Premium Pensions Caps Nigerian RSA Funds with 7.55% Return



At close of business, Premium Pensions Retirement Service Account (RSA) fund led the performance ranking of Nigeria’s RSA Pension funds for the first six months of the year 2018.

According to analysis by Quantitative Financial Analytics. The Premium Pensions RSA fund earned a 1.25 percent return in June, to extend its Year-To-Date performance to 7.55 percent.

ARM Pensions RSA, which led the pack last year, came second with 6.73 percent, while Crusader Pensions RSA and Stanbic IBTC Pensions RSA jointly took the third position with 6.22 percent. Every RSA fund made positive return ranging from 4.86 percent, recorded by AIICO Pensions RSA fund to 7.55.  Percent

This performance by Premium Pensions RSA is consistent with its 2017 performance, where it recorded 7.5 percent and a slight improvement over its 2016 performance of 6.11 percent for the first six months of the year.

Though that performance is unprecedented for Premium Pensions RSA, the 2018 performance so far is far below corresponding period performance for 2017 for most of the funds.

For example, by June 30th, 2017, APT Pensions RSA, which led the pack then, had generated a 12.59 percent return compared to its 2018 return of 5.02 percent.

The same scenario goes for Crusader Pensions RSA whose 2018 midyear return of 6.62 percent is much lower than its 2017 midyear return of 10.31 percent.

Though the performance is not as rosy as 2017, the NSE pension index did not do much better. The index which ended 2017 with a performance of 42.92 percent, only managed to generate 8 percent midyear return.

The positive but unimpressive performance of pension funds so far in 2018 may not be unconnected with equity market volatility amidst the declining stock prices that have come to characterize most of 2018.


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