevaluator reported that theFundwas ina soundfinancialposition,andthatthepresentratesofcontributionsareadequatetoenablethefundtoprovidethebenefitstowhichmembersareentitled.

Thevaluationasat31March2015isintheprocessofbeingperformedand,asaresult,thefinancialstatementsasat31March2015donotreflectanyactuarialadjustmentsthatmaybedeemednecessary.

5. INVESTMENTINPARTICIPATINGEMPLOYERS

TheFundholdsnoinvestmentsinparticipatingemployers.

6. FIDELITYCOVER

DuringtheyearfidelitycoverwasmaintainedincompliancewiththeRulesoftheFund.

7. HOUSINGLOANFACILITIES

TheFundcurrentlydoesnothaveanyhousingloanfacilitiesorguaranteesgrantedintermsofSection19(5)ofthePensionFundAct.

8. AMENDMENTTOREGULATION28ANDTHEIMPACTTHEREOF

AmendmentstothePensionFundsAct

TheGovernmentoftheRepublicofNamibiagazettedamendmentstoRegulation26,Regulation27,Regulation28andRegulation29on31December2013,effective1January2014.TheseamendmentshaveanimpactontheFundinthecurrentfinancialyearandarebrieflysummarisedbelow:

Regulation26

Prescribesadministrativepenalties:-forfailuretofurnishareturn;-ortransmitordepositascheme,reportaccount,statement,otherdocumentorinformation;-andcontraventionorfailuretocomplywithanyprovisionofRegulation28.

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8. AMENDMENTTOREGULATION28ANDTHEIMPACTTHEREOF–(Continued)

Regulation27

PrescribesinterestratestobeappliedfordirecthousingloansgrantedintermsofSection19(5)(b)(iii).

Regulation28

Prescribeslimitsrelatingtoassetsinwhichregisteredfundsmayinvest.

Regulation29

Prescribesguidelinesforinvestmentofpensionfundassetsinunlistedinvestments.

OneoftherequirementsofRegulation29isthatfundsarerequiredtoinvestaminimumof1.75%andamaximumof3.5%ofitstotalinvestmentsinunlistedsharesasat31December2014.TheFundhasappliedforextensionforthisrequirement.NAMFISAhasgrantedextensionuntil30September2015,intermsofRegulation28(10).

9. SUBSEQUENTEVENTS

Noeventshaveoccurredbetween31March2015andthedateofthisreportwhichareofsuchsignificancethattheyshouldbedealtwithinthereport.


45

STATEMENTSOFNETASSETSANDFUNDSAt 31 March 2015

Notes 2015 2014 N$’000 N$’000ASSETS Non-currentassets 88,894,953 76,672,924Property,plantandequipment 1 76,174 74,141Investments 2 88,818,779 76,598,783 Current assets 482,243 432,270Accountsreceivable 3 15,477 13,067Contributionsreceivable 7 310,344 219,264Cashatbank 156,422 199,939 Totalassets 89,377,196 77,105,194 FUNDSANDLIABILITIES Funds Accumulatedfunds 88,562,349 76,430,531Totalfunds 88,562,349 76,430,531

Non-currentliabilities 310,658 273,358Benefitspayable 5 278,957 242,603Unclaimedbenefits/Rejections 6 31,701 30,755 Currentliabilities 504,189 401,305Benefitspayable 5 398,065 313,280Accountspayable 4 106,124 88,025 Totalfundsandliabilities 89,377,196 77,105,194

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STATEMENTSOFCHANGESINNETASSETSANDFUNDSFor the period ended 31 March 2015

Notes 2015 2014 N$’000 N$‘000 Contributionsreceivedandaccrued 7 3,257,759 2,601,407Netinvestmentincome 8 11,081,747 13,091,061Otherincome 9 16,594 13,195Less: Administration/operatingexpenses 10 (157,678) (139,639)

Netincomebeforetransfersandbenefits 14,198,422 15,566,024 Transfersandbenefits (2,066,604) (1,615,391)Benefitspaid 5 (2,066,604) (1,615,391) Netincomeaftertransfersandbenefits 12,131,818 13,950,633

Funds and reserves Balanceatbeginningofyear 76,430,531 62,479,898 Balanceatendofyear 88,562,349 76,430,531


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NOTESTOTHEANNUALFINANCIALSTATEMENTSFor the period ended 31 March 2015

