Among the 21 licensed Pension Fund Administrators (PFAs) in the country, ARM Pension Mangers is leading in Year to Date returns with 1.2 percent on Fund II as at 3rd of March 2021.
Fund II, the largest fund type under management and is the default fund for Retirement Savings Account (RSA) holders of 49 years and below.
Analysis of performance of the PFAs from data obtained in the industry shows that, ARM is followed closely on the table by AXA Mansard Pensions, and Veritas Glanvills Pensions that have Year to Date Returns of 1.04 percent and 0.64 percent respectively, as at 3rd March 2021.
On Fund III, which is the default fund for RSA holders of 50 years and above, ARM Pension Managers is also leading other 20 PFAs in Year To Date Returns with 1.27 percent as at the first week of March.
ARM is followed closely by Stanbic IBTC Pensions with Year to Date returns as at 5th March 2021 of 0.97 percent and Leadway Pensure PFA 0.85 percent as at 4th March 2021.
These fund types came out of the creation of Multi-Fund Structure by the National Pension Commission (PENCOM) which aims to match age and risk profile. Apart from Fund II and III, there exist other funds.
Fund I is only on request but not accessible to retirees and active contributors of 50 years and above; Fund IV is only for retirees, while Fund V is only for micro pension funds; and Fund V1 is for non interest funds.
The Contributory Pension Scheme requires pension funds to be privately managed exclusively by licensed Pension Fund Administrators (PFA).
The main functions of the PFAs are to open Retirement Savings Account (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.
