Home Features Pension Fund Administrators in Nigeria and their scorecard

Pension Fund Administrators in Nigeria and their scorecard

120

Despite the disruptions caused by the COVID-19 pandemic, which affected most aspects of the Nigerian economy, Pension Fund Administrators (PFAs) in Nigeria performed satisfactorily, as they recorded positive returns between January and August 2020.

According to the report from Pension Nigeria, no PFA had negative returns on investment (ROI) during the period under review, indicating that all PFAs for Fund I, II, III, and IV recorded positive returns.

This is quite impressive, given that the pandemic had impacted most aspects of the Nigerian economy negatively, causing a 1.95% (year-to-date) decline of the NSE’s All Share index, while the country’s Gross Domestic Product (GDP) contracted by 6.1% in the second quarter of 2020.

Industry average Return on Investment (ROI)

  • Fund I industry with 20 PFAs, recorded an average of 8.14% returns between January and August 2020.
  • Fund II industry has 22 PFAs, and recorded an average return of 9.33%.
  • Fund III recorded an industry average returns of 10.37%, with 22 PFAs.
  • While Fund IV with 22 PFAs, recorded 9.01% return on investment.

It is worth noting that no single PFA was dominant in all the four funds. NLPC PFA Limited and Investment One Pension Managers Limited, however, had dominance in three funds.

Veritas Glanvills pensions Limited, Fidelity Pension Managers Limited, and IEI-Anchor Pension Managers Limited topped the list in two funds. Radix Pension Fund Managers Limited, Stanbic IBTC Pension Managers Limited, Sigma Pensions Limited, OAK Pensions Limited, AXA Mansard Pension Managers Limited, NPF Pensions Limited, Crusader Sterling Pensions Limited, and Nigerian University Pension Management Limited dominated the list in one fund.

How the PFAs performed in each of the Funds 

  • Fund I – Veritas Glanvills Pensions Limited topped the list in average return on investment on Fund I with 21.11%, followed by Stanbic IBTC Pension Managers 12.33%, Sigma Pensions Limited 11.95%, OAK Pensions Limited 11.59%, and IEI-Anchor Pension Managers 9.88%.
  • Fund II – NLPC Pension Fund Administrators Limited led the pack with an average return on investment of 24.32%, followed by IEI-Anchor Pension Managers Limited 11.59%, Crusader Sterling Pensions Limited 10.74%, Investment One Pension Managers Limited 10.65%, and Nigerian University Pensions Limited 10.25%
  • Fund III – NLPC Pension Fund Administrators Limited dominated the top 5 list with 24.84%, followed by Investment One Pension Managers Limited 17.58%, Radix Pension Fund Managers 14.78%, Fidelity Pension Managers Limited 12.45%, and AXA Mansard Pensions Limited 11.46%.
  • Fund IV – NLPC Pension fund Administrators Limited maintained the lead in the top 5 PFAs with 23.59%, followed by Investment One Pension Managers Limited with 15.28%, Fidelity Pension Managers Limited with 12.3%, NPF Pensions Limited with 10.98%, and Veritas Glanvills Pensions Limited with 9.74%.

How all the PFAs performed in all the Fund categories 

12 out of the 22 PFAs performed above the average ROI of 9.28%, for all the funds put together. NLPC Pension Fund Administrators Limited topped the list (20.33%), followed by Investment One Pension Managers Limited (14.5%), Veritas Glanvills Pensions limited (12.02%), AXA Mansard Pensions (10%), OAK Pensions Limited (9.7%).

Others include Leadway Pensure PFA Limited (9.67%), Crusader Sterling Pensions Limited (9.65%), AIICO Pension Managers (9.61%), IEI-Anchor Pension Managers Limited (9.51%), Fidelity Pension Managers (9.46%), Stanbic IBTC Pension Managers (9.45%), and Radix Pension Fund Managers Limited (9.28%).

Meanwhile, 10 PFAs performed below the average ROI, with Premium Pensions Limited (4.96%) at the bottom of the list, followed by APT Pension Fund Managers (5.81%), First Guarantee Pensions Limited (6.46%), TrustFund Pensions Plc (6.61%), ARM Pension managers (7.0%).

Other Administrators that made the list includes, Nigeria University Pension Management Co. Limited (7.23%), Pension Alliance Limited (7.40%), FCMB Pensions Limited (7.60%), Sigma Pensions (8.86%), NPF Pensions Limited (8.95%).

