Return on Investment (ROI) of Pension Funds as of 30 September 2022
Please note: The figures presented below are not audited. For audited figures please refer to each fund and PFA report, available in the Literature & Downloads section of each respective fund on the moneycounsellors.com website.
According to guidelines from PenCom, “In keeping with the spirit of transparency and to ensure that all stakeholders, particularly RSA holders, have access to vital basic information”, there is a minimum amount of information that PFA’s must post on their websites. This includes Daily Unit Prices for funds (for the last 7 days); Structure of the investment portfolio for the Funds for the last 7 days; Periodic newsletter on the activities of the PFA and the pension industry; Latest approved audited accounts of the Company and the Funds. Also, the guideline on Rates of Returns on RSA funds mandates PFA’s to disclose “…the Net Assets Value per Unit of the Fund” in financial statements. With all this in mind, we are reliant that all information on each respective PFA’s website Is published by current guidelines, circulars, rules and regulations as issued by PenCom. It is also international best practice to do so.
Fund I is accessible strictly by formal request of the contributor and only for those aged 49 years and below.
As of 30 September 2022 the Stanbic IBTC Pensions Fund I was the best year-to-date performer in this fund category, returning 10.33% YTD followed by First Guarantee Pension Fund I (9.16%) and ARM Pensions Fund I (7.90%).
Fund II is the default fund for all active contributors that are 49 years and below.
Fund III is the default fund for active contributors that are 50 years and above.
The best-performing RSA Fund III as of 30 September 2022 was the First Guarantee Pension Fund III (8.18%), followed by the Sigma Pension Fund III (7.62%) and the Veritas Glanvills Pensions Fund III (7.50%).
Fund IV is strictly for retirees only.
Fund V is only for Micro Pension Fund contributors.
Whilst, not all PFA’s offer the Fund V, the performance of those that do and publish prices and other information on their website show that the best performing RSA Fund V as of 30 September 2022 was the Veritas Glanvills Pensions Fund V (9.98%), followed by the Stanbic IBTC Pension Managers Fund V (8.38%) and the NLPC PFA Fund V (7.66%).
Fund VI (Active) is for those that choose to have their contributions invested in Non-interest Money and Capital Market Products.
For the few that offer and publish information on the RSA Fund VI (Active), the best performing RSA Fund VI (A) as of 30 September 2022 was the NLPC PFA Fund VI (A) (15.38%) followed by ARM Pensions Fund VI (A) (7.13%) and Premium Pension Fund VI (A) (6.92%).
Fund VI (Retiree) is for those that choose to have their contributions invested in Non-interest Money and Capital Market Products.
For the few that offer and publish information on the RSA Fund VI (Retiree), the best performing RSA Fund VI (R) as of 30 September 2022 was the Premium Pension Fund VI (R) (7.56%), followed by Sigma Pensions Fund VI (R) (7.29%) and Veritas Glanvills Pensions Fund VI (R) (6.99%).
Returns of All Funds Since Inception of each fund to 30 September 2022 (Unaudited)
The table below has been compiled using the daily prices as displayed on each respective PFA’s website. However, they are unaudited. To see your fund’s audited returns from inception to 31 December 2021 go to the Literature and Download section of your fund on moneycounsellors.com and download the report.
Whilst we have shown the average performance of funds in each fund class, using averages to visualise the performance of a fund compared to others does no one any good other than visual optics and we are hopeful that pension funds will soon have benchmarks to that one can measure and compare performance. In the meantime, here are some metrics one can measure the funds against:
Metrics As at 30 September 2022
NGX All-Share Index 14.77%
NGX 30 Index 1.43%
NGX Pension Index 2.17%
3-Year FGN Bond (Jan 2026) 13.25%
5-Year FGN Bond (Feb 2028) 13.25%
10-Year FGN Bond (Jul 2034) 13.25%
As you will have noticed from the reports above, while a majority of PFA’s abide by the guidelines in publishing and being transparent in publishing information on their website and promptly, a few are late, fewer very, very late and most do not publish information that would help investors review and make informed decisions about their pension fund – factsheets, newsletters, asset allocation, NAV in audited accounts, etc. Providing information regularly and promptly helps existing customers and potential future ones truly understand a firm and Its investment strategy in managing pension funds. Things can only get better.
Download a report on the performance of your pension fund and your PFA by visiting the literature & Download section of your fund at moneycounsellors.com.