The Nigerian pensions industry has grown more competitive in recent years following the opening of the transfer window by the National Pension Commission (PenCOm), which gives pension contributors the opportunity to switch from one PFA to another.
The improved competition in the sector has created the added incentive for PFAs to be innovative in their investments in order to outpace each other in printing impressive returns on investments. The 22 PFAs posted an average return on investment of 7.41% in 2021, with about 90% of the firms recorded growth across all their four fund categories.
Since the transfer window was opened, 38,518 RSA holders have switched PFAs in a little less than one year. Hence, the need for the firms to ramp up their performance so as to boost their contributors list and assets under management.
A look at the performances of the twenty-two (22) PFAs show some standout returns, which is expected to reflect on their performance in 2022. A cursory analysis of the past year performance gives an idea of some PFAs worth looking out for in the new year.
Stanbic IBTC Pension Managers
Stanbic IBTC Pension Managers Limited is a subsidiary of Stanbic IBTC Holdings PLC (a member of the Standard Bank Group), incorporated on 19th May 2004. The firm has an authorized and paid-up capital of N1 billion, in line with the minimum requirement of N1 billion.
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The company is a joint venture between Stanbic IBTC Holdings PLC and Linkage Assurance PLC. Stanbic IBTC Pension Managers Limited is 88.24% owned and managed by the Stanbic IBTC Group
Stanbic IBTC Pension Managers recorded growth across all its fund categories in 2021, printing 11.93% in its fund I, resulting in a 9.7% average ROI. According to the information on the company’s website, maximum of 75% of its portfolio is being invested in variable income instruments.
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Veritas Glanvills Pensions otherwise known VG Pensions was licensed by the National Pension Commission (PenCom) as a Pension Fund Administrator on the 21st of June 2007 to manage Retirement Savings Accounts (RSA) of individuals/organizations across both the public and private sector in Nigeria.
Veritas Glanvills Pensions is owned by long-standing financial corporates in insurance, Veritas Kapital Assurance Plc and Glanvills Enthoven & Co. Limited, an insurance broking company. Veritas Glanvills Pensions has an authorized and paid-up share capital of N1.5Billion and operates from seven (7) regional offices in Abuja, Lagos, Ibadan, Port Harcourt, Anambra, Kano and Jos.
The firm witnessed a good 2021 in terms of its returns, posting an average return on investment of 8.73% in the review year.
Leadway Pensure PFA Limited (“Leadway Pensure”) was incorporated on the 25th day of August 2004 as a Pension Fund Administrator in accordance with the provisions of the Pension Reform Act 2004. Formed by a consortium of three (3) major financial service companies,
According to the company’s website, Leadway Pensure over the last decade has spread across over 25 branches in the country servicing over 500,000 RSA accounts.
Leadway Pensure is one of the most capitalized PFA’s in Nigeria with an authorized share capital of N2.0 billion. The company’s shareholders’ fund is in excess of N7.6 billion, unimpaired by losses.
Leadway Pensure also saw its fund investments appreciate in the review year, printing stellar returns across its four fund categories. Specifically, its vast knowledge in money management and investments yielded an average ROI of 8.22% in 2021, placing the firm amongst one of the best performing PFAs in the country.
Sigma Pensions Limited
Sigma Pensions Limited commenced operations on the 8th of December 2005 as a licensed pension fund administrator (PFA) following the establishment of the contributory pension scheme in 2004.
In 2016, a leading international private equity investor in emerging markets, Actis with investments of over USD7.6 billion assumed majority ownership of Sigma Pensions through ActisGolf Nigeria Limited. As of December 2020, the company manages over 750,000 RSA accounts nationwide.
Meanwhile, Sigma Pension recorded an 8.67% average ROI in 2021.