2024 Full Year Pension Funds Performance Report


14 January 2025

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

  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

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.