About PFAs

In Nigeria, the requirement for the Contributory Pension Scheme is that the pension funds are to be privately and exclusively managed by licensed Pension Fund Administrators (PFA). The main functions of the PFAs are to open Retirement Savings Accounts (RSA) for employees, invest and manage pension fund assets, payment of retirement benefits, and accounting for all transactions relating to the pension funds under their management.

Currently, there are twenty-two (22) PFAs in Nigeria with a total asset value in excess of N11 trillion as of date.

Effective from 2nd July 2018, the MultiFund Structure for Retirement Savings Accounts (RSA) was required to be implemented across all the PFAs in Nigeria. The Multi-Fund structure is a framework that aims to align the age and risk profile of RSA holders, by dividing the RSA Fund into four distinct fund categories;

  • RSA FUND I: Retirement Savings Account Fund I (An Active Contributor who is below 50 years of age, and chooses for his contribution to be invested in this fund).
  • RSA FUND II: Retirement Savings Account Fund II (default fund for all Active Contributors, who are below 50 years of age)
  • RSA FUND III: Retirement Savings Account Fund III (default fund for all Active Contributors, who are 50 years and above)
  • RSA FUND IV: Retirement Savings Account Fund IV (Fund for Retirees only)

Inter-Fund Movement 

In implementing the Multifund framework, the Pension Commission allows Retirement Savings Account (RSA) holders to move from one fund category to another.

  • Fund I – It is a special but optional fund category that RSA holders who are below 50 years of age can request to be moved to. It has the highest exposure to the stock market amongst all the funds under the multifund structure, as a higher percentage of the fund is usually invested in buying shares of companies, compared to other fund categories.
  • Fund II – It is the default fund under the multifund framework for RSA holders who are below 50 years of age. Most RSA holders fall under this category. It is quite necessary to consciously monitor the performance of Fund I to assist in making decisions, whether to move to fund I or remain in the fund category.
  • Fund III – It is the default fund for RSA holders who are 50 years of age and above, but are still active in the employment service. The multifund structure permits the PFAs to move anybody who is 50 years and above from Fund II to fund III. The law allows the RSA holders to request to be moved back to fund II if she/he so desires. If the RSA holder is 50 years and above and has not requested to be moved back to fund II, he/she will be automatically moved in Fund III. It is imperative the RSA holder monitors the performance of Funds III and II, as to be able to decide whether to remain in fund III or migrate to fund II.
  • Fund IV – It is otherwise known as the Retiree fund. All the RSA holders who are retired from active service are automatically moved to fund IV category, and the retirees are not permitted to move to any other fund categories.

RELATED ARTICLES

120 COMMENTS

  1. May I simply say what a comfort to discover someone that really knows what they’re talking about
    on the net. You certainly understand how to bring an issue to light
    and make it important. More people must read this and understand this side of your story.
    I was surprised that you are not more popular because you
    most certainly possess the gift.

    Feel free to surf to my blog – Lavina

  2. Hey! I just wanted to ask if you ever have any
    problems with hackers? My last blog (wordpress) was hacked and I
    ended up losing months of hard work due to no backup.

    Do you have any solutions to prevent hackers?

    My blog post – discuss

  8. I seriously love your site.. Very nice colors &
    theme. Did you develop this site yourself? Please reply back as
    I’m trying to create my own website and want to find out where you got this
    from or just what the theme is called. Many thanks!

    Also visit my blog post Deadpool costume

  9. Howdy! I know this is kinda off topic but I was wondering
    which blog platform are you using for this site?
    I’m getting tired of WordPress because I’ve had problems with hackers and I’m looking at options
    for another platform. I would be great if you could point me in the
    direction of a good platform.

    Feel free to visit my blog; read more..

  10. My brother suggested I might like this website.
    He was entirely right. This post truly made my day.
    You can not imagine simply how much time
    I had spent for this info! Thanks!

    Also visit my web site; https://is.gd/ygjD2h

  18. Today, I went to the beachfront with my kids. I found
    a sea shell and gave it to my 4 year old daughter and said “You can hear the ocean if you put this to your ear.” She put the shell to her
    ear and screamed. There was a hermit crab inside and it pinched her ear.

    She never wants to go back! LoL I know this is entirely off topic but I
    had to tell someone!

