Investment One Pensions Managers Limited has emerged the top Pension Fund Administrator (PFAs) to have reported the highest Return on Investment (ROI) for the fund II, III and IV categories.
The financial services firm grew ROI the most in the month of April by an average of 6 percent in all three aforementioned funds, from levels in the previous month, thanks to its continued innovative products and services from the firm’s experienced and professional employees.
On a month-to-month basis, the firm grew its Retirement Saving Account (RSA) Fund II fund price to 2.9166 in April, according to the latest Pencom Data.
That’s a 6.16 percent ROI when compared with a price of 2.7474 in the month of March.
For Fund III and IV, the firm grew ROI by 5.34 percent and 6.21 percent, to a fund price of 1.2320 and 2.5691 respectively.
Meanwhile, Crusader Sterling Pensions Limited topped the chart in the Fund I category with a ROI of 6.54 percent after growing Fund I price to 1.1307 in April from I.0613 in the previous month.
A growth in ROI means that all the participating contributors to the fund will share from the growth in the form of increase in returns.
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The Nigerian pension Industry like others operate a multi fund structure, such that retirement savings holders are placed in fund structures depending on their ages and risk profile.
Fund I is a special but optional type of fund that RSA holders who are below 50 years of age can request to be moved to. It has the highest exposure to stock among the funds under the multifund structure meaning that a higher percentage of fund 1 is invested into buying shares of companies compared to other funds. About 20 percent to 75 percent of portfolios are assigned to variable income instruments under the Fund I category.
For Fund II, RSA holders who are below 50 years are placed on default. About 10 percent to 55 percent of Portfolios in the fund class are exposed to variable investment instruments.
Fund III, is the default fund for RSA holders who are 50 years and above but have not retired. Around 5 percent to 20 percent of portfolios of this class are assigned to high risk instruments.
The last pension fund class, known as Fund IV is strictly earmarked for retirees, and are not allowed to move to other funds. Fund IV has the lowest exposure to equity.
Year to date, the Veritas Glanvills Pensions Limited has shown great performance, having grown ROI in all Fund I, II and IV.
The Pension firm reported an ROI of 9 percent, 4.24 percent and 5.58 percent respectively, while Radix Pension Fund Managers topped Fund III with an ROI of 5.38 percent.