PRINCIPALACCOUNTINGPOLICIES–(Continued)

Basis of preparation

ThefinancialstatementsarepreparedforregulatorypurposesinaccordancewiththeRegulationsofthePensionFundsActinNamibia.Theregulationsrequirethatthebasisofaccountingappliedbythepensionfundscomprisegenerallyacceptedaccountingpractice,asappliedtoretirementfundsinNamibia,exceptfor:

• therecognition,measurementanddisclosureofactuarialliabilities;• disclosureofcashflowinformation;• disclosureofprioryearadjustments;• presentationofconsolidatedfinancialstatementsinwhichinvestmentsinsubsidiaryisconsolidatedinaccordancewiththe standardonconsolidatedandseparatefinancialstatements;and• disclosureofquantitativeriskdisclosuresasrequiredbyIFRS7.

Thefinancialstatementsarepreparedonthehistoricalcostandgoingconcernbasisexceptforitemscarriedatfairvalueassetoutintheaccountingpolicesbelow.Thefinancialstatementsaremeasuredandpresentedinthefunctionalcurrency.

PrincipalAccountingPolicies

The following are the principal accounting policies adopted and applied consistently for similar transactions, other events andcircumstancesforthereportingperiod,andareconsistentinallmaterialrespectswiththoseappliedinthepreviousreportingperiod,bytheFund,exceptasotherwiseindicated.

Asset impairments

Assetimpairmenttestsareappliedannuallytocashgeneratingunitsandindividualassetswhosemeasurementbasisishistoriccostorhistoriccostasadjustedforrevaluations.Animpairmentlossisrecognisedwhenanasset’scarryingvalueexceedsitsrecoverableamount.Impairmentlossesareinitiallyadjustedagainstanyapplicablerevaluationreservethenexpensedintheprofitandloss.Iftheimpairmentlossforanindividualassetexceedsthecarryingvalueoftheasset,theexcessisrecognisedasaprovision.

Therecoverablevalueisthehigherofthecashgeneratingunit’sorindividualasset’sfairvalue,lesscoststosell,anditsvalueinuse.Fairvaluelesscoststosellistheamountobtainablefromthesaleoftheassetinanarm’slengthtransactionbetweenknowledgeable,willingparties,lessthecostofdisposal.Valueinuseisthepresentvalueofestimatedfuturecashflowsexpectedtoflowfromthecontinuinguseoftheassetandfromitsdisposalattheendofitsusefullife.

Iftherecoverableamountofacashgeneratingunitorindividualassetsubsequentlyexceedsthecarryingvalueresultingfromtheapplicationofitsaccountingpolicy,animpairmentreversalisrecognisedtothatextent.Theimpairmentreversalisappliedinreverseordertotheimpairmentloss.

Property,plantandequipment

Landisaccountedforatcostandisnotdepreciatedunlesstherehasbeenapermanentdeclineinitsvalue.Buildings,computerequipment,furnitureandfittings,officeequipment,motorvehicles,softwaredevelopmentandrefurbishmentsarestatedatcostanddepreciatedonthereducingbalancemethodovertheirestimatedusefullives.

Depreciationisprovidedovertheusefullifeofeachassettowritedownitscarryingvalue,onasystematicbasis,toitsestimatedresidualvalue.Thedepreciationmethodadoptedreflectsthepatterninwhichtheasset’s,oritscomponent’s,economicbenefitsareconsumed.Thedepreciationchargeofanimpairedassetisadjustedinfutureperiodstoallocatetheasset’srevisedcarryingvalue,lessitsresidualvalue,onasystematicbasisoveritsremainingusefullife.

Theassetsresidualvaluesandusefullivesarereviewedateachreportingdateandadjustedifnecessary.

Thefollowingdepreciationrateswereappliedduringtheyear:Buildings 2%p.a.Motorvehicles 20%p.a.Computerequipment&softwaredevelopment 25%p.a.Officeequipment 20%p.a.Furniture&fittings 15%p.a.Refurbishments 33%p.a.

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NOTESTOTHEANNUALFINANCIALSTATEMENTS–CONTINUEDFor the period ended 31 March 2015


Property,plantandequipment

Gainsandlossesondisposalofproperty,plantandequipmentaredeterminedbyreferencetotheircarryingamountandaretakenintoaccountindeterminingthenetincomeorloss.

