Oak and Sigma Pensions lead Nigerian pension fund administrators in Q3 2021 – Nairametrics

The Nigerian pension fund industry has become more competitive in recent times as individuals can now easily switch from one ATP to another. In the recent sector analysis, carried out by Nairametrics Research, the 20 PFAs with available data printed an average return on investment of 2.57% in the third quarter of 2021.

This is according to data tracked by Nairametrics Research on fund performance of Nigerian pension fund administrators. The data used for this analysis comes from the websites of the various PFAs.

Also, the price of the funds on September 30, 2021 was compared to that recorded on June 30, 2021, in order to obtain the best performing funds over the period Q3.

According to the analysis, Oak Pensions, Sigma Pensions and First Guarantee Pension Limited were the best performing PFAs during the review period, with average growth of 3.45%, 3.17% and 3.14% respectively.

APT Pensions and IEI-Anchor Pension Managers have not been included in this report due to incomplete data, while all efforts to obtain it directly have been unsuccessful.

A closer look at the data revealed that RSA Fund I performed best in the third quarter of the year, recording a return on investment of 2.62%, followed by RSA Fund II.

Best PFA in Q3 2021

The three best performing pension fund administrators in the third quarter of 2021 saw significant growth in their respective RSA funds. The best performance was obtained by averaging the percentage change in the different fund prices on June 30, 2021 compared to that on September 30, 2021.

First position: OAK Limited Pensions

Yield Q3 2021 – 3.45%

Second post: Sigma Limited Pensions

Yield Q3 2021 – 3.17%

Third post: First Limited Pension Guarantee

Yield Q3 2021 – 3.14%

Best PFAs by Fund Category

Below is a list of the best performing pension funds in Nigeria in the third quarter of 2021.

RSA I Fund

First position: OAK Limited Pensions

Yield Q3 2021 – 5.22%

Second post: FCMB Limited Pensions

Yield Q3 2021 – 3.25%

Third post: NLPC Pension Fund Administration Limited

Yield Q3 2021 – 3.24%

Others on the list include Sigma Pensions Limited (+ 3.12%), Investment One Pension Management Limited (+ 3.07%) and First Guarantee Pension Limited (+ 3.05%).

RSA II Fund

First position: Investment One Pension Managers Limited

Yield Q3 2021 – 3.68%

Second post: Limited first guarantee pensions

Yield Q3 2021 – 3.57%

Third post: Sigma Limited Pensions

Yield Q3 2021 – 3.47%

Others on the list include Nigeria Police Force Pensions Limited (+ 3.26%), Premium Pension Limited (+ 3.15%), and Trustfund Pensions Plc (+ 3.08%).

RSA III Fund

First position: Limited first guarantee pensions

Yield Q3 2021 – 3.12%

Second post: Sigma Limited Pensions

Yield Q3 2021 – 3.06%

Third post: Limited Pension Alliance

Yield Q3 2021 – 2.96%

Others on the list include FCMB Pensions Limited (+ 2.89%), Nigeria Police Force Pensions Limited (+ 2.84%) and Oak Pensions (+ 2.74%).

RSA IV Fund

First position: Sigma Limited Pensions

Yield Q3 2021 – 3.03%

Second position: Nigeria Police Force Pensions Limited

Yield Q3 2021 – 3.01%

Third post: Limited first guarantee pension

Yield Q3 2021 – 2.84%

Others on the list include; OAK Pensions Limited (+ 2.81%), Pensions Alliance Limited (+ 2.80%) and Fidelity Pension Managers Limited (+ 2.74%).

About the multi-fund structure

The multi-fund structure is a framework designed to align the age and risk profile of RSA holders in any of the four segregated funds.

RSA I Fund

This is an aggressive fund intended for active contributors aged 49 and under. The main objective of the fund is to maximize returns on investment. In particular, 20 to 75% of the funds would be invested in variable income instruments. It should be mentioned that clients are eligible to switch to Fund II or Fund III (once they reach the age of 50).

RSA II Fund

It is a balanced fund with the intention of preserving capital while pursuing fair long-term returns. This is the default fund for active contributors aged 49 and under. About 10 to 55% of pension funds can be invested in variable income instruments. In addition, active contributors aged 49 and under can switch to Fund I according to their request.

RSA III Fund

Rather, it is a conservative fund, whose main objective is the preservation of capital. About 5 to 20% of the funds would be invested in variable income instruments. This is the default fund for contributors aged 50 and over. Active contributors can switch to Fund II on request.

RSA IV Fund

This is a fund strictly reserved for retirees and mainly for the Conservatives. Approximately 10% of the fund may be invested in variable income instruments. During this time, contributors in this fund category are not eligible to switch to other fund types.

Why it matters

The increased competition seen in the pension industry is a result of the transfer window, which allows pension contributors to switch from one ATP to another if they wish. This has intensified their efforts to generate competitive returns for their contributors. Meanwhile, Nairametrics reported that Stanbic and VG Pensions topped the PFA performance rankings between January and July 2021.

Source link

About Christian M.

Check Also

Bank of Ireland’s IT director for pensions says regulations are killing liberal economies

“I wouldn’t dare tell a business how it should be run, they are the experts. …