Nigerian pension funds asset recorded tepid growth in the month of March, recovering marginally from the negative growth recorded in the previous month, as 81.25% of the total funds recorded positive growth against 22% recorded in February.
This is according to data tracked by Nairalytics Research on the fund performances of Nigerian Pension Funds Administrators.
A cursory look at the data revealed that the RSA Fund IV on average performed the best in March, followed by RSA Fund III, while RSA Fund I remained flat in the review month.
Nairametrics considered the prices of the different RSA funds as of 28th February 2021 and compared them with the prices as of the last day of March (31st March 2021).
READ: Pension asset increases to N9.33 trillion – PenCom
Below is a list of the best-performing funds in March
RSA Fund I
This fund has the highest allocation of risky or variable income instruments and participation is strictly upon a formal request from a contributor. The RSA Fund I is suitable for people who want to invest in high-risk instruments with higher rewards. Hence, contributors who are 50 years and above cannot apply to be moved into this fund.
According to available data 9 of the funds recorded positive growth in the month under review, as against 1 recorded in the previous month.
First position: Crusader Sterling Pensions Limited
- March return: 0.68%
Second position: ARM Pension Managers Limited
- March return: 0.52%
Third position: FCMB Pensions Limited
- March return: 0.44%
Others on the list of gainers include; Premium Pension Limited, Trustfund Pensions Plc, Pensions Alliance Limited, Stanbic IBTC Pension Managers, NPF Pensions Limited, and Sigma Pensions Limited.
It is noteworthy that Investment One Pension Managers and Veritas Glanvills Pensions were not included in the analysis, as their information could not be obtained, as at the time of writing this article. Considering the aggregate performance of the fund, it stood flat at 0%.
READ: NLPC, Investment One and OAK PFAs generate highest ROI in three RSA funds for 11 months
RSA Fund II
This fund is balanced and suitable for middle-aged contributors as well as those with a medium risk appetite. It is designed to be less risky with reduced allocation to variable income instruments compared to Fund I. The age requirement for participation is 49 years and below.
First position: Crusader Sterling Pensions Limited
- March return: 0.65%
Second position: FCMB Pensions Limited
- March return: 0.63%
Third position: ARM Pension Managers Limited
- March return: 0.6%
Others on the list, which recorded positive growth in the month of March include; Leadway Pensure PFA, Nigerian University Pension Management, Trustfund Pensions, Pensions Alliance, Sigma Pensions Limited, Stanbic IBTC, and Radix Pension Fund Managers.
Of the 20 funds considered in the analysis, 16 recorded positive growth in value, representing 80% of the total. Meanwhile, it is noteworthy that as with the case in the RSA fund I category, Investment One Pension Managers and Veritas Glanvills Pensions, were not included.
The aggregate performance of the RSA Fund II, stood at 0.29% in March 2021.
RSA Fund III
This is a conservative fund that is designed for contributors close to retirement and contributors with a low-risk appetite. It is suited for contributors between the ages of 50 and 60 years. However, younger contributors may opt to participate in this fund category.
First position: APT Pension Fund Managers Limited
- March return: 1.17%
Second position: Crusader Sterling Pensions Limited
- March return: 0.73%
Third position: Pensions Alliance Limited
- March return: 0.66%
In this category of funds, all the pension funds posted positive growth in the month of March, with the exception of Investment One and Veritas Glanvills, which were not included in the analysis. The aggregate RSA Fund III, appreciated by 0.47% in March 2021.
RSA Fund IV
The RSA Fund IV is exclusively for retirees. In the month of February, of all 22 Pension Fund Administrators, 10 of them recorded positive growth. However, they were all marginal growth of less than 1%.
First position: Pensions Alliance Limited
- March return: 0.74%
Second position: First Guarantee Pension Limited
- March return: 0.74%
Third position: Crusader Sterling pensions Limited
- March return: 0.71%
Similarly, as witnessed in the RSA Fund III category all but AIICO Pension Managers recorded positive growth in March 2021, a recovery compared to the previous month. In terms of the aggregate performance, RSA Fund IV grew by 0.5% in the month under review.
According to the monthly report from the National Pension Commission, the total Pension Fund assets declined in the month of February 2021 from N12.3 trillion recorded as of 31st January 2021 to N12.25 trillion. This could be attributed to the bearish performance of the various funds in February 2021.
