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.