By Meletus EZE
The Chief Executive Officer, Stanbic IBTC Pension Managers Limited, Mr Eric Fajeminsi,has said the multi-fund investment structure for workers will protect and improve the investment performance of Nigeria’s N7.8 trillion pension assets.
In a statement on Sunday in Lagos, Fajeminsi noted that the new structure superseded the previous “one-size-fits-all” investment structure.
He commended the National Pension Commission (PenCom) for evolving the multi-fund investment structure.
The IBTC Pension boss said that the structure which started on Sunday would resolve the challenge of asset-liability risks faced by the pension operators.
“The new multi-fund investment structure that kicked-off on July 1, would eliminate the asset and liability risks by aligning the age and risk profile of Retired Saving Account (RSA) holders to match four new investment funds.
“This will enhance contributors’ chance to earn improved returns on their pensions in proportion to their risk appetites.The different categories of the multi-fund investment structures are Fund One, Fund Two, Fund Three and Fund Four,” Fajeminsi said.
He noted that Fund One was targeted at workers aged 49 years and below willing to take more risks in the quest for higher returns.
“Fund Two is aimed at people who are aged 49 years and below and still working but are satisfied with moderate returns and levels of risks.
“Fund Three targets people of 50 years and above still working and have very low risk appetite while Fund Four are for retirees who have the lowest risk profile of all categories.
“Even if people retire, their pension should continue to work for them; there is the need to plan for a comfortable life in retirement,” Fajeminsi said.
He advised workers to plan well for their retirement.“A well-structured financial planning process must commence from the Day One on a first job, and it involves setting aside a part of current income into RSA. Stanbic IBTC Pension made a promise to our clients that they will retire very well. It is a promise we always keep,” he said.
According to him, Stanbic IBTC pension is serving over 1.6 million RSA holders, with assets under management in excess of N2 trillion.