    Also visit my web-site – vilhelmsenada.livejournal.com

  19. Wow that was unusual. I just wrote an really long comment but
    after I clicked submit my comment didn’t appear.

    Grrrr… well I’m not writing all that over again. Anyway, just
    wanted to say superb blog!

    My blog post – yogicentral.science

  23. Hello there, just became aware of your blog through Google, and found that it’s really informative.

    I am going to watch out for brussels. I will be grateful if you continue this
    in future. Many people will be benefited from your writing.
    Cheers!

    Visit my web page: q2ansbd.xyz

  26. Today, while I was at work, my cousin stole my iphone and
    tested to see if it can survive a twenty five foot drop, just so she can be
    a youtube sensation. My iPad is now broken and she has 83 views.

    I know this is entirely off topic but I had to share it with someone!

    Feel free to surf to my web blog: scientific-programs.science

  27. At this time it sounds like Expression Engine is the preferred blogging platform available right now.
    (from what I’ve read) Is that what you are using on your blog?

    My web site – discuss

  30. Everything is very open with a very clear explanation of the issues.
    It was truly informative. Your website is extremely helpful.

    Thanks for sharing!

    Here is my homepage :: gm6699.com

  32. Hi i am kavin, its my first time to commenting anyplace, when i read this post i thought i could also make comment due to this good piece of writing.

    Look at my web-site; view more

  36. I do not know whether it’s just me or if
    everyone else encountering problems with your website.
    It appears as though some of the text in your content are
    running off the screen. Can someone else please provide feedback and let me know if
    this is happening to them too? This could be a issue with my browser because I’ve had this
    happen previously. Thank you

    Take a look at my webpage https://kwafoo.coe.neu.edu:7788/git/okradonkey4

  39. I really like your blog.. very nice colors &
    theme. Did you design this website yourself or did you
    hire someone to do it for you? Plz respond as I’m looking to construct my own blog and would like to know where u got
    this from. thank you

    Here is my web blog wiki.openn.eu

  42. It’s actually a nice and useful piece of info.
    I am glad that you shared this helpful info with us. Please stay us
    up to date like this. Thank you for sharing.

    my web page; seotot.edu.vn

  43. Just wish to say your article is as surprising.
    The clearness for your put up is simply great and that i can suppose you are an expert on this subject.

    Fine with your permission allow me to take hold of your feed to
    keep up to date with impending post. Thanks a million and please carry on the gratifying
    work.

    Visit my web-site :: qooh.me

  44. An intriguing discussion is worth comment.
    I do believe that you need to write more about this subject, it might not be a taboo matter but typically people do not talk about such topics.
    To the next! Kind regards!!

    my web site – http://www.culturish.com

  54. That is really attention-grabbing, You’re an overly professional blogger.
    I have joined your feed and stay up for looking for extra of your fantastic post.

    Additionally, I have shared your site in my social networks

    My blog :: Deadpool costume

  58. Howdy! This post couldn’t be written any better! Reading this
    post reminds me of my good old room mate! He always kept chatting about this.
    I will forward this post to him. Pretty sure he will have a good read.
    Many thanks for sharing!

    my web blog :: teampages.com

  59. Hi, i think that i saw you visited my site thus i came to “return the favor”.I’m attempting
    to find things to enhance my web site!I suppose its ok to use some of your ideas!!

    Here is my web blog – discuss

  62. Its like you learn my mind! You appear to know so much about this,
    such as you wrote the book in it or something.
    I think that you can do with some p.c. to power the message
    home a bit, however instead of that, this is excellent blog.
    A great read. I’ll definitely be back.

    My homepage :: latoyawalsh.page.tl

  64. Greetings I am so happy I found your web site, I really found you by error,
    while I was looking on Aol for something else, Anyhow
    I am here now and would just like to say thanks for a incredible
    post and a all round entertaining blog (I also love the theme/design), I don’t have time to browse it all
    at the minute but I have book-marked it and also added your RSS feeds, so when I
    have time I will be back to read much more, Please do keep up the superb b.

    Here is my website: rispondipa.it

  68. Magnificent goods from you, man. I’ve understand your stuff previous to and you are just too great.
    I actually like what you’ve acquired here, really like what you are saying and the way in which you say it.
    You make it enjoyable and you still take care of to keep it
    smart. I can’t wait to read much more from you.
    This is actually a wonderful website.

