Pension funds remained remarkably resilient in the face of turbulent markets as they etched out some gains in April. A Quantitative Financial Analytics research indicates that pension funds continue to make slow but consistent growth although they were out performed by the NSE pension Index in the month of April.
All the pension funds ended the month with positive returns. PAL Emenite fund recorded the highest return of 3.4%, APT Pension Retiree Account gathered a 2.01% return while the highest return in the RSA category came from APT Pension Retirement Savings Account with 1.71%.
Source: Quantitative Financial Analytics
The resilience of the pension funds thrived on their long bond/fixed income exposures which underscores the virtues of diversification. Though the growth is slow but steady, it augurs well for investors because the key to successful retirement investing is in generating sustainable income while managing risk. Retirement investors need funds that can provide strong returns to address longevity risk or the risk of outliving assets but with downside resilience to address market risk. It is also imperative that investors should consider funds with strong track records as they (the investors) pursue superior retirement outcomes. With their low correlation to the market as well as low volatility, most of the pension funds possess the above mentioned qualities.
For information on the performance track records and risk characteristics of Nigerian pension funds visit www.mutualfundsnigeria.com
About Quantitative Financial Analytics:
Quantitative Financial Analytics is a group of financial analysts eagle-eyed on Nigerian funds (Mutual, Pension, Fixed Income Securities) with the mission to add tranperency and timely reporting to the fund industry. It is aimed at being a one stop shop for Nigeria’s Alternative investment products like mutual and pension funds
