Trustfund Pensions Ltd, a licensed Pension Fund Administrator (PFA) under the provisions of the Pension Reform Act 2014, is an entity that emerged from the former NSITF.
Its ownership structure reflects the representation of Nigerian workers’ bodies such as NLC and TUC, employers represented by NECA, and the private sector through Chapel Hill Denham.
As of December 31, 2022, Trustfund Pensions boasted shareholders’ funds amounting to N18.10 billion.
Data collated from PenCom’s periodic reports in 2022 shows that Trustfund Pensions ended the 2022 financial year with 797,444 RSA holders in the 6 publicly available RSA funds, an increase of 20,003 RSA holders from 777,441 in 2021.
Additionally, assets under management for the 5 audited Retirement Savings Accounts (RSAs) published reached N702.55 billion, up 10.42% from N636.27 billion in 2021.
Performance Analysis: Company
For the year ended December 31, 2022, the company’s total revenue grew by 12.25% to N9.22 billion, compared to N8.21 billion in 2021.
The cost of managing the business rose by 10.53%, leading to a cost-to-income ratio of 63.24%, slightly down from 64.22% in 2021. This five-year average stands at 67.85%.
Profit After Tax (PAT) for 2022 increased by 9.62% to N2.33 billion, compared to N2.13 billion in 2021.
Whilst Trustfund Pensions did not require recapitalization during the last regulator-induced recapitalization exercise, shareholders’ funds grew to N18.10 billion in 2022 from N13.57 billion in 2021.
Performance Highlights: RSA Funds (audited)
For the last 6 years, Trustfund Pensions has not included NAV per Unit in summary accounts for each respective fund published on its website and in accordance with PenCom’s guidelines.
As such, this has constrained us to use each respective fund’s unaudited NAV per unit as of 31 December 2022 as obtained from the company’s website.
For the year ended 31 December 2022, using unaudited numbers, the Trustfund Pensions Fund I appreciated in value by 8.58%, Fund II appreciated by 8.93%, Fund III by 9.19%, Fund IV by 10.47% and Fund V by 7.12%. Trustfund Pensions offers Fund VI – Non-Interest (Active) and publishes daily prices.
However, no audited accounts are available for the period 31 December 2022. Trustfund Pensions currently publishes daily prices for 6 PenCom-approved funds (Funds I, II, III, IV, V, IV Non-interest (Active)).
Returns benchmarks are yet to be established for pension funds but for indirect comparisons for the year 2022, the NGX All-Share Index (a measure of performance of the stock market) appreciated by 19.98%, the NGX Pension Index appreciated by 16.96%, inflation was 21.47% and MPR closed the year at 16.50%, having risen steadily through the year.
Trustfund Pensions Fund I highlights:
- Fund performance: up 8.58% in 2022, higher than 5.69% in 2021 but lower than the 14.63% in 2020. The fund’s 5-year average is 9.38%. The fund was launched in January 2018.
- Fund income: N53 million in 2022, up 38.56% from N210.42 million in 2021.
- Net gains from investing activities: N14 million in 2022, up 58.86% in 2021.
- Fund size: the size of the fund, measured by net assets, fell 6.31% to N598 billion from N2.773 billion. For the second consecutive year, net membership activities (inflow/outflow) were negative.
- Fund expense ratio: 2.29% in 2022, down slightly from 2.32%.
- Performance ranking: Fund was not ranked in our 2022 report due to the absence of the audited NAV per unit for the year.
Trustfund Pensions Fund II highlights:
- Fund performance: up 8.93% in 2022, compared to 9.02% in 2021.
- Fund income: N07 billion in 2022, up 7.98% from N33.41 billion in 2021.
- Net gains from investing activities: N82 billion in 2022, up 7.43% from N27.76 billion.
- Fund size: Fund II grew 7.80% to N16 billion. Growth continues to slow when put alongside the last 3-year double digits of 10.02% (2021), 19.07% (2020) and 12.34% (2019).
