Stanbic IBTC Pension Managers Limited, APT Pension Fund Managers Limited, Tangerine Pensions Limited and NLPC Pension Fund Administrators Limited have each top one mutifund (1- 4) managed by Pension Fund Administrators in return on investment (ROI).
According to analysts at Pension Nigeria, each of the PFAs outpaced others in return on investment within the review period of inception of the Multi Fund Structure up the end of the 2021 financial year.
The Multi-Fund structure is a framework that aims to align the age and risk profile of Retirement Savings Account (RSA) holders by dividing the RSA Fund into three Fund types while retaining the single Retiree fund (four fund types in all 3 active funds and 1 Retiree fund).
The new structure allows RSA holders more control over how their pension funds are invested based on their risk tolerance.
Fund One:
The five Pension Fund Administrators (PFAs) with the highest Return on Investment (ROI) for Fund 1 from inception in July 2018 to 31 December 2021 are:
Stanbic IBTC Pension Managers 87.80 percent; Veritas Glanvills Pension Limited 65.99 percent; Crusader Sterling Pensions Limited 57.12 percent; Oak Pensions Limited 54.54 percent; and Leadway Pensure Limited 51.63 percent.
According to the Pension Nigeria, all PFAs had the opportunity to advice their RSA holders below 50 years to switch to fund 1 immediately the Mutifund structure was launched, but only few PFAs were able to convince their RSA holders to move to Fund 1 immediately.
“PFAs that have a low ROI for their fund1 from inception in July 2018 to 31 December 2021, are most likely because they started late. Fund one has the highest exposure to stock among the funds under the Mutifund Structure, it’s the optional fund that RSA holders below 50 years old can request to be moved to, the analysts.
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Fund TWO:
The five PFA with the highest ROI for Fund 2 for the five years period under review 2017 to 2021 are: APT Pension Fund Managers Limited 104.74 percent; Tangerine Pensions Limited 103.29 percent; Crusader Sterling Pensions Limited 99.50 percent; Veritas Glanvills Pensions Limited 89.74 percent; and NLPC Pension Fund Administrators Limited 89.40 percent
According to Pension Nigeria Fund 11 is the default fund under mutifund structure for RSA holders who are below 50 Years old. Multi fund structure gives RSA holders the right to request to be moved to fund One if they so choose.
“The maximum equity exposure for fund 11 is 25 percent. If you are below 50 years old, you should pay particular attention to the performance of Fund Two but you should also monitor the performance of Fund One to assist you in deciding whether to move to Fund One or not. Any RSA holder below 50 years old who has not requested specifically to be moved to Fund One, will be in Fund Two
Fund Three
The five PFAs with the highest Return on Investment for Fund 3 from inception July 2018 to 31 December 2021 are: Tangerine pensions Limited 71.55 percent; NLPC Pension Fund Administrators Limited 64.59 percent; Investment One Pension Mangers Limited 63.82 percent; APT Pension Fund Managers Limited 62.16 percent; and Radix Pension Fund Managers Limited 61.19 percent.
The analysts said Fund 3 is the default Fund for RSA holders who are 50 years old and above but have not retired.
“Multi Fund structure gives PFAs the right to move these RSA holders who were in Fund 2 before the multifund structure was created to Fund 3, but the RSA holders can request to be moved back to Fund 2 if they chose.”
Maximum equity exposure for Fund 3 is 10 percent. If you are 50 years and above and you have not requested to be moved back to Fund 3, then you will be in Fund 3. You should pay attention to the performance of fund 3 and keep an eye on the performance of Fund 2 to enable you decide whether to move back to Fund 2, the Pension Nigeria analysts said.
Fund Four
The Five PFAs with the highest ROI for fund 4 for the five years period under review 2017 to 2021 are NLPC Pension Fund Administrators Limited 109.56 percent; Tangerine Pensions Limited 107. 41 percent; Crusader Sterling Pensions Limited 101.61 percent; Veritas Glanvills Pensions Limited 97.3 percent; and Investment One Pensions Limited 96.55 percent.
Fund 4 is the retiree Fund. All RSA holders that have retired are automatically moved to Fund 4 and cannot move to other funds. Fund 4 has the lowest equity exposure at 5 percent.
