By Omobola Tolu-Kusimo
A Pension Fund Administrator (PFA), Radix Pension Managers, has said the Return on Investment (RoI) on pension funds under its management has continued on a positive trend as the PFA stands among the top PFAs whose RoI yields the highest returns.
The RSA Fund III RoI from January to August, this year for PFAs indicated that Radix emerged among the top five PFAs with high performance.
Fund III, one of the four distinct funds of the RSA Multi-Fund Structure introduced by the National Pension Commission (PenCom), allows a contributor to choose the fund through which his or her pension contributions would be invested by his or her PFA.
Also, RSA Multi-Fund Structure is designed for investing pension contributions based on the age and risk profiles of RSA holders.
The four distinct funds differ from one another based on age classification, namely, Fund I (less than 50 years, but based on request.
This fund is, particularly, suitable for contributors with a longer duration of employment as their fund can be invested in a higher yield); Fund II (default fund for contributors less than 50 years.); Fund III (50 years and above); Fund IV ( for retirees).
The rates of return on pension fund investments vary yearly, depending on prevailing economic conditions and performance of the financial markets, as well as the investment strategies of the various PFAs. However, the Commission monitors the PFAs to ensure that returns are competitive and fair.
Income generated from investing pension contributions is distributed into the RSAs of contributors based on the proportion of their assets.
Radix, however, recorded a 14.78 per cent return between January and August, this year on the investment made for contributors in this category.
Meanwhile, the PFA also performed well in the investment of funds under the RSA Fund I, Fund II and Fund IV with an average aggregate return of 9.28 per cent over the same period, which is above the industry average RoI.
Radix Pension Managers Managing Director, Mr Kunle Adeboye, in a statement, attributed the performance of the company’s funds to efficient investment strategy.
According to him, the economic review of the first half of 2020 showed a major hit on the economy from the impact of the pandemic that is ravaging the global economy, with weeks of lockdown witnessed in major economic nerves of the country.
He said despite the high volatility witnessed across markets, including the equities market and fixed income, coupled with instability in the economy in Quarter 1 2020, the RSA Fund I, II, III & IV had returned 3.11 per cent, 5.81 per cent, 7.64 per cent and 6.84 per cent in Q 1 2020.
Consequently, the funds have returned an average of 80.02 per cent from inception across funds.
He maintained that irrespective of events and trends across markets and the economy, Radix Pension Managers remains committed and resolute in ensuring that it attains optimum return on each fund through efficient investment strategy driven by sound research and risk management process.
Leave a Reply