Please note: The figures presented below are not audited. For audited figures please refer to the ‘Financials’ Section and the Money Counsellors 2022 Report on each individual fund and PFA, available in the Literature & Downloads section of each respective fund on the moneycounsellors.com website.
October was interesting month. The CBN announced it would be scrapping and redesigning high denomination Naira notes, starting 15 December 2022 and ending 31 January 2023. There’s been a lot of commentary and so far the after effects have been that our already dysfunctional official FX market (more demand than supply, leading to rationing, etc.), the unofficial FX market has gone ballistic with the
N:$ rate sprinting from $710:N1 to $860:N1 as at the time of this report. We posit this saying from John Maynard Keynes “the markets can remain irrational longer than you can remain solvent”. Protect your wealth, your investments, and your money.
On the economic front, the NBS reported that inflation had risen to 20.77% from 20.52% a month on. Inflation was 17.01% in December 2021. Are you getting richer or poorer due to inflation?
On the corporate front as regards pension funds, Access Corporation PLC announced the purchase of Sigma Pensions. In August, the company had also announced that it had received regulatory approval to acquire First Guarantee Pension. Access Corporation will now merge both PFA’s and going by the 2021 audited numbers, with a combined AUM of
N757,966bn, will become the 4th largest PFA behind Stanbic IBTC Pensions ( N3,923,654bn), ARM Pensions ( N915,782bn) and Premium Pension ( N763,034bn).
Turning to the markets, yields on fixed income securities continued to rise. See table below. We have selected a representative sample of 3-year, 5-year, 10-year and 20-year bonds:
NGX All-Share Index (ASI) index fell 10.58% in October. Year to date it remains positive at 2.63% and the NGX Pension Index lost 2.62%. YTD this index has lost 0.51%. (The NGX Pension Index tracks the top 40 listed companies in terms of market capitalization and liquidity).
Performance of Pension Funds to 31 October 2022
Fund I is accessible strictly by formal request of the contributor and only for those aged 49 years and below.
For the month of October 2022 NPF Pensions Fund I led the performance table, with a return of 1.28% followed by Veritas Glanvills Pensions Fund I (0.72%), then Crusader Sterling Pensions Fund I (0.87%).
Fund II is the default fund for all active pension fund contributors that are 49 years and below.
Fund III is the default fund for active contributors that are 50 years and above.
Year to date, the best performing RSA Pension Fund III as at 31 October 2022 was the First Guarantee Pension Fund III (9.17%), followed by the Veritas Glanvills Pensions Fund III (8.37%) and the Leadway Pensure PFA Fund III (8.23%).
Fund IV is strictly for retirees only.
For the month of October 2022 Leadway Pensure PFA Fund IV led the performance table with a return of 2.58%, followed by CrusaderSterling Pensions Fund IV (0.94%), then Stanbic IBTC Pension Fund Managers Fund IV (0.93%).
Fund V is only for Micro Pension Fund contributors.
Whilst not all PFA’s offer Fund V, the performance of those that do and publish prices and other information on their website shows that the best performing RSA Pension Fund V as at 31 October 2022 as follows:
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 table and chart depict the respective fund performances in October and year to date:
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 table and chart depict the respective fund performances in October and year to date:
Global view of the investment returns of All funds since inception of each respective fund to 31 October 2022 (Unaudited)
The tables below have been compiled using the daily prices as published and displayed on each respective PFA’s website. However, they are unaudited. They present a global view of returns of ALL funds for October 2022, year to date and since inception. To see your fund’s audited returns since inception to 31 December 2021 go to the Literature and Download section of your fund on moneycounsellors.com and download the report.
Pension Fund Returns Since inception to October 2022
NB: As of 4 November 2022, Guaranty Trust Pensions had not updated it prices since 30 September 2022, Sigma Pensions had not uploaded the 31 October 2022 prices. The website will be updated as soon as figures are available.
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.