FUNDING & PORTFOLIO MANAGEMENT
Having been intensely involved in the establishment of INCA and the building of the municipal loan portfolio with a total value of R15,3 billion, IPM was requested in 2010 (by the INCA shareholders) to manage the loan portfolio on a fixed contract basis.
In addition to the INCA portfolio, IPM recently created the new INCA Municipal Debt Fund (IMDF)*. IPM as fund administrator is performing an all inclusive active management role, inclusive of:
- Municipal credit assessment
- Generation of a shadow credit rating
- Performance monitoring
- Loan deal generation
- Funds mobilisation
- Social investment impact reporting
- Outcome based evaluation and reporting
It is IPM's objective to grow the IMDF loan portfolio to a real sizable portfolio of municipal long-term loans (R3 - R7 billion) within the near future. Its specific mandate is to focus on intermediate municipalities in South Africa. In addition to mobilising funding and successfully completing loan transactions, IPM (as part of its portfolio management function) is also utilising its detailed understanding of municipal credit and municipal finance to foster approaches and practices of good governance, financial discipline and transparency.
IPM has the ability to manage, in full or in part, the investment portfolio of any investor requiring detailed municipal risk experience or who wishes to invest in municipal infrastructure in South Africa.
* To be officially launched on 2 July 2021.