Seventeen Pension Fund Administrators (PFAs) in Nigeria achieved an average return of 2.81% in January 2024, marking positive returns across the four retirement savings accounts tracked by Nairalytics, the research arm of Nairametrics.
Despite the economic challenges facing the country, including difficulties in the fixed income secondary market, PFAs demonstrated commendable performances. Higher auction yields on fixed income and a significant rally in the equities market contributed to the elevated returns observed during the review month.
An analysis of the data revealed that the RSA I fund recorded the highest return, achieving a growth of 4.11%, followed closely by the RSA II fund with 3.67%. RSA III and IV experienced returns of 2.1% and 1.38% respectively.
The performance highlights the typical investment relationship between risk and return, where higher risk correlates with higher returns, and vice versa. The riskiest fund, RSA I, yielded the highest return, while the least risky fund, RSA IV, reported the lowest return, aligning with the multi-fund structure principle.
Source: Nairametrics