Pension Funds Performance Report: January 2025

Pension Funds Performance Report: January 2025

The reset of pension funds’ performance officially began on 1 January 2025, setting the tone for the year ahead. As PFA investment managers strive to deliver optimal returns for contributors, January 2025 returns began to set the tone that may emanate over the year across the board.

This report provides an analysis of returns generated by PFA’s in the funds they manage. As of 30 November, PFA’s managed more than ₦22.26 trillion on behalf of RSA holders. Is your retirement fund growing optimally? Read on.

Fund I (Aggressive Growth Fund)

Top Performers

Norrenberger Pensions took the lead with an impressive 3.61% growth, significantly outpacing competitors. Veritas Glanvills Pensions secured second place with 2.89%, while PAL Pensions followed closely with 2.77%.

Above-Average Growth

The industry average for January stood at 2.23%, a benchmark met or exceeded by several PFA’s. FCMB Pensions (2.75%), Trustfund Pensions (2.74%), Stanbic IBTC Pension Managers (2.65%), CrusaderSterling Pensions (2.57%) and Leadway Pensure PFA (2.56%). Funds such as Nupemco (2.50%) and Tangerine APT Pensions (2.29%) delivered steady returns, providing stability for their contributors.

Lagging Performers

While some PFAs matched the average growth, others fell below it, including: Access ARM Pensions (2.10%), Fidelity Pension Managers (1.86%) and NLPC Pension (1.20%). At the bottom of the chart, NPF Pensions and Oak Pensions delivered growth of 0.79% and 0.16%, respectively. The month end unit price was not available for CardinalStone Pensions as such no performance was recorded for the period.

Insights for Contributors

The sharp variance in fund growth highlights the importance of staying informed when reviewing your RSA with your PFA. Contributors are encouraged to monitor performance trends regularly and align their choices with PFAs demonstrating consistent growth, strong management capabilities as well as making timely data available in accordance with regulations.

Looking Ahead

As we progress through 2025, fund managers will continue navigating market dynamics to maximise returns for contributors. Stay tuned for next month's update to track performance and industry developments.

Fund II (Balanced Fund)

Top Performers

CrusaderSterling Pensions emerged as the leader, delivering a remarkable 2.77% growth, the highest in the category. Tangerine APT Pensions followed with a solid performance of 2.33%, while Leadway Pensure PFA, Premium Pension and Trustfund Pensions recorded 2.24%, 2.24% and 2.23% respectively, rounding out the top performers.

Consistent Growth Above Average

The average growth for Fund II in January was 1.79%. Several PFAs exceeded this benchmark, including, Access ARM Pensions (2.03%), Veritas Glanvills Pensions (1.94%) and Norrenberger Pensions (1.92%).

Meeting the Average

Fund managers such as Nupemco, FCMB Pensions, and Stanbic IBTC Pension Managers demonstrated growth close to or marginally above the 1.79% average, showcasing stable management approaches.

Underperformers

A few PFAs fell short of the industry average, including: PAL Pensions (1.69%), NLPC Pension (1.39%) and Fidelity Pension Managers (1.32%). Whilst lower-tier performances were recorded by: Guaranty Trust Pension Managers (1.08%), NPF Pensions (0.90%) and Oak Pensions (0.89%).

CardinalStone Pensions unit price for 31 January was unavailable, preventing a comprehensive analysis.

Insights for Contributors

The diversity in fund growth rates reinforces the need for contributors to remain vigilant and informed about their PFA’s performance. Reviewing fund reports as well as your RSA statement of account regularly ensures that contributors align their retirement savings with managers delivering competitive returns.

Looking Ahead

The pension fund industry continues to adapt to changing economic conditions. Contributors should anticipate performance adjustments in the coming months as PFAs navigate market trends to optimise returns.

Fund III (Pre-Retirement Fund)

Top Performers

CrusaderSterling Pensions led with a growth rate of 2.31%, surpassing all other PFAs. PAL Pensions followed with an impressive 2.02% growth and Norrenberger Pensions secured third place at 1.86%.

Average Performance

The average growth rate for Fund III was 1.52%, as highlighted in orange in the chart. Guaranty Trust Pension Managers, Veritas Glanvills Pensions, Tangerine APT Pensions, Access ARM Pensions and Nupemco delivered growth rates hovering above 1.52%, the fund's average.

Below Average Performers

Were Trustfund Pensions (1.51%), Leadway Pensure PFA (1.45%), Stanbic IBTC Pension Managers (1.45%), FCMB Pensions (1.45%), and Premium Pension (1.42%). These managers are maintaining steady growth, though slightly below the top performers. Fidelity Pension Managers, Oak Pensions and NLPC Pension performed well, with growth rates of 1.21%, 1.13% and 1.03%, respectively.