Leasedassets

Leasesunderwhichtherisksandrewardsofownershipareeffectivelyretainedbythelessorareclassifiedasoperatingleases.

Investments

Investmentproperty

Investmentpropertiesareheldtoearnrentalincomeandforappreciationincapitalvalue.Owner-occupiedpropertiesareheldforadministrativepurposes.Thisdistinguishesowner-occupiedpropertiesfrominvestmentproperties.Investmentpropertyisdistinguishedfromowneroccupiedpropertyonthesubstantivepercentageusagebasis.Reclassificationstoorfrominvestmentpropertyareonlyrecognisedwhenachangeinuseisevidencedbythesubstantivepercentageusagebasis.

Investmentpropertyismeasuredatfairvaluedeterminedannuallyatmarketvalueonacomparablemarkettransactionbasis.AnyresultingfairvalueadjustmentsarerecognisedintheStatementofchangesinnetassetsandfunds.Investmentpropertiesarenotsubjecttodepreciation.

Investmentpropertyisderecognisedonreclassificationtoowneroccupiedpropertyorondisposalandisremeasuredtofairvalueatthedateofderecognition.

Investmentsinfinancialinstruments

Afinancialinstrumentisanycontractthatgivesrisetobothafinancialassetofoneentityandafinancialliabilityorequityinstrumentofanotherentity.Afinancialassetorafinancialliabilityisrecognisedwhenitscontractualarrangementsbecomebinding.Investmentsinfinancialinstrumentsareclassifiedandmeasuredasfollows:

Investmentclassification Classification CarryingvalueHeldfortrading Equities: NSX–primarylisting Atfairvaluethroughstatementofchangesinnetassetsandfunds FairvalueNSX–secondarylisting Atfairvaluethroughstatementofchangesinnetassetsandfunds Fairvalue Foreign listed equities At fair value through statement of changes in net assets and funds Fair valueUnlistedequities Atfairvaluethroughstatementofchangesinnetassetsandfunds FairvalueEquityindex-linkedinstruments Atfairvaluethroughstatementofchangesinnetassetsandfunds FairvalueDebentures Atfairvaluethroughstatementofchangesinnetassetsandfunds FairvalueBills,bondsandsecurities Atfairvaluethroughstatementofchangesinnetassetsandfunds FairvalueCollective investments At fair value through statement of changes in net assets and funds Fair valueInsurance policies: Non-marketrelatedpolicies Atfairvaluethroughstatementofchangesinnetassetsandfunds FairvalueMarketrelatedpolicies Atfairvaluethroughstatementofchangesinnetassetsandfunds FairvalueDerivativemarketinstruments Atfairvaluethroughstatementofchangesinnetassetsandfunds FairvalueCash and deposits At fair value through statement of changes in net assets and funds Amortised costPrivateequity Atfairvaluethroughstatementofchangesinnetassetsandfunds FairvalueOpen Trades and Accruals At fair value through statement of changes in net assets and funds Amortised costHeldtomaturity Loansanddebentures Loansandreceivables AmortisedcostOther investments under management At fair value through statement of changes in net assets and funds Fair value


49



At fair value through statement of changes in net assets and funds

Afinancialassetatfairvaluethroughthestatementofchangesinnetassetsandfundsisinitiallymeasuredatcostontradedate,whichincludestransactioncosts.Subsequenttoinitialrecognition,theseinstrumentsaremeasuredassetoutbelow. Afinancialassetatfairvaluethroughthestatementofchangesinnetassetsandfundsismeasuredatfairvalue,whichisthefairvaluewithoutanydeductionfortransactioncoststhatmaybeincurredonsaleorotherdisposal

Fair value is determined as follows:ListedinvestmentsInvestmentslistedonarecognisedstockexchangearevaluedbyreferencetostockexchangequotedsellingpricesatthecloseofbusinessonthereportingdate.

Unlistedinvestment/PrivateequityUnlistedequityinvestmentsarecalculatedbytheboardoftrustees,withreferencetothetrustees’valuationasattheendofthereportingperiod.

MarketrelatedinsurancepoliciesMarketrelatedpoliciesarevaluedattheequivalenttothemarketvalueoftheunderlyingassetsascertifiedbytheinvestmentinsurersconcerned.

