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2022 PFA & RSA Pension funds audited annual accounts: NPF Pensions

21 June 2023

2023 PFA Corporate and Pension Fund Accounts for the year ended December 2022 – NPF Pensions

Background.

NPF Pensions, though part of the Contributory Pension Scheme (CPS), is a stand-alone Pension Fund Administrator (PFA) that caters only to the unique needs of the members of the Nigerian Police Force, managing and administering their pension and other welfare issues.

NPF Pensions Limited was incorporated on 21st October 2013 and is a Pension Fund Administrator (PFA) licensed under the provisions of the Pension Reform Act 2014.

Data collated from PenCom’s 2022 periodic reports shows that NPF Pensions ended the 2022 financial year with 323,096 RSA holders in the 4 RSA funds available, an increase of 20,852 RSA holders from 302,244 in 2021. Assets under management for the 4 audited Retirement Savings Accounts (RSAs) closed the year at N827.60 billion, up 18.08% from N700.91 billion in 2021.

Performance Analysis: Company

For the year ended December 31, 2022, total income grew by 20.93% to just shy of N9.20 billion, compared to N7.61 billion in 2021. The cost of managing the business rose by 10.84%, leading to a cost-to-income ratio of 66.78%, down from 72.86% in 2021. The five-year average ratio stands at 68.19%.

Profit After Tax (PAT) for 2022 increased by 47.75% to N2.12 billion, compared to N1.44 billion in 2021, whilst shareholders' funds closed the year at N7.90 billion, down slightly from N7.93 billion in 2021.

Performance Highlights: RSA Funds (audited)

For the year ended 31 December 2022 the NPF Pensions Fund I appreciated in value by 11.89%, Fund II appreciated by 11.15%, Fund III by 10.75%, Fund IV by 10.54%, NPF Pensions currently only offers Funds I – IV to its closed membership of RSA holders.

Returns benchmarks are yet to be established for pension funds but for indirect comparisons it is worth noting that for the year 2022 the stock market appreciated by 19.98%, the NGX Pension index appreciated by 16.96%, inflation was 21.47% and MPR closed the year at 16.50%, having risen steadily through the year.

NPF Pensions Fund I highlights:

· Fund performance: up 11.89% in 2022, higher than the 6.33% in 2021 but lower than the 15.37% in 2020. The fund’s four year average is 11.27%. The fund was launched on 14 September 2018 and had a partial year.

· Fund income: N371.22 million in 2022, up 92.84% from N192.51 million in 2021.

· Net gains from investing activities: N310.87 million in 2022, an 118.66% increase over 2021.

· Fund size: the size of the fund, measured by net assets, grew 26.02% from N2.43 billion to N3.07 billion.

· Expense ratio: 1.97% in 2022, down from 2.07%.

· Performance Ranking: 10 out of 19 in 2021.

NPF Pensions Fund II highlights:

· Fund performance: up 11.15% in 2022, compared to 6.32% in 2021. The fund’s 5 year average is 11.49%.

· Fund income: N65.50 billion in 2022, up 78.33% from N36.73 billion in 2021.

· Net gains from investing activities: N56.19 billion in 2022, up from N28.72 billion in 2021.

· Fund size: Fund II grew 18.35% to N575.15 billion from N485.97 billion in 2021.

· Expense ratio: 1.62% in 2022, down slightly from 1.65% in 2021.

· Performance Ranking: 11 out of 19 in 2021. The ranking for 2022 will be revealed later.

NPF Pensions Fund III highlights:

· Fund performance: up 10.75% in 2022, compared to 7.91% in 2021. The fund’s four year average is 12.13%. The fund was launched on 16 August 2018 and had a partial year.

· Fund income: N18.08 billion in 2022, up 58.37% from N11.42 billion in 2021.

· Net gains from investing activities: N15.67 billion in 2022, up 65.45% from N9.47 billion in 2021.

· Fund size: Fund III grew 26.84% to N169.89 billion from N133.94 billion in 2021.

· Expense ratio: 1.42% in 2022, down slightly on 2021 which was 1.45%.

· Performance Ranking: 11 out of 19 in 2021.

NPF Pensions Fund IV highlights:

· Fund performance: up 10.54% in 2022, compared to 7.91% in 2021. The fund’s 5 year average is 12.93%.

· Fund income: N8.67 billion in 2022, up 37.48% from N6.31 billion in 2021.

· Net gains from investing activities: N7.95 billion in 2022, up from N5.61 billion.

· Fund size: Fund IV grew 1.20% to N79.50 billion from N78.55 billion in 2021.

· Expense ratio: 0.90% in 2022, up slightly from 0.89% in 2021.

· Performance Ranking: 12 out of 19 in 2021.

Please note that all fund rankings for 2022 will be included in the 2023 Money Counsellors Annual Report on Pensions. Download the 2022 report here.

Our data and information provided is based on public data, our regulatory intelligence effort, from our archives, and other public sources such as from Fund Managers, FMAN, Pension Fund Administrators (PFAs), PenOp, etc. We have taken care to ensure that the information is correct, but MoneyCounsellors neither warrants, represents, nor guarantees the information's contents, nor does it accept responsibility for any errors, inaccuracies, omissions, or inconsistencies contained herein. Because past performance does not predict future performance, it should not be used to make an investment decision. We make no product recommendations. No news or research item should be interpreted as a personal recommendation to buy, sell, or switch any investment. Investments and the income generated by them rise and fall in value, so you may receive more or less than you invested.