Lagging Performers

NPF Pensions recorded the lowest growth at 0.54% whilst the unit price as at 31 January for CardinalStone Pensions was unavailable, preventing a comprehensive analysis.

Fund IV (Retiree Fund)

Fund IV delivered a consistent performance in January 2025, with an average growth rate of 1.28%. The fund's performance is characterised by a balanced distribution of growth rates among its managers.

Top Performers

CrusaderSterling Pensions led the pack with a growth rate of 1.68%, showcasing strong portfolio management and investment strategies. Access ARM Pensions and PAL Pensions followed closely with growth rates of 1.46% and 1.44%, respectively. Also demonstrating consistent performance.

Other top bracket performers were Trustfund Pensions, Guaranty Trust Pension Managers and Norrenberger Pensions posting growth rates of 1.43%, 1.40%, and 1.36%, respectively. These managers performed slightly above the fund's average, indicating steady growth. Veritas Glanvills Pensions, Premium Pension, and Oak Pensions also delivered respectable growth rates of 1.35%, 1.33%, and 1.33%, respectively.

Lower Performers

FCMB Pensions, Fidelity Pension Managers, and Nupemco posted growth rates of 1.23%, 1.23%, and 1.22%, respectively. While these rates are below the fund's average, they still indicate positive growth. Stanbic IBTC Pension Managers, Tangerine APT Pensions, and Leadway Pensure PFA had growth rates of 1.18%, 1.16%, and 1.14%, respectively, showing modest but stable performance.

Incomplete Data

CardinalStone Pensions had incomplete fund price data as the fund price as at 31 January was not available, which limited the ability to fully evaluate its performance.

Overall Analysis

Fund IV has maintained a steady performance, with an average growth rate of 1.28%. The funds offered a balanced mix of top and middle performers.

Fund V (Micro Pension)

Top Performers

PAL Pensions and NLPC Pension tied for the top spot with an impressive growth rate of 2.50% each. Trustfund Pensions followed with 2.07%, demonstrating solid performance.

Average Performance

The average growth for Fund V was 1.72%, with several PFAs performing close to or above this benchmark.

Lagging Performers

FCMB Pensions and Leadway Pensure PFA propped up the league table with returns of 1.24% each. Returns for CardinalStone Pensions and Oak Pensions were missing due to the unavailability of the month end unit prices which limited the ability to fully evaluate the respective funds’ performance.

Fund VI (A) - Non-Interest (Active)

Non-Interest Active Fund VI demonstrated varying levels of performance among the PFA’s in January 2025.

Nupemco emerged as the top performer with a substantial growth of 4.17%, far exceeding the average, followed by Tangerine APT Pensions and CrusaderSterling Pensions who delivered notable growth rates of 2.14% and 2.09%, respectively. Other strong performers were NLPC Pension and Veritas Glanvills Pensions, both at 1.91% and Norrenberger Pensions, with a growth of 1.89%.

The industry average growth rate for the fund stood at 1.85%. PFAs performing close to, but below the average were PAL Pensions (1.84%), Access ARM Pensions (1.79%), Leadway Pensure PFA (1.77%) and Stanbic IBTC Pension Managers (1.74%).

Much lower than the average performers were led by Premium Pension (1.59%), Guaranty Trust Pension Managers, recording a growth of 1.55%, while Fidelity Pension Managers and FCMB Pensions lagged significantly, with 0.83% and 0.71%, respectively.

Trustfund Pensions and Oak Pensions had incomplete fund price data and were not included in the overall comparison.

Fund VI - Non-Interest (Retiree)

Performance Report: RSA Pension Fund VI - Non-Interest (Retiree) – January 2025

The Non-Interest Retiree Fund VI recorded a mixed performance across PFA’s. Fidelity Pension Managers led the industry with a growth rate of 1.93%, significantly above the average. Norrenberger Pensions and NLPC Pension followed with growth rates of 1.81% and 1.80%, respectively. Other PFAs that outperformed or matched the average were Premium Pension (1.58%), and Access ARM Pensions (1.57%).

The industry average growth rate was 1.51%.

Notable below-average performers were, Stanbic IBTC Pension Managers (1.50%), PAL Pensions and Leadway Pensure PFA, both at 1.48%. Tangerine APT Pensions and Veritas Glanvills Pensions underperformed with growth rates of 1.35% and 1.30%, respectively.

FCMB Pensions was the lowest-performing fund, delivering a growth rate of 0.75%. Like the active fund, Trustfund Pensions and Oak Pensions had incomplete fund price data, excluding them from full analysis.

Note: This report is based on fund returns in January 2025 and is not personal advice. For more detailed and personalised advice, consult with a financial adviser.https://moneycounsellors.com/industry_trends#subtab-105