Non-marketrelatedinsurancepoliciesNon-marketrelatedpoliciesarevaluedattheequivalentoftheguaranteedamountandbonusesascertifiedbytheinsurercon-cerned.Non-vestedincomeisincludedinthevaluation.

DerivativemarketinstrumentsDerivativemarketinstrumentsarevaluedatmarketvalue.

Cash and depositsCashanddepositsarevaluedatamortisedcost.

Open trades and accrualsOpentradesandaccrualsarevaluedatamortisedcost.

SubsequentmeasurementAnygainorlossarisingonremeasurementtofairvalueofafinancialassetclassifiedasatfairvaluethroughthestatementofchangesinnetassetsandfundsisrecognisedinnetinvestmentincomeinthereportingperiodofoccurrence.

DerecognitionOnderecognition,afinancialassetclassifiedasatfairvaluethroughthestatementofchangesinnetassetsandfunds,isremeas-uredtofairvalueatthedateofderecognition.

Loansandreceivables

Loansandreceivablesarenon-derivativefinancialassetswithfixedordeterminablepaymentsthatarenotquotedonanactivemarketandarerecognisedwhentheassetisacquiredusingtradedateaccounting.

Loansandreceivablesaremeasuredatamortisedcost.

Amortised costAmortisedcostiscalculatedbyusingtheeffectiveinterestratemethodasadjustedforanyimpairment.Transactioncostsonac-quisitionareincludedinthecostoftheassetoninitialrecognition.

ImpairmentLossesmeasuredonimpairmentsandgainsrecognisedonthereversalofimpairmentsarerecognisedasanexpenseorincomeintheStatementofchangesinnetassetsandfundsinthereportingperiodofoccurrence.

Gains and lossesAgainorlossonloansandreceivablesisrecognisedintheStatementofchangesinnetassetsandfundswhenthefinancialassetisderecognisedorimpaired,andthroughtheamortisationprocess.

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BenefitandPensionclaim

Benefitexpensesarerecognisedasthebenefitsoccur,throughthestatementofchangesinnetassetsandfundsonanaccrualbasis.Aliabilityisraisedforallbenefitsaccruingattheendofthefinancialyear,whichhasnotbeenpaid.

Transfers to and from other funds

Section 14 transfers to or from other funds are recognised on approval being granted by theRegistrar. Individualtransfersarerecognisedwhentheindividualmember’stransferisreceivedorpaid.

Otherfinancialinstruments

Financialinstrumentsotherthaninvestmentsandtransferstoandfromotherfundsarerecognisedatamortisedcost.Otherfinancialassetsaretestedforimpairmentannuallyandadjustedforanyimpairmentwriteoffsandreversals.

Provisionsforbenefitsandexpenditure

Employee benefits for compensated absences arising frompast events, forwhich it is probable that an outflowofeconomicbenefitswillberequiredtosettletheobligation,arerecognisedasaprovisionatthenettotalofthepresentvalueoftheobligationatthereportingdate.Changesintheoutstandingobligation,inareportingperiod,arerecognisedinthestatementofchangesinnetassetsandfunds.

Provisionforemployeebenefits

EmployeebenefitsforaccruedleaveandbonusarerecognisedasaprovisionintheStatementofchangesinnetassetsandfunds.

Contributions

Contributionsarebroughttoaccountontheaccrualbasisexceptforvoluntarycontributions,whicharerecordedintheperiodinwhichtheyarereceived.

Dividendincome

Dividendincomeisrecognisedwhentherighttoreceivepaymentisestablished.

Insurancepolicyincome

Insurancepolicyincomeisrecognisedwhentherighttoreceivepaymentisestablished.

Interest income

Interest income is recognised and accrued to the investment using the effective interest rate method and recognised in netinvestmentincome.Interestreceived,wherenoaccrualhadpreviouslytakenplace,iscreditedtotheinvestmentonreceipt.

Collective investment schemes

Incomeoncollectiveinvestmentschemesisrecognisedwhentherighttoreceivepaymentisestablished.

Rentalincome

Rentalincomeisrecognisedontheaccrualbasisinaccordancewiththesubstanceoftherelevantagreementsovertheleaseterm.Rentalpremiumsaspertherentalcontractareamortisedonastraight-linebasisovertheleaseterm.