    Visit my site – vipersrc.com

  69. Wonderful blog! Do you have any hints for aspiring writers?
    I’m hoping to start my own site soon but I’m a little lost on everything.
    Would you suggest starting with a free platform like WordPress or go for
    a paid option? There are so many options out there that
    I’m completely overwhelmed .. Any recommendations?

    Many thanks!

    Feel free to visit my page :: 8bitbay.com

  77. Someone necessarily help to make critically posts I’d state.

    That is the very first time I frequented your web
    page and thus far? I surprised with the research you made to make this particular post
    extraordinary. Wonderful job!

    Here is my blog post usedsalvagecars.com

  78. Thanks , I’ve recently been looking for information about this topic
    for a while and yours is the best I’ve came upon so far.
    But, what about the conclusion? Are you certain about
    the source?

    Review my site – http://www.dezobarieri.ge

  79. It’s a pity you don’t have a donate button!
    I’d definitely donate to this outstanding blog! I suppose for now i’ll settle for bookmarking and adding your RSS feed to my Google account.
    I look forward to fresh updates and will share this site with
    my Facebook group. Talk soon!

    Feel free to surf to my blog … https://www.openstreetmap.org/edit

  88. Does your website have a contact page? I’m
    having problems locating it but, I’d like to send you an email.

    I’ve got some suggestions for your blog you might be interested in hearing.

    Either way, great blog and I look forward to seeing it develop over time.

    my website … discuss

  91. Very good blog! Do you have any tips and hints for aspiring writers?
    I’m planning to start my own website soon but I’m a little lost on everything.
    Would you suggest starting with a free platform
    like WordPress or go for a paid option? There are so many
    choices out there that I’m completely confused ..
    Any tips? Thanks a lot!

    Feel free to visit my web page; https://biosnab.com/user/salarysampan58/

  92. Good day! I could have sworn I’ve been to this site before but after reading
    through some of the post I realized it’s new to me.
    Nonetheless, I’m definitely delighted I found it and I’ll be bookmarking
    and checking back often!

    Look at my page – nerdgaming.science

  96. The other day, while I was at work, my cousin stole my apple ipad and tested to see
    if it can survive a forty foot drop, just so she can be a youtube sensation.
    My iPad is now broken and she has 83 views. I know this is completely off topic but I had to share it with someone!

    My blog post; http://www.mynewnet.com

  105. I’m extremely impressed with your writing skills as well as with the layout on your blog.
    Is this a paid theme or did you customize it yourself?

    Either way keep up the nice quality writing, it’s rare to see a nice blog like this one these
    days.

    Feel free to visit my web site :: socialdialogue-lt.com

  109. Hello there, I discovered your site by the use of Google whilst searching for a similar topic,
    your web site got here up, it appears great. I’ve
    bookmarked it in my google bookmarks.
    Hello there, just changed into alert to your weblog
    through Google, and located that it’s really informative.
    I am going to watch out for brussels. I will appreciate should you continue
    this in future. Many people shall be benefited from your writing.

    Cheers!

    Also visit my blog post :: https://www.pinterest.com/richardsonporterfield/

  112. certainly like your web site however you need to check the spelling on quite a few of your posts.
    A number of them are rife with spelling problems and I in finding it very bothersome to inform the reality however I will surely
    come again again.

    Visit my homepage: scoringcentral.mattiaswestlund.net

  114. Hi! This is my 1st comment here so I just wanted to give a quick shout out and say I really enjoy reading your blog posts.
    Can you recommend any other blogs/websites/forums that
    go over the same subjects? Thanks a ton!

    Look into my web blog – https://list.ly/romona-joshua

  117. I will immediately grab your rss as I can’t in finding your email subscription hyperlink or newsletter service.
    Do you have any? Kindly allow me recognise so that I could subscribe.
    Thanks.

    Here is my page; splice.com

  118. Hi, Neat post. There’s a problem together with your web site in web explorer,
    would test this? IE still is the market leader and a good part of other folks will omit your wonderful writing because of this problem.

    Here is my web-site – discuss

  120. I do not even know how I ended up here, but I thought this post was good.

    I don’t know who you are but definitely you’re going
    to a famous blogger if you are not already 😉 Cheers!

    Also visit my web blog; 홈타이

LEAVE A REPLY

Please enter your comment!
Please enter your name here

© Copyright -2020 Law and Society Magazine
Exit mobile version