Pension Funds Performance

The intensity with which pension funds in Nigeria generate gains for contributors seems to have slowed down towards the end of the first quarter of the year. This is because most funds generated positive returns that were less than the previous months. That notwithstanding, both the RSA and Retiree fund category of pension funds ended the first quarter of the year with positive performance.

According to an analysis by Quantitative Financial Analytics, the RSA funds recorded an average return of 0.86% in March, while the Retiree fund category recorded a corresponding 1.02% to bring the average return for the first quarter to 2.95% and 3.2% respectively. Once again, the RSA and Retiree funds outperformed the NSE Pension index which ended the quarter with a return of negative 1.83%.

However, the Q1 2019 performance is lower than the performance for Q1 2018 when the RSA and Retire funds generated 3.76% and 3.78% average return, respectively. Below are the rankings for the first quarter of 2019.

Best Performing Fund

Name of Fund: Oaks Pensions RSA Pension Fund 2

YTD Performance %:  3.87%

YTD Gain per unit:  N0.10

Second Best Performing Fund

Name of Fund: AXA Mansard Pensions RSA Pension Fund 2

YTD Performance %:  3.83%

YTD Gain per unit:  N0.11

3rd Best Performing Fund

Name of Fund: Pension Alliance Pensions RSA fund 2

YTD Performance %:  3.68%

YTD Gain per unit:  N0.13

4th Best Performing Fund

Name of Fund: Investment One Pensions RSA Fund 2

YTD Performance %:  3.54%

YTD Gain per unit:  N0.11

5th Best Performing Fund

Name of Fund: Fidelity Pensions RSA Fund 2

YTD Performance %:  3.52%

YTD Gain per unit:  N0.10

Retiree Fund Performance

Retiree Pension funds, otherwise known as fund 4, continued to perform better than their RSA fund counterparts because of their greater exposure to fixed income securities and less exposure to risky instruments like equities. Below are the 5 best performing Retiree pension funds as at the end of Q1 2019.

Best Performing Fund

Name of Fund:  Investment One Pensions Retiree Fund 4

YTD Performance %:  5.53%

YTD Gain per unit:  N0.12

Second Best Performing Fund

Name of Fund: Pension Alliance Retiree Fund 4

YTD Performance %:  3.82%

YTD Gain per unit:  N0.12

3rd Best Performing Fund

Name of Fund: AIICO Pensions Retiree Fund 4

YTD Performance %:  3.81%

YTD Gain per unit:  N0.12

4th Best Performing Fund

Name of Fund: AXA Mansard Pensions Retiree Fund 4

YTD Performance %:  3.69%

YTD Gain per unit:  N0.10

5th Best Performing Fund

Name of Fund: Fidelity Pensions Retiree Fund 4

YTD Performance %:  3.65%

YTD Gain per unit:  N0.10

For a complete list of Retiree fund performance, contact Quantitative Financial Analytics Ltd.

Coronation Research
Uchenna Ndimele is the President of Quantitative Financial Analytics Ltd. MutualfundsAfrica.com and mutualfundsnigeria.com (both Quantitative Financial Analytics company website) is a leader in supplying mutual fund information, analysis, and commentary on African mutual funds. We provide reliable fund data; and ratings information that will add value to fund managers, the media, individual investors and investment clubs.

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