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Estimates and management assumption for the future

Significantestimatesandjudgementsthatwereincludedinthefinancialstatementsrelatetothefollowing:

• Accrualforunclaimedbenefits AccrualforunclaimedbenefitsismadewhentheFundisnotifiedofaclaim.CurrentlytheFundhasnoother mechanismsofestablishinguninitiatedclaims, andthereforeisnotinapositiontoestimatetheextent,ifany,ofuninitiatedclaims.

• Anactuarialvaluationisperformedeverythreeyearsinorder,amongstothers,toestablishthefundinglevelsof theFund.ThisactuarialvaluationisdependentuponestimatesmadebytheStatutoryActuaryandanychanges inestimateswillimpactonthefundingleveloftheFund.

• Avaluationofnon-publiclytradedinvestmentsisdoneannually,asinformationoftheseinvestmentsandloans arenotreadilyavailable.Significantjudgementisusedindeterminingthefairvalueoftheseinvestmentsand loans.

Comparatives

Wherenecessary,comparativefigureshavebeenreclassifiedtoconformtochangesinpresentationinthecurrentperiod.

Subsequentmeasurement

Loansandreceivablesaresubsequentlymeasuredatamortisedcost,usingtheeffectiveinterestratemethod,adjustedforanyimpairment.

Financialassetsaresubsequentlymeasuredatamortisedcost,usingtheeffectiveinterestratemethod,adjustedforanyimpairment.

Financialliabilitiesaresubsequentlymeasuredatamortisedcost,usingtheeffectiveinterestratemethod.

Tradeandotherreceivables

Tradeandotherreceivablesaremeasuredatinitialrecognitionatfairvalue,andaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestratemethod.Appropriateallowancesforestimatedimpairmentsarerecognisedthroughthestatementofchanges innetassetsand fundswhen there isobjectiveevidence that theasset is impaired.Theallowance recognised ismeasuredas thedifferencebetween theasset’scarryingamountand thepresentvalueofestimatedfuturecashflowsdiscountedat theeffective interestratecomputedat the initial recognition.Thecarryingamountoftheassetisreducedthroughtheuseofanallowanceaccount,andtheamountoftheprofitisrecognisedinthestatementofchangesinnetassetsandfunds.Whenatradereceivableisuncollected,itiswrittenoffagainsttheallowanceaccount for tradereceivables.Subsequent recoveriesofamountspreviouslywrittenoffarerecognised inthestatementofchangesinnetassetsandfunds.Tradeandotherreceivablesareclassifiedasloansandreceivables.

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1. Property,plantandequipment

1.1. 31March2015 Land& Motor Computer Computerand Furniture, Total buildings vehicles software& officeequipment fittingsand systems refurbishments N$‘000 N$‘000 N$‘000 N$‘000 N$‘000 N$‘000 Grosscarryingamount At1April2014 61,156 3,990 24,212 23,491 15,243 128,092Additions 1,026 436 1,453 3,235 1,980 8,130Disposals - - - - - - At 31 March 2015 62,182 4,426 25,665 26,726 17,223 136,222 Accumulateddepreciation (10,830) (1,804) (18,754) (16,932) (11,728) (60,048) At1April2014 (9,858) (1,316) (17,180) (14,782) (10,815) (53,951)Depreciationcharges (972) (488) (1,574) (2,150) (913) (6,097)Depreciationondisposals - - - - - - Netcarryingamountat31March2015 51,352 2,622 6,911 9,794 5,495 76,174

Landandbuildingscompriseof:Erf 2015 N$’0007489,Windhoek(aportionoferf79Windhoek) 37,307906,Swakopmund 15,3371592,Oshakati 9,324342,KatimaMulilo(vacanterf) 682329,Ondangwa(vacanterf) 146 62,182


53


1. Property,plantandequipment-(Continued)

1.2 31March2014 Land& Motor Computer Computerand Furniture, Total buildings vehicles software& officeequipment fittingsand systems refurbishments N$‘000 N$‘000 N$‘000 N$‘000 N$‘000 N$‘000 Grosscarryingamount At1April2013 60,362 4,699 19,781 27,358 15,612 127,812Additions 794 - 4,431 - 116 5,341Disposals - (709) - (3,869) (484) (5,062) At31March2014 61,156 3,990 24,212 23,489 15,244 128,091 Accumulateddepreciation (9,858) (1,316) (17,179) (14,782) (10,815) (53,950) At1April2013 (8,897) (1,338) (15,634) (18,204) (10,706) (54,779)Depreciationcharges (961) (625) (1,545) (3,616) (1,920) (8,667)Depreciationondisposals - 647 - 7,038 1,811 9,496 Netcarryingamountat31March2014 51,298 2,674 7,033 8,707 4,429 74,141

