There are several criteria you can use to measure the performance of Pension Fund Administrators but in this piece we are concentrating on the Return on Investment (ROI) for Retirement Savings Account (RSA) holders when Pension Fund Administrators (PFAs) investment the funds.
There are four funds under the Mutifund structure and its necessary that you are familiar with the fund you fall under and the fund you can voluntarily move to, if it performs better than your current fund over a reasonable period of time.
The four Funds under the Multi Fund Structure are Fund I, Fund II, Fund III, and Fund IV (Retiree Fund), and below are the parameters that Pension Fund Administrators use to allocate Retirement Savings Account holders under the funds.
Fund I is a special but optional Fund that Retirement Savings Account (RSA) holders who are below 50 years old can request to be moved to. It has the highest exposure to stock among the Funds under the Multifund structure, meaning that a higher percentage of Fund I is invested in buying shares of companies compared to other funds. If you have requested to be moved to Fund I, you should pay particular attention to the performance of Fund I but also constantly have a look at the performance of Fund II to be sure you made a right choice moving to Fund I.
Fund II is the default fund under the Multifund structure for RSA holders who are below 50 years old. If you are below 50 years old and you have not specifically requested that your PFA should move you to Fund I, then you will be in Fund II. You should pay particular attention to the performance of Fund II but you should also monitor the performance of Fund I to assist you in deciding whether to move to Fund I or not.
Fund III is default Fund for RSA holders who are 50 years & above but have not retired. Multifund structure gives PFAs the right to move anybody who is 50 years & above from Fund II to Fund III but the law also allows you to request to be moved back to Fund II if you choose to. If you are 50 years & above and you have not requested to be moved back to Fund II, then you will be in Fund III. You should pay attention to the performance of Fund III and keep an eye on the performance of Fund II to enable you decide whether to move back to Fund II.
Fund IV – The Retiree Fund
This is the Retiree Fund. All RSA holders that have retired are automatically moved to Fund IV and Retirees can not move to other Funds. Fund IV has the lowest exposure to equity.
Now that we are clear on the fund you fall under, you can now proceed to monitor the performance of your Fund with your Pension Fund Administrator (PFA). Below you will see the growth in percentage for the Month of August 2019 for the funds in all Retirement Savings Accounts for all Pension Fund Administrator in Nigeria.
Performance of Fund I for all Pension Fund Administrators (PFAs) in Nigeria for August 2019.
Performance of Fund II for all Pension Fund Administrators (PFAs) in Nigeria for August 2019.
Performance of Fund III for all Pension Fund Administrators (PFAs) in Nigeria for August 2019.
Performance of Fund IV for all Pension Fund Administrators (PFAs) in Nigeria for August 2019.
PensionNigeria monitors the performance of Fund I, II, III & IV for all PFAs in Nigeria on monthly basis, 1st quarter, Half Year, 9 Months, Yearly and 3 years.
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Do you want to know more about the MultiFund Structure, check out our MultiFund Structure Executive Summary here
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