Pension Funds 2024 Full Year Fund Performance Report

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By Micheal Oyebola

2024 was a challenging year for all of us in Nigeria in one form or another. For the key economic indicators, inflation (Dec ’24) stood at 34.80%, reflecting the ongoing economic pressures, the monetary Policy Rate (MPR) closed the year at 27.50%, whilst a 1-Year Treasury Bill offered a closing yield of 28.20%. The 5-Year FGN Bond (2029) and 10-Year FGN Bond (2034) provided yields of 21.19% and 18.10%, respectively. Amidst it all, the year saw significant performance across various indices and financial instruments, while on average, pension funds maintained steady growth, providing steady, reliable returns for investors (see below for individual fund type performance and ranking).

Performance Report: RSA Fund I (Aggressive Growth Fund) – Full Year 2024 (Unaudited)

Fund I (Aggressive Growth Fund)

Fund I’s, known for its supposed high-risk, high-return profile, showed varied performances across different PFAs in 2024. Below is an analysis of the unaudited returns for 2024

Top Performers

1. NPF Pensions emerged as the clear leader, delivering an impressive 38.87% return. This performance placed it significantly ahead of other PFAs, setting the benchmark for exceptional fund management in 2024.
2. Access ARM Pensions came in second, with a solid return of 21.76%, followed by Veritas Glanvills Pensions at 20.14%. Both PFAs have demonstrated consistent strategies that have outperformed the average.
3. FCMB Pensions and Leadway Pensure PFA also delivered strong results, with returns of 19.78% and 18.97%, respectively, placing them in the top quartile of performers.

Average Returns

The average return for Fund I’s across all PFAs stood at 17.78%, as highlighted in the chart below. This provides a benchmark for contributors to assess their PFA’s performance relative to the market. Notably, many PFAs clustered around the average, showcasing stable results.

Notable Mentions

• PAL Pensions and Stanbic IBTC Pension Managers achieved returns of 18.58% and 18.19%, just above the average, demonstrating their ability to sustain reliable performance.
• Fidelity Pension Managers, Oak Pensions, and Guaranty Trust Pension Managers followed closely, delivering returns of approximately 18%.

Underperformers

While the majority of PFAs delivered solid results, a few fell significantly below the average:

1. Tangerine APT Pensions was the lowest performer with a return of 7.01%, which may lead to concerns for contributors seeking growth.
2. Norrenberger Pensions and Nupemco delivered 10.68% and 12.21%, respectively, both substantially trailing the Fund I average.
3. CardinalStone Pensions (formerly Radix Pensions) also reported below-average returns of 14.35%.

Insights and Takeaways

• Diversified Strategies: PFAs like NPF Pensions have benefited from aggressive yet calculated investment strategies (going by a review of their asset allocation over the year, capitalising on favourable market conditions to achieve high returns.
• Steady Growth: Mid-tier performers such as PAL Pensions and Stanbic IBTC Pensions demonstrate the reliability of balanced investment approaches, appealing to contributors with moderate risk appetites.
• Room for Improvement: Underperforming PFAs may need to revisit their investment strategies to align with market trends and enhance returns for contributors.

What This Means for Contributors

For contributors in Fund I, the stark differences in performance highlight the importance of carefully selecting a PFA that aligns with your financial goals and risk tolerance. High performers like NPF Pensions and Access ARM Pensions provide excellent opportunities for significant growth, while lower performers may require re-evaluation of their strategies moving forward.

Final Thoughts

The 2024 performances across Fund I underscores the diverse outcomes of risk-taking in pension fund management. As contributors, staying informed and proactive in monitoring your PFA’s performance is crucial to securing long-term financial stability. With us now in 2025, all eyes are on how PFAs adapt their strategies to navigate new market challenges and opportunities.

Performance Report: RSA Fund II (Balanced Fund) – Full Year 2024 (Unaudited)

Fund II (Balanced Fund)

Fund II’s demonstrated strong performance across various PFAs for the full year 2024. The returns, as of December 31, 2024, show a wide range of performances, with the highest return being 31.56% and the lowest at 12.12%. The average return across all PFAs stood at 17.22%.

