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Here is how PFAs performed year-to-date on multi-fund structure

Funds growth performance of the different Pension Fund Administrators (PFAs) from January to August 2023 reveals dominance by NPF Pensions in majority of the funds, according to data from money counsellors.

The data revealed that Nigerian University Pension Management Company Limited (NUPEMCO) lead Fund 1, with 23.41 percent, while NPF Pensions cornered 23.11 percent, where average of the fund is 13.58 percent.

Fund 11, was led by Pal Pensions with 16.16 percent, while NPF came second with 15.57 percent, with funds average put at 11.29 percent.

NPF Pensions led fund 111 with 16.41 percent, followed by Crusader Sterling Pensions 11.83 percent, with funds averaging N9.44 percent.

The National Pension Commission (PenCom) introduced the Multi- Fund structure through the enactment of the Pension Reform Act (2014) and the amendment of the Regulation on Investment of Pension Fund Assets in 2018.

It was meant to give some flexibility to Retirement Savings Account holders (RSA) on how they want their pension assets to be managed and take into consideration their risk appetite. So, the Multi-Fund structure aims to align the age and risk profile, (tolerance level) of RSA holders.

Fund 1V was also led by NPF with 11.38 percent, followed by Crusader 9.74 percent, while Fund V1 was led by Stanbic IBTC Pensions with 11.00 percent, followed by Access Pensions with 10.33 percent.

NUPEMCO led in Fund V1 (active) with 20.4 percent, while crusader Sterling followed with 12.78 percent; and Fund V1(retiree) was led by Stanbic IBTC Pensions with 8.95 percent and was followed by Premium Pensions with 8.71 percent.

The multi-fund structure comprises of Fund I, Fund II, Fund III, Fund IV (Retiree Fund), Fund V (Micro Pension Fund), and Fund VI (Active and Retiree) – the Sharia Compliant Funds, and they differ among themselves according to their overall exposure to variable income, conventional, and sharia- compliant instruments, according to analysts from Veritas Glanvills pensions.


This fund is accessible to contributors aged forty-nine (49) years and below. The fund is particularly suitable for contributors with a longer duration of work life. Existing RSA holders who wish to belong to Fund I must make an active choice by notifying their PFA of their intention to move to the Fund. However, contributors in Fund III, IV, and VI Retiree cannot switch to Fund I due to their age (at this point, they are close to retirement or retired) and risk profile.

The fund can invest up to 75 percent of its assets in variable income instruments which can earn returns above the inflation rate in the long term.


This is the default fund for those that are forty-nine (49) years and below as at their last birthdays. Contributors are onboarded by default into this fund type unless they elect otherwise.

Contributors may elect to move to other funds or are moved automatically upon the attainment of fifty (50) years of age. Contributors can elect to move to Fund I, depending on their risk appetite or Fund VI Active based on the ground of ethical investment. Contributors that are above 50 years can also elect to be in Fund II. However, contributors in Fund IV and VI Retiree cannot switch to Fund II due to their risk profile.

The Fund can invest up to 55 percent of its assets in variable income instruments.

Note that Funds I and II invest pension assets in the same classes of instrument, the difference is just the percentage of maximum exposure to those asset classes.


This is a pre-retirement fund with a significantly reduced risk exposure to variable income instruments. This fund is for active contributors who are above 50 years. However, contributors in the fund can elect to move to Fund II but are not allowed to move to Fund I.

Read also: Access Pensions targets informal sector in push for top PFA spot


This fund is strictly for RSA retirees only. The fund is for those that have applied for retirement and chosen the Programmed Withdrawal option. The main objective of the retiree fund is to ensure that the fund does not diminish or lose value.

PenCom’s regulation provides that maximum exposure of 10 percent of portfolio value can be invested in variable income instruments. A minimum of 90 percent of the fund is invested in fixed-income instruments. It is purely a conservative fund.


This fund is for Self-employed persons. Contributions are flexible and may be paid daily, weekly, monthly, or as may be convenient. The regulation allows for a maximum of 40 percent to be withdrawn for contingent purposes while 60 percent shall be for retirement savings.

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