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).
Fund I (Aggressive Growth Fund)
Performance Report: RSA Fund I (Aggressive Growth Fund) - Full Year 2024 (Unaudited)
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
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
Underperformers
While the majority of PFAs delivered solid results, a few fell significantly below the average:
Insights and Takeaways
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.