Landandbuildingscompriseof:Erf 2014 N$’0007489,Windhoek(aportionoferf79Windhoek) 36,281906, Swakopmund 15,3371592,Oshakati 9,324342, KatimaMulilo(vacanterf) 682329,Ondangwa(vacanterf) 146 61,156

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2. Investments Common Total Total Local MonetaryArea Foreign 2015 2014 N$’000 N$’000 N$’000 N$’000 N$’000

Investments held for trading Equities 23,908,387 15,704,566 22,740,482 62,353,435 47,887,065*Privateequity 1,629,270 - 1,446,083 3,075,353 1,947,324Cash and deposits 2,143,407 1,087,487 307,554 3,538,448 2,727,225Bills,bondsandsecurities 4,932,664 8,669,281 5,924,642 19,526,587 17,855,544Collectiveinvestmentschemes 170,747 - - 170,747 6,561,755Investmentsheldtomaturity Loans 41 - - 41 41Derivativemarketinstruments - 11,221 563,301 574,522 23,797Open trades and accruals Tradesalesreceivables 169,542 164,637 102,416 436,595 418,949Tradepurchasespayable (292,245) (789,983) (116,961) (1,199,189) (1,155,145)Investmentincomereceivables 249,996 90,477 1,629 342,105 332,105Sundrydebtors 70 69 - 139 125Sundrycreditors - (0) - (0) (2)Total 32,911,879 24,937,755 30,969,146 88,818,779 76,598,783 37% 28% 35% 100% 100%

2015 2014 N$’000 N$’000 *Privateequity Amountadvanced 1,629,270 947,408Less:impairment - -Netcarryingamount 1,629,270 947,408

3. Accountsreceivable 2015 2014 N$‘000 N$‘000AdvancestoKuleniFundAdministrators(Pty)Ltd 2,680 2,300Accruedinterestoncontributionlatepayments 3,240 2,361Studyloans-staff 1,476 1,230VATreceivable 7,613 6,057Other 468 1,119 15,477 13,067

4. Accountspayable 2015 2014 N$‘000 N$‘000Investment management fee accruals 72,051 60,438Custodian fee accruals 1,425 560NAMFISAlevyaccrual 3,242 3,906Leaveaccrual 9,076 7,394Bonusprovision 1,066 977Operational creditors 15,815 10,185PAYE 856 2,167Other 2,593 2,398 106,124 88,025


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5. Benefits Benefitspaid Benefitspaid Benefitspayable Benefitspayable 2015 2014 2015 2014 N$‘000 N$‘000 N$‘000 N$‘000Monthlypensions 978,843 857,686 45,515 38,697Lumpsumsonretirements 600,710 322,679 140,524 99,750Lumpsumsbeforeretirement Deathbenefits 115,077 132,741 356,625 318,782 Withdrawalbenefits 362,836 293,708 133,806 98,131Funeralbenefits 9,138 8,577 552 524 2,066,604 1,615,391 *677,022 *555,884

*Non-currentbenefitspayableolderthanoneyearisN$278,957(2014:N$242,603).

6. Unclaimedbenefits/Rejections 2015 2014 N$’000 N$’000 Atbeginningofperiod 30,755 29,932Transferredfrombenefitspayable 20,986 9,930Benefitspaid (20,040) (9,107)At end of period 31,701 30,755

7. Contributions Contributions Contributions Contributions Contributions receivable receivable receivable receivable 2015 2014 2015 2014 N$‘000 N$‘000 N$‘000 N$‘000Membercontributions 917,246 759,290 102,753 65,214Employercontributions 2,341,943 1,842,234 207,591 154,050Contributionsrefunds (1,430) (117) - - 3,257,759 2,601,407 310,344 219,264

