The Nigerian pension industry has witnessed increased competitiveness since the National Pension Commission (PenCom) opened the transfer window, allowing Retirement Savings Account (RSA) holders to switch between Pension Fund Administrators (PFAs). This strategic shift has prompted PFAs to optimize investment strategies and deliver better returns.
So far, over 38,000 RSA holders have taken advantage of the transfer window in less than a year, triggering a race among PFAs to outperform each other. In 2021, 22 licensed PFAs posted an average return on investment (ROI) of 7.41%, with 90% achieving growth across all four fund categories.
Top Performing PFAs in 2021
Stanbic IBTC Pension Managers
A subsidiary of Stanbic IBTC Holdings PLC, Stanbic IBTC Pension Managers printed a strong average ROI of 9.7%, with Fund I posting an 11.93% return. With 88.24% ownership by Stanbic IBTC Group, the firm maintains a robust investment strategy, allocating up to 75% in variable income instruments.
Veritas Glanvills Pensions (VG Pensions)
Licensed in 2007, VG Pensions is backed by Veritas Kapital Assurance Plc and Glanvills Enthoven. Operating from seven regional offices nationwide, the company posted an impressive average ROI of 8.73% in 2021.
Leadway Pensure
Leadway Pensure, with over 500,000 RSA accounts and N2 billion in authorized share capital, has established itself as a leading player. It recorded an average ROI of 8.22% across its four fund categories in 2021, fueled by solid investment expertise.
Sigma Pensions Limited
Sigma Pensions, majority-owned by private equity firm Actis, manages over 750,000 RSA accounts and returned a solid 8.67% average ROI in 2021. The firm continues to expand its reach and portfolio performance across Nigeria.
Conclusion
The rising competition in Nigeria’s pension sector is encouraging innovation and better returns for contributors. As PFAs strive to grow their asset base and client portfolios, contributors can expect enhanced service delivery and financial performance.