- Fund expense ratio: 1.73% in 2022, a slight increase on the 2021 figure of 1.69%. This means it was more expensive to manage the fund. The 5-year average is 1.99%.
- Performance ranking: Fund was not ranked in our 2022 report due to the absence of the audited NAV per unit for the year.
Trustfund Pensions Fund III highlights:
- Fund performance: up 9.19% in 2022, compared to 8.86% in 2021.
- Fund income: N21 billion in 2022, up 15.37% from N20.98 billion in 2021.
- Net gains from investing activities: N36 billion in 2022, up 15.43% from N17.64 billion in 2021.
- Fund size: Fund III grew 14.58% to N40 billion from N215.05 billion in 2021.
- Fund expense ratio: 1.56% in 2022, static in 2021 which was equally 1.56%.
- Performance ranking: Fund was not ranked in our 2022 report due to the absence of the audited NAV per unit for the year.
Trustfund Pensions Fund IV highlights:
- Fund performance: up 10.47% in 2022, compared to 9.38% in 2021. This fund had the highest performance of all Trustfund Pensions funds.
- Fund income: N48 billion in 2022, up 19.45% from N7.94 billion in 2021.
- Net gains from investing activities: N70 billion in 2022, up 19.59% from N7.27 billion.
- Fund size: Fund IV grew 10.72% to N37 billion. While the fund size continues to grow, the growth rate over the last 4 years has continued to fall, this being the lowest of the last 5 years.
- Fund expense ratio: 0.84% in 2022, up from 0.79% in 2021, arresting the decline of the last 4 years. The lower it goes the more fund returns RSA holders get to keep.
- Performance ranking: Fund was not ranked in our 2022 report due to the absence of the audited NAV per unit for the year.
Trustfund Pensions Fund V highlights:
- Registered Fund V RSA holders: 4,982 in 2022, up from 4,500 in 2021. Total Micro Pension RSA holders in 2022 were 89,327, giving Trustfund Pensions a 5.58% market share.
- Total assets in the fund: N82 million in 2022, up 11.06% from N12.44 million in 2021.
- Fund income: N31 million in 2022, up from N1.04 million in 2021.
- Net gains from investing activities: N05 million in 2022, up from N0.84 million in 2021.
- Fund performance: was 7.12% in 2022.
- Performance ranking: Fund was not ranked in our 2022 report due to the absence of the audited NAV per unit for the year.
Trustfund Pensions Fund VI – Non-Interest (Active):
- No audited accounts for 2022.
Watch out for our 2023 report detailing all fund rankings for 2022 in the 2023 Money Counsellors Annual Report on Pensions (MCARP 2023). Download the 2022 report here.
For more information and analysis, visit moneycounsellors.com
Coming out soon is our 2023 Annual Report on ALL Pensions. See our 2022 report: the Money Counsellors Annual Report on Pensions (MCARP 2022) for a full analysis of all Pension Fund Administrators (PFA) in one single document.
The report presents a holistic review of the last five years of activities of all PFAs, and the funds managed, including a 5-year summary of company and fund accounts, ratios, fund performances, fund performance rankings vs. peers, asset allocation, AUM ranking, RSA ranking and much more.
Our data and information provided are based on public data, our regulatory intelligence effort, our archives, and other public sources such as Fund Managers, FMAN, Pension Fund Administrators (PFAs), PenOp, etc.
We have taken care to ensure that the information is correct, but MoneyCounsellors neither warrants, represents, nor guarantees the information’s contents, nor does it accept responsibility for any errors, inaccuracies, omissions, or inconsistencies contained herein.
Because past performance does not predict future performance, it should not be used to make an investment decision.
We make no product recommendations. No news or research item on our website or in this document should be interpreted as a personal recommendation to buy, sell, or switch any investment.
Investments and the income generated by the rise and fall in value, so you may receive more or less than you invested.
This article is published in partnership with Moneycounsellors