Top Performers:

1. NPF Pensions led the pack with an impressive return of 31.56%, significantly outperforming the average and setting a high benchmark for the year.
2. PAL Pensions followed with a robust return of 22.64%, showcasing strong management and investment strategies.
3. CrusaderSterling Pensions secured the third position with a return of 21.54%, indicating consistent performance.

Middle Tier Performers:

• Oak Pensions and Fidelity Pension Managers delivered solid returns of 20.17% and 18.53%, respectively, both above the average.
• Premium Pension and Access ARM Pensions were close to the average, with returns of 17.48%and 17.45%.

Lower Tier Performers:

• FCMB Pensions and CardinalStone Pensions (formerly Radix Pensions) posted returns of 16.95% and 16.56%, slightly below the average but still within a respectable range.
• Leadway Pensure PFA and Guaranty Trust Pension Managers had returns of 16.08% and 15.65%, respectively.
• Trustfund Pensions, Stanbic IBTC Pension Managers, and Veritas Glanvills Pensions recorded returns in the mid-14% range.
• Tangerine APT Pensions, Nupemco, and Norrenberger Pensions had returns in the low 13% range.
• NLPC Pension was the lowest performer with a return of 12.12%.

Conclusion:
The collection of Fund II’s have shown a diverse performance spectrum in 2024, with several PFAs delivering exceptional returns. NPF Pensions stood out as the top performer, while NLPC Pension lagged behind. The average return of 17.22% indicates a generally positive year for the funds, though there is room for improvement among the lower-performing PFAs.

Performance Report: RSA Fund III (Pre-Retirement Fund) – Full Year 2024 (Unaudited)

Fund III (Pre-Retirement Fund)

For 2024, Fund III’s delivered a mixed performance across PFAs.

Top Performers:

• NPF Pensions again emerged as the standout performer with a return of 30.68%, far exceeding the fund group average and setting a high benchmark for the year.
• Fidelity Pension Managers followed with a respectable 17.09% return, demonstrating consistent management and investment strategies.
• PAL Pensions and CrusaderSterling Pensions also performed well, posting returns of 16.28%and 16.17%, respectively.

Average Performance:

• The overall average return across all the funds was 15.31%. Several PFAs, including Access ARM Pensions (16.03%), CardinalStone Pensions (formerly Radix Pensions) (15.43%), and Guaranty Trust Pension Managers (15.02%), delivered returns close to this average, indicating steady performance.

Lower Performers:

• NLPC Pension was the lowest performer with a return of 10.23%, significantly below the average. 
• Other PFAs like Tangerine APT Pensions (12.42%) and Leadway Pensure PFA (13.05%) also posted returns below the average, suggesting areas for potential improvement.

Other Breakdown:

• Veritas Glanvills Pensions and Oak Pensions recorded returns of 14.87% and 14.85%, respectively.
• Trustfund Pensions and Premium Pension posted returns of 14.58% and 13.92%.
• Nupemco, Stanbic IBTC Pension Managers, and Norrenberger Pensions had returns in the low 13% range.

Key Insights:

• Fund III’s performances varied widely, reflecting different investment strategies and market conditions faced by each PFA.
• While NPF Pensions’ outstanding performance is noteworthy, the overall average indicates a generally stable year for the fund grouping.

Conclusion:
Fund III’s 2024 results highlight both high achievers and areas needing attention. Investors should consider these performances when evaluating their options, keeping in mind the diverse outcomes across PFAs.

Performance Report: RSA Fund IV (Retiree Fund) – Full Year 2024 (Unaudited)

Fund IV (Retiree Fund)

Fund IVs also concluded the year 2024 with a range of performances across PFAs.  Returns, as of December 31, 2024, showed a moderate performance spectrum, with the highest return being 18.05% and the lowest at 10.69%. The average return across all PFAs stands at 13.93%.