8. Netinvestmentincome 2015 2014 N$’000 N$’000Incomefrominvestmentpropertiesandinvestments 11,409,292 13,323,251• Dividends 1,364,004 1,124,626• Interestincome 1,060,425 978,810• Realisedprofit 3,762,760 2,840,637• Unrealisedprofit/(loss)oninvestments 1,487,081 6,146,007• Managementfeerebate - 2,375• Securitieslendingincome 17,870 15,644• Foreignexchangeincome/(losses)-unrealised 3,443,931 197,979• Foreignexchangeincome/(losses)-realised 268,433 2,015,339• Otherinvestmentincome 4,788 1,834 Less:Expensesincurredinmanaginginvestments (327,545) (231,190) 11,081,747 13,091,061

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9. Otherincome 2015 2014 N$’000 N$’000Bankinterestincome 13,398 11,327Interestonlatepaymentsofcontributions 936 - Other income 2,260 1,868 16,594 13,195

10. Administration/operatingexpenses 2015 2014 N$’000 N$’000

Actuarial fees 588 588Auditors remuneration 1,368 1,233 Prioryears 1,368 1,233Bankcharges 1,485 1,212Consultancyfees 9,396 9,996Depreciation 6,098 6,311NAMFISAmembershiplevies 1,810 1,804Officeexpenses 31,877 32,192Operatingleasepayments 406 804Otherexpenses–taxpenaltiesandinterest - 3,067Principalofficerexpenses 2,547 2,453 Remuneration 1,543 1,435 Allowances 664 811 Contributionstoretirementfund 220 97 Bonus 120 110Executivemanagement 7,099 5,048 Remuneration 4,090 2,875 Allowances 2,043 1,470 Contributionstoretirementfund 725 513 Bonus 241 190Staffexpenses 91,826 71,366 Remuneration 88,157 68,690 Training expenses 2,740 2,001 Studyloangrants 929 675Trustee/director expenses 3,178 3,565 Seminarsandworkshops 146 794 Training 460 93 Meeting allowances 2,572 2,678

157,678 139,639

10.1Numberofemployees 2015 2014PrincipalOfficer 1 1Executive Management 6 5Permanent 187 168Fixed term 11 11Casuals 10 8

215 193


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11. Riskmanagementpolicies

Riskmanagementframework

TheBoardofTrusteeshasoverallresponsibilityfortheestablishmentandoversightoftheFund’sriskmanagementpolicies.

TheFund’sriskmanagementpoliciesareestablishedtoidentifyandanalysetherisksfacedbytheFund,tosetappropriaterisklimitsandcontrols,andtomonitorrisksandadherencetolimits.Riskmanagementpoliciesandsystemsarereviewedregularlytoreflectchangesinmarketconditionsandthefund’sactivities.

• SolvencyriskSolvencyriskistheriskthattheinvestmentreturnsonassetswillnotbesufficienttomeettheFund’scontractualobligationstomembers.

ContinuousmonitoringbytheBoardandtheFund’sactuarytakesplacetoensurethatappropriateassetsareheld,ordisinvestedfrom,whereappropriate,wherethefundsobligationtomembersaredependentupontheperformanceofspecificportfolioassetsandthatasuitablematchofassetsexistsforallotherliabilities.

• CreditriskCreditriskistheriskthatacounter-partytoafinancialinstrumentwillfailtodischargeanobligation,andcausetheFundtoincurafinancialloss.

TheBoardmonitorsreceivablebalancesonanon-goingbasiswiththeresultthatthefund’sexposuretobaddebtsisnotsignificant.Thelevelofprovisionismaintainedasdeemednecessary.

• LegalriskLegalriskistheriskthattheFundwillbeexposedtocontractualobligationswhichhavenotbeenprovidedfor.TheLegalAdvisorreviewsallcontractualagreementsbeforetheyaresigned.Morecomplexagreementsarereferredtoexternallawyersforreviewandadvice.

• CashflowriskCashflowriskistheriskthatfuturecashflowsassociatedwithmonetaryfinancialinstrumentswillfluctuateinamount.Inthecaseofafloatingratedebtinstrument,forexample,suchfluctuationsresultinachangeintheeffectiveinterestrateofthefinancialinstrument,usuallywithoutacorrespondingchangeinitsfairvalue.

