PFA & RSA Pension funds audited annual accounts: Radix Pensions

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

Background.

Radix Pensions Limited was acquired by MBO Capital Management Limited following the recapitalisation process in 2022. This made MBO Capital Management Limited a core investor.

Analysis:

Radix Pensions ended the 2022 financial year with 43,653 RSA holders in the 5 publicly available RSA funds, an increase of 5,208 RSA holders from 38,445 accounts in 2021. Assets under management for the 5 audited Retirement Savings Accounts (RSAs) funds published was ₦6.685 billion, up 30% from ₦5.139 billion in 2021.

Performance Analysis: Company

Revenue for the fiscal year ending on December 31, 2022, amounted to ₦393.07 million, up 152% when compared to revenue of ₦156.05 million recorded in 2021. Total expenses increased by 44% and to reach ₦515 million from ₦357.33 million in 2021.

The company recorded a reduced loss after tax of ₦124 million, when compared to the 2021 loss of ₦202 million. The sum of ₦4 billion was injected into the company following the 2022 recapitalisation exercise and shareholders’ funds closed 2022 ₦4.877 billion, still shy of the new regulatory minimum of ₦5.0 billion. Return on equity (ROE) for the year 2022 was -2.54% compared to -20.19 in 2021.

Performance Highlights: Access RSA Funds (audited)

For the period ending on December 31, 2022, Radix Pensions Fund I appreciated of 3.19%, while Fund II appreciated by 7.17%. Fund III recorded a growth of 8.57%, Fund IV appreciated by 8.20%, and Fund V by 5.66%.

The pension industry does not currently benchmark the performance of any fund to any performance index. In the absence of any benchmark index to measure/compare fund performances for the year 2022, and to aid readers indirect comparison, the NGX All-Share Index (a measure of performance of the Nigerian 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. 

Radix Pensions Fund I highlights:

·      Fund I performance: up 3.19% in 2022, lower than the 7.17% in 2021 and still lower than the 8.57% in 2020.

·      Fund I income was up 41% to ₦1.47 million in 2022, from ₦1.04 million in 2021 and ₦2.11 million in 2020.

·      Fund size: the size of the fund, measured by net assets, grew 91% to ₦32.22 million from ₦16.85 million in 2021.

·      Asset Allocation (31-12-2022): Data for 2022 unavailable.

·      Performance ranking: The fund performance for 2021 was ranked 16 out of 19 in our 2022 Annual Report on Pensions.

 Radix Pensions Fund II highlights:

·      Fund II performance: up 7.17% in 2022, compared to 5.91% in 2021 and 22.23% in 2020.

·      Fund II income was up 53% to ₦386.12 million in 2022. This was up on the ₦253.03 million in 2021 but down on ₦447.13 million in 2020.

·      Fund size: Fund II grew 28% to ₦5.02 billion from ₦3.92 billion in 2021.

·      Asset Allocation (31-12-2022): Data for 2022 unavailable.

·      Performance ranking: The fund performance for 2021 was ranked 12 out of 19 in our 2022 Annual Report on Pensions.

Radix Pensions Fund III highlights:

·      Fund III performance: was 8.57% in 2022, compared to 8.22% in 2021 and 27.58% in 2020.

·      Fund III income was up 82% to ₦109.05 million in 2022 from ₦59.99 million in 2021 and down on the ₦110.10 million in 2020.

·      Fund size: The size of fund III grew almost 30% to ₦971.1 million from ₦747.58 million in 2021.

·      Asset Allocation (31-12-2022): Data for 2022 unavailable.

·      Performance ranking: The fund performance for 2021 was ranked 7 out of 19 in our 2022 Annual Report on Pensions.

Radix Pensions Fund IV highlights:

·      Fund IV performance: up 8.20% in 2022, compared to 3.32% in 2021 and 18.48% in 2020.

·      Fund IV income: ₦82.51 million in 2022, up 348% from ₦18.40 million in 2021.

·      Fund size: Fund IV grew almost 44% to ₦658.42 million, from ₦458.44 million in 2021.

·      Asset Allocation (31-12-2022): Data for 2022 unavailable.

·      Performance ranking: The fund performance for 2021 was ranked 18 out of 19 in our 2022 Annual Report on Pensions.

 Radix Pensions Fund V highlights:

·     Registered Fund V RSA holders: Radix Pensions had 203 Fund V RSA holders as of 31 December 2022, up from 133 in 2021. Total industry Micro Pension RSA holders in 2022 were 89,327, giving Radix Pensions a 0.23% market share.

·     Total assets in the fund: ₦9.66 million in 2022, up from 1,462 million in 2021.

·      Fund V income: Net fund income for the fund was ₦12,000, down from ₦33,000.

·      Fund V performance: up 5.66% in 2022, compared to 5.62% in 2021.

·      Asset Allocation (31-12-2022): Data for 2022 unavailable.

·      The fund performance for 2021 was ranked 12 out of 14 in our 2022 Annual Report on Pensions.

Watch out for our 2023 report detailing all fund rankings for 2022 in the 2023 Money Counsellors Annual Report on Pensions (MCARP 2023). Download the 2022 report here.

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