Top Performers:

1. NPF Pensions again led the funds with a return of 18.05%, significantly outperforming the average and demonstrating strong investment management tailored for retirees.
2. CrusaderSterling Pensions followed with a return of 15.41%, indicating consistent and reliable performance.
3. Access ARM Pensions and Oak Pensions also performed well, posting returns of 15.19% and 15.07%, respectively.

Middle Tier Performers:

• Fidelity Pension Managers and Veritas Glanvills Pensions delivered returns of 14.58% and 14.33%, respectively, both slightly above the average.
• PAL Pensions recorded a return of 14.10%, close to the average performance.

Lower Tier Performers:

• Stanbic IBTC Pension Managers, Trustfund Pensions, and Nupemco posted returns in the mid-13% range, slightly below the average.
• Premium Pension, FCMB Pensions, and Norrenberger Pensions had returns in the low 13% range.
• Leadway Pensure PFA, CardinalStone Pensions (formerly Radix Pensions), and Tangerine APT Pensions recorded returns just above 12%.
• Guaranty Trust Pension Managers and NLPC Pension were the lowest performers with returns of 12.02% and 10.69%, respectively.

Key Insights:

• Fund IV’s performances were relatively stable, with most PFAs clustering around the average return of 13.93%.
• NPF Pensions’ standout performance highlights the potential for higher returns, while the lower performers indicate areas where strategies may need re-evaluation.

Conclusion:
Fund IV’s 2024 performances reflect a generally steady year, with a few PFAs achieving notable success. While NPF Pensions led the way, the overall average suggests a balanced performance across the board. Investors should consider these results when assessing their investment choices, keeping in mind the varying outcomes across different administrators.

Performance Report: RSA Fund V (Micro Pension) – Full Year 2024 (Unaudited)

Fund V (Micro Pension)

Fund V concluded the year 2024 with a diverse range of performances across PFAs who offered the fund. The returns, as of December 31, 2024, show a broad spectrum, with the highest return being 21.66% and the lowest at 6.23%. The average return across all PFAs stands at 16.58%.

Top Performers:

1. Access ARM Pensions led the fund with an return of 21.66%, showcasing strong investment strategies and management.
2. Trustfund Pensions followed closely with a return of 21.05%, indicating robust performance.
3. Stanbic IBTC Pension Managers and PAL Pensions also delivered strong returns of 19.44% and 19.05%, respectively.

Middle Tier Performers:

• NLPC Pension and Guaranty Trust Pension Managers posted returns of 18.89% and 18.39%, respectively, both above the average.
• Premium Pension and CrusaderSterling Pensions recorded returns of 18.14% and 16.85%, respectively.
• Fidelity Pension Managers and Veritas Glanvills Pensions had returns of 16.64% and 16.47%, close to the average.

Lower Tier Performers:

• FCMB Pensions and Norrenberger Pensions posted returns of 14.04% and 13.20%, respectively, below the average.
• Tangerine APT Pensions recorded a return of 12.08%, significantly lower than the average.
• CardinalStone Pensions (formerly Radix Pensions) was the lowest performer with a return of 6.23%, indicating a need for strategic review.

Key Insights:

• Performances across Fund V’s varied widely, with several PFAs achieving high returns, while others lagged significantly.
• Access ARM Pensions and Trustfund Pensions stood out as top performers, demonstrating the potential for high returns within the fund groupings.
• The lower performers, particularly CardinalStone Pensions (formerly Radix Pensions), highlight areas where investment strategies may need re-evaluation.

Conclusion:
Fund V’s 2024 performance reflects a mix of high achievers and underperformers. While Access ARM Pensions and Trustfund Pensions led the way, the overall average suggests a generally positive year for the funds. Investors should consider these results when making investment decisions, keeping in mind the varying outcomes across different administrators.