• MarketriskMarketriskistheriskthatthevalueofafinancialinstrumentwillfluctuateasaresultofchangesinthemarket.Marketriskappliestoallinvestmentsaccountedforatfairvalue.Marketriskcomprises:

CurrencyriskCurrencyriskistheriskthatthevalueofafinancialinstrumentwillfluctuate,inNamibiaDollar,becauseofchangesinforeignexchangerates.TheFundisfullyawareoftheconstantfluctuationoftheinternationalcurrenciesrelativetotheNamibiaDollar(whichisourbasereportingcurrency).TheFundthroughitsdesignatedassetmanagersinvestsinassetsaroundtheglobe.ItispartofthemandateofthemanagerstoactivelymonitorandmanagecurrencyriskoftheseinvestmentsrelativetotheUSdollarandtheydothisthroughexposuretoanumberofdifferentcurrenciesandsecurities.

FairvalueinterestrateriskFairvalueinterestrateriskistheriskthatthevalueofafinancialinstrumentwillfluctuatebecauseofchangesinmarketinterestrates.

TheFundoutsourcesthemanagementofitsassetstoreputableassetmanagementfirms.Allthesefirmshaveestablishedriskmanagementpoliciesandproceduressupportedbyriskmanagementdepartmentswithskilledstaff.AllrisksassociatedwiththeinstrumentsinwhichGIPFfundsareinvested,arethereforemanagedbytheseassetmanagementfirms(i.e.cashflowrisk,marketrisk,currencyriskandfairvalueinterestraterisk).

PriceriskPriceriskistheriskthatthevalueofafinancialinstrumentwillfluctuateasaresultofchangesinmarketprices,whetherthosechangesarecausedbyfactorsspecifictotheindividualinstrument,oritsissuer,orfactorsaffectingallinstrumentstradedinthemarket.

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11. Riskmanagementpolicies-continue

• LiquidityriskLiquidityriskistheriskthattheFundwillencounterdifficultyinraisingfundstomeetcommitmentsassociatedwithfinancialinstruments.TheFund’sliabilitiesarebackedbyappropriateassetsandithassignificantliquidresources.

12. Relatedpartyrelationships

TransactionsbetweentheparticipatingemployerandtheFundoccurredduringtheperiod:

• TheFundreceivedlatepaymentofcontributions(note9) • Theparticipatingemployersmadecontributionstowardthemembers’retirementfundingandtowardsthe Fund’sexpenses(refertonote7). • TheFundpaidprincipalofficerandtrustee/directorexpensesoftheFund(refertonote10).

BalancesduebytheparticipatingemployerstotheFundatyearend:

• TheparticipatingemployershavecontributionspayabletotheFund(refertonote7).

12.1Contributions

TheFundreceivedcontributionspaidbytheparticipatingemployersduringtheperiod(refertonote7):

• Theparticipatingemployersmadecontributiontowardsmembers’retirementandexpenses. • TheparticipatingemployerscontributionspayabletoFund.

13. Contingentliabilities

TheFundhasthefollowingfacilitieswithFirstNationalBankofNamibia:

• ContingentfacilitiesforaguaranteeissuedinfavourofBankWindhoekonbehalfofNamibiaProcurementFundamountingtoN$13.5millioninlieuof actualdrawdownoncommittedamount.

14. Investmentcommitmentsasat31March2015 2015 2014 N$million N$million Commitments Disbursed Undisbursed Commitments Disbursed Undisbursed Amounts Amounts Amounts AmountsBusinessFinancialSolutions 160 160 - 160 160 -FirstCapitalTreasurySolutions(Pty)Ltd 400 381 19 100 19 81KongalendFinancialServices 150 95 55 150 95 55KönigsteinCapital(Pty)Ltd 150 140 10 150 51 99IJG Africa Alliance 160 60 100 160 58 102 PreferredManagementServices 250 210 40 250 168 82OldMutualInvestmentGroupNamibia 550 283 267 550 217 333SaflandPropertyServicesNamibia 450 289 161 450 279 171SanlamInvestmentManagementNamibia 250 8 242 250 5 245VPBNamibia 160 61 99 160 56 104Totalamounts 2,680 1,687 993 2,380 1,108 1,272


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Website: www.gipf.com.na

GIPF House, Corner of Dr Kenneth David Kaunda & Goethe Streets, WindhoekPO Box 23500Windhoek Tel: (061) 205 1000Fax: (061) 205 1232 Email: [email protected]: www.gipf.com.na

2015 - gipf · ms ellaine samson (till august 2014), ms elsie beukes, ms kandali nuugwedha (till...

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