• New to Investing
  • Invest with Us
  • Our Funds
  • Tools
  • About Us
  • Insights
  • Contact Us
  • Investor type

    Change Country

    M&G Investments

    M&G Investments

    April 2024

    Investment Focus: M&G Namibian Inflation Plus Fund

    The recent economic landscape in Namibia presents both challenges and opportunities for investors. The country's central bank forecasts a modest GDP growth rate for the coming years, driven by factors such as weaker global growth prospects and uncertainties stemming from the ongoing drought. However, there are bright spots on the horizon, such as the government's initiatives to support small businesses and boost the construction and tourism sectors.

    Despite Namibian assets broadly underperforming their South African peers in the last quarter, the M&G Namibian Inflation Plus Fund has demonstrated resilience and delivered consistent returns over time. With a diversified portfolio that includes global equities, Namibian inflation-linked bonds, and cash holdings, the fund has weathered market fluctuations and capitalised on opportunities for growth.

    With a strategic focus on outperforming Namibian CPI by 4% per annum, this multi-asset class fund offers investors a unique opportunity to preserve purchasing power and earn real returns in the face of inflationary pressures.

    The Fund's investment strategy, focused on generating above-inflation returns while minimising the risk of capital loss, makes it an attractive option for investors at various stages of their financial journey. Whether saving for retirement, drawing a pension, or seeking to protect savings from inflation, the M&G Namibian Inflation Plus Fund offers a tailored approach to capital preservation and growth.

    Notable contributors to the fund's performance include investments in Naspers/Prosus, Multichoice, Richemont, BAT, and gold counters like Anglogold Ashanti and Gold Fields. While challenges like concerns over MTN's Nigerian operations and fluctuations in mining and financial services sectors have posed risks, the Fund's diversified approach has helped mitigate potential losses.

    In conclusion, the Namibian Inflation Plus Fund provides investors with a strategic and well-managed avenue to navigate the complexities of the Namibian investment landscape. With a track record of delivering consistent returns and a focus on outperforming inflation, this fund is well-positioned to help investors achieve their financial goals and secure their financial future in an ever-changing market environment.


    Did you enjoy this article?

    Sign up for our newsletter