Radix Pension Managers, a Pension Fund Administrator (PFA), has risen to the fifth position on Return on Investment (ROI) in assets under management among its peers in the pension management business.
The RSA Fund III ROI from January 2020 to August 2020 for all PFAs in the country indicated that Radix emerged among the top five PFAs with high performance level.
Fund III, one of the four distinct funds of the RSA Multi-Fund Structure introduced by the National Pension Commission (PenCom), allows a contributor to choose the fund through which his or her pension contributions would be invested by his or her PFA.
Also, RSA Multi-Fund Structure is designed for investing pension contributions based on the age and risk profiles of RSA holders. The four distinct funds differ from one another based on age classification, namely, Fund I (less than 50 years, but based on request. This fund is particularly suitable for contributors with a longer duration of employment as their fund can be invested in a higher yield); Fund II (default fund for all contributors less than 50 years.); Fund III (50 years and above); Fund IV (strictly for retirees).
The rates of return on pension fund investments vary from year to year, depending on prevailing economic conditions and performance of the Nigerian financial markets, as well as the investment strategies of the various PFAs. However, the Commission monitors the PFAs to ensure that returns are competitive and fair.
Income generated from investing pension contributions is fully distributed into the RSAs of contributors based on the proportion of the assets in the individual RSA.
Radix however recorded a 14.78 per cent return between January and August 2020 on the investment made for contributors in this category.
Meanwhile, the PFA also performed well in the investment of funds under the RSA Fund I, Fund II and Fund IV with an average aggregate return of 9.28 per cent over the same period. Which is above the industry average ROI.
Kunle Adeboye, managing director, in a statement, attributed the performance of the company’s funds to efficient investment strategy.
According to him, the economic review of the First Half of year 2020 showed a major hit on the economy from the impact of the pandemic that is ravaging the global economy, with weeks of lockdown witnessed in major economic nerves of the country.
He said despite the high volatility witnessed across markets, including the equities market and fixed income, coupled with instability in the economy in Quarter 1 2020, the RSA Fund I, II, III & IV had returned 3.11 per cent, 5.81 per cent, 7.64 per cent and 6.84 per cent in Q 1 2020.
Consequently, the funds have returned an average of 80.02 per cent from inception across all funds.
He maintained that irrespective of events and trends across markets and the economy, Radix pension Managers remains committed and resolute in ensuring that it attains optimum return on each fund through efficient investment strategy driven by sound research and risk management process.
