Tangerine APT Pensions Limited is the resulting entity formed from the merger of Apt Pension Funds Managers Limited and Tangerine Pensions Limited.
Analysis:
Tangerine APT Pensions ended the 2022 financial year with 264,947 RSA holders in the 7 publicly available RSA funds, an increase of 105,948 RSA holders from 158,999 accounts in 2021.
Additionally, assets under management for the 7 audited Retirement Savings Accounts (RSAs) funds published was ₦185.63 billion, up 75% from ₦105.79 billion in 2021.
Performance Analysis: Company
Revenue for the fiscal year ending on December 31, 2022, amounted to ₦2.34 billion, up 56% when compared to revenue of ₦1.50 billion recorded in 2021.
- Total expenses increased by 61% and to reach ₦1.90 billion from ₦1.18 billion in 2021.
- The company recorded a profit after tax (PAT) of ₦427 million, growing 67% from ₦256 million in 2021.
- As shareholders’ funds closed in 2021 at ₦2.85 billion, the company raised needed to increase its shareholders funds to the new regulatory minimum of ₦5.0 billion.
- For the year ended December 2022, shareholders’ funds closed at ₦6.71 billion following a capital injection.
- Return on equity (ROE) for the year 2022 was 6.36% compared to 8.98% in 2021.
Performance Highlights: Access RSA Funds (audited)
For the period ending on December 31, 2022, Tangerine APT Pensions Fund I appreciated of 8.52%, while Fund II appreciated by 10.98%. Fund III recorded a growth of 10.21%, Fund IV appreciated by 9.13%, and Fund V by 9.70%. The specialized funds, Fund VI – Non-Interest (Active) and Fund VI – Non-Interest (Retiree), experienced respective increases of 6.25% and 15.81%.
The pension industry does not currently benchmark the performance of any fund to any performance index. In the absence of any benchmark index to measure/compare fund performances for the year 2022, and to aid readers’ indirect comparison, the NGX All-Share Index (a measure of performance of the Nigerian 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.
Tangerine APT Pensions Fund I highlights:
- Fund I performance: up 8.52% in 2022, lower than the 9.89% in 2021 and still lower than the 11.62% in 2020.
- Fund I income was up 78% to ₦49.39 million in 2022, from ₦27.73 million in 2021 and ₦24.42 million in 2020.
- Fund size: the size of the fund, measured by net assets, grew 127% to ₦648.36 million from ₦285.76 million in 2021.
- Asset Allocation (31-12-2022): Fixed Income Instruments 59.58% (2021: 59.15%), Equities 13.07% (2021: 21.90%), Money Market instruments 18.43% (2021: 12.21%), Cash 0.75% (2021: 6.74), Others 8.17% (2021: 0.00%).
- Performance ranking: The fund performance for 2021 was ranked 2 out of 19 in our 2022 Annual Report on Pensions.
Tangerine APT Pensions Fund II highlights:
- Fund II performance: up 10.98% in 2022, compared to 9.27% in 2021 and 22.23% in 2020.
- Fund II income was up 57% to ₦10.89 billion in 2022. This was up on ₦6.92 billion in 2021 but down on ₦11.47 billion in 2020.
- Fund size: Fund II grew almost 82% to ₦126.22 billion from ₦69.45 billion in 2021.
- Asset Allocation (31-12-2022): Fixed Income Instruments 63.95% (2021: 71.78%), Equities 10.93% (2021: 16.69%), Money Market instruments 15.64% (2021: 5.30%), Cash 0.59% (2021: 0.26%), Others 8.89% (2021: 5.97%).
- Performance ranking: The fund performance for 2021 was ranked 1 out of 19 in our 2022 Annual Report on Pensions.
Tangerine APT Pensions Fund III highlights:
- Fund III performance: was 10.21% in 2022, compared to 7.04% in 2021 and 22.11% in 2020.
- Fund III income was up 92% to ₦4.67 billion in 2022 from ₦2.44 billion in 2021 and down on ₦4.9 billion in 2020.
- Fund size: Fund III grew 61% to ₦48.98 billion from ₦30.43 billion in 2021.
- Asset Allocation (31-12-2022): Fixed Income Instruments 74.89% (2021: 82.25%), Equities 4.00% (2021: 7.76%), Money Market instruments 15.74% (2021: 9.42%), Cash 0.20% (2021: 0.57%), Others 5.17% (2021: 0.00%).
- Performance ranking: The fund performance for 2021 was ranked 16 out of 19 in our 2022 Annual Report on Pensions.
Tangerine APT Pensions Fund IV highlights:
- Fund IV performance: up 9.13% in 2022, compared to 6.34% in 2021 and 16.80% in 2020.
- Fund IV income: ₦678.91 million in 2022, up 44% from ₦472.96 million in 2021 but down on the ₦633.57 million in 2020.
- Fund size: Fund IV grew almost 58% to ₦8.61 billion, from ₦5.46 billion in 2021.
- Asset Allocation (31-12-2022): Fixed Income Instruments 73.83% (2021: 78.96%), Equities 3.67% (2021: 3.63%), Money Market instruments 11.42% (2021: 14.72%), Cash 3.99% (2021: 2.69%), Others 7.09% (2021: 0.00%).
- Performance ranking: The fund performance for 2021 was not ranked in our 2022 Annual Report on Pensions as accounts were not made public.
Tangerine APT Pensions Fund V highlights:
- Registered Fund V RSA holders: Tangerine APT Pensions had 7,011 Fund V RSA holders as of 31 December 2022, up from a combined 4,527 in 2021. Total industry Micro Pension RSA holders in 2022 were 89,327, giving Tangerine APT Pensions a 7.85% market share.
- Total assets in the fund: ₦9.66 million in 2022, up from 1,462 million in 2021.
- Fund V income: Net fund income for the fund was ₦495,000, up from ₦69,000.
- Fund V performance: up 9.70% in 2022, compared to 4.00% in 2021.
- Asset Allocation (31-12-2022): Fixed Income Instruments 34.47%, Equities 0.32%, Money Market instruments 48.15%, Cash 17.06%, Others 0.00%. 2021 comparison data unavailable.
- The fund performance for 2021 was ranked 11 out of 14 in our 2022 Annual Report on Pensions.
Tangerine APT Pensions Fund VI – Non-Interest (Active) highlights:
- Income for the year was ₦55.52 million in 2022, up on ₦49 million in 2021.
- Fund performance: up 6.25% in 2022, compared to 1.67% in 2021.
- Fund size: Fund VI non-interest (Active) was ₦1.11 billion compared to ₦161 million in 2021.
- Asset Allocation (31-12-2022): Fixed Income Instruments 79.59%, Equities 11.18%, Money Market instruments 9.23%, Cash 0.00%, Others 0.00%. 2021 comparison data unavailable.
- Performance ranking: The fund performance for 2021 was ranked 11 out of 11 in our 2022 Annual Report on Pensions.
Tangerine APT Pensions Fund VI – Non-Interest (Retiree) highlights:
- Income for the year was ₦4.8 million in 2022.
- Fund size: Fund VI non-interest (Retiree) was ₦60.75 million, up from ₦10.64 million in 2021.
- Fund performance: up 15.81% in 2022.
- Asset Allocation (31-12-2022): Fixed Income Instruments 85.64%, Equities 4.74%, Money Market instruments 9.62%, Cash 0.00%, Others 0.00%. 2021 comparison data unavailable.
- Performance ranking: The fund performance for 2021 was ranked 5 out of 5 in our 2022 Annual Report on Pensions.
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.
This article was written by Michael Oyebola. For more information and analysis, visit moneycounsellors.com