Stanbic IBTC Pension Managers, Trustfund Pension lead recapitalisation trip with robust shareholders’ funds

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Chuks Udo Okonta

As the pension sector recapitalisation heats up, where Pension Fund Administrators (PFAs) scramble to raise their shareholders’ fund from N1 billion to N5 billion, some of them are already at the conform zone waiting for others to arrive. Such privileged companies include, Stanbic IBTC Pension Managers Limited, which has N64.45 billion shareholders’ fund and Trustfund Pension Plc, N12.49 billion according to their 2020 financial reports.

Data obtained from National Pension Commission (PenCom) 2020 annual report, which revealed the financial reports of the PFAs as at the end of year 2020, stated that Stanbic IBTC Pension Managers Limited and Trustfund Pension Plc, are closely followed by ARM Pension Managers Limited with N9.04 billion shareholders’ fund; NPF Pension Limited, N8.01 billion; First Guarantee Pension Limited, N7.25 billion and Leadway Pension Limited, N7.06 billion.

Others are; Premium Pension Limited, N5.31 billion; Crusader Sterling Pension Limited, N4.67 billion; Sigma Pension Limited, N4.34 billion; Pension Alliance Limited, N4.29 billion; FCMB Pension Limited, N3.48 billion; Fidelity Pension Managers Limited, N3.44 billion and NLPC Pension Fund Administrators Limited, N3.23 billion.

APT Pension Fund Managers Limited, N2.68 billion; AIICO Pension Fund Managers Limited, N1.76 billion; OAK Pension Limited, N1.73 billion; AXA Mansard Pension, now Tangerine Pension Limited, N1.70 billion; Veritas Glanvill Pension Limited, N1.53 billion; IEI Anchor Pension Managers Limited, N1.37 billion; Investment One Pension Managers Limited, N1.26 billion and Radix Pension Managers Limited, N985.68 million.

The increase of the shareholders’ fund of PFAs from N1 billion to N5 billion, according to PenCom was aimed at boosting PFAs capacity in terms of operational efficiency and service delivery.

PenCom in a circular entitled: Revised Minimum Share Requirement for Licensed Pension Fund Administrators (PFAs), dated April 29, 2021 and sent to managing directors/chief executive officers of all licensed pension fund operators, said: “The increase in the minimum regulatory capital is necessitated by the need to improve the capacity of PFAs, in terms of operational efficiency and effectiveness as well as service delivery.”

The pension sector regulator noted that its board also approved a 12-month transition period, effective April 27, 2021, within which PFAs are to meet the new minimum capital.

“The board of the commission at its 48th meeting on April 27, 2021 approved the increase of the minimum regulatory capital (shareholders’ fund) requirement for PFAs from the current N1billion to N5 billion, unimpaired losses,” it posited.

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