Performance Report: RSA Pension Fund VI – Non-Interest (Active) Fund – Full Year 2024 (Unaudited)

Fund VI (A) – Non-Interest (Active)

The Fund VI – (Non-interest active fund), concluded 2024 with a range of performances across PFAs. Returns, as of December 31, 2024, showed a broad spectrum, with the highest return being 20.63% and the lowest at 7.40%. The average return across all PFAs stood at 16.25%.

Top Performers:

1. CrusaderSterling Pensions led the funds with a return of 20.63%, demonstrating strong investment strategies and management.
2. Trustfund Pensions followed closely with a return of 19.83%, indicating robust performance too.
3. PAL Pensions and Stanbic IBTC Pension Managers also delivered strong returns of 18.55% and 17.62%, respectively.

Middle Tier Performers:

• FCMB Pensions and NLPC Pension posted returns of 16.85% and 16.78%, respectively, both above the average.
• Access ARM Pensions and Premium Pension recorded returns of 16.68% and 16.44%, respectively.
• Veritas Glanvills Pensions and Norrenberger Pensions had returns of 15.79% and 15.14%, close to the average.

Lower Tier Performers:

• Nupemco and Guaranty Trust Pension Managers posted returns of 15.06% and 14.47%, respectively, below the average.
• Tangerine APT Pensions recorded a return of 7.40%, significantly lower than the average, indicating a need for strategic review.

Key Insights:

• Fund VI – Non-Interest (Active) performances varied widely, with several PFAs achieving high returns, while others lagged significantly.
• CrusaderSterling Pensions and Trustfund Pensions stood out as top performers, demonstrating the potential for high returns within the funds.
• The lower performers, particularly Tangerine APT Pensions, highlight areas where investment strategies may need re-evaluation.

Conclusion:
Fund VI – Non-Interest (Active) 2024 performances reflect a mix of high achievers and underperformers. While CrusaderSterling Pensions and Trustfund Pensions led the way, the overall average suggests a generally positive year for the funds. Investors should consider these results when making investment decisions, keeping in mind the varying outcomes across different administrators.

Performance Report: RSA Pension Fund VI – Non-Interest (Retiree) – Full Year 2024 (Unaudited)

Fund VI – Non-Interest (Retiree)

Fund VI – Non-Interest (Retiree), a non-interest fund tailored for retirees, concluded 2024 with a range of performances across PFAs. Returns, as of December 31, 2024, show a moderate performance spectrum, with the highest return being 18.54% and the lowest at 9.34%. The average return across all PFAs stood at 14.83%.

Top Performers:

1. Premium Pension led the funds with a return of 18.54%, demonstrating effective management and investment strategies tailored for retirees.
2. Access ARM Pensions followed with a return of 16.86%.
3. Stanbic IBTC Pension Managers and PAL Pensions also delivered respectable returns of 16.65%and 15.97%, respectively.

Middle Tier Performers:

• FCMB Pensions posted a return of 14.42%, slightly below the average but still within a reasonable range.
• Norrenberger Pensions and Veritas Glanvills Pensions recorded returns of 13.54% and 13.30%, respectively, indicating steady but lower performance.

Lower Tier Performers:

• Tangerine APT Pensions was the lowest performer with a return of 9.34%, significantly below the average and suggesting a need for strategic review.

Key Insights:

• Fund VI – Non-Interest (Retiree)’s performances were relatively stable, with most PFAs clustering around the average return of 14.83%.
• Premium Pension’s standout performance highlights the potential for higher returns within the Non-Interest (Retiree) fund grouping.
• The lower performers, particularly Tangerine APT Pensions, indicate areas where investment strategies may need re-evaluation to better serve RSA holder’s needs.

Conclusion:
Fund VI – Non-Interest (Retiree)’s 2024 performances reflects a generally steady year, with a few PFAs achieving notable success. While Premium Pension led the way, the overall average suggests a balanced performance across the board. Retirees and stakeholders should consider these results when assessing their investment choices, keeping in mind the varying outcomes across different administrators.

Note: This report is based on unaudited fund returns from January to December 31, 2024, and is not personal advice. For more detailed and personalised advice, consult with a financial adviser.