Nigeria’s Pension Fund Sees Moderate Growth in Q1

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Nigeria’s RSA Pension funds posted a median gain of 3.76% during the first quarter of 2018, according to financial analysis firm, Quantitative Financial Analytics. Despite falling yields, this performance was better than what it was in the corresponding period of last year when the median return was 2.67%.

Though Q1 2018 looks better than Q1 2017, the annualized median return for 2018 (16%) is much lower than the YTD return of 23% recorded in 2017. This is quite understandable given the trend in yields, and the fact that over 80% of pension fund assets are allocated to bonds and fixed income instruments, which are the instruments mostly affected by the current trend in the yield curve. The 3.76% median return for the quarter fell within a wide range of individual pension fund returns of between 4.89% and 2.82%.

All the pension funds being monitored and analyzed by Quantitative Financial Analytics made gains in Q1 2018. The greatest performer in the RSA category is Arm RSA Pension fund which ended the quarter with 4.89% return, followed by Stanbic IBTC RSA Pension fund’s 4.8% representing annualized returns of 21% and 20.6% respectively.

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