Best performing pension funds in Nigeria for February 2025 

Sixteen Pension Fund Administrators (PFAs) in Nigeria which printed an average return of 1.64% in the month under review across the four retirement savings accounts, was led by Pension Alliance Limited, OAK Pensions Limited, and Trustfund Pensions Plc.

This is according to the data compiled and analyzed by Nairalytics, the research arm of Naijaonpoint.

The Nigerian pension industry has experienced significant growth in recent years, with various pension fund administrators (PFAs) offering competitive returns on investment.

A breakdown of the data showed that the RSA I fund recorded the highest return in the month under review with a growth of 2.10%, followed by the RSA II fund with 1.85%. RSA III and IV recorded returns of 1.36% and 1.26%, respectively.

The latest monthly performance data reveals an interesting trend that aligns with the fundamental principle of investing: the risk-return tradeoff. This concept suggests that investments with higher risk levels tend to generate higher returns, while those with lower risk levels typically yield lower returns.

A closer look at the performance data shows that RSA Fund I, which carries the highest level of risk, achieved the highest return for the month.

Conversely, RSA Fund IV, which has the lowest risk profile, recorded the lowest return. This outcome is consistent with the multi-fund structure, which is designed to offer a range of investment options with varying levels of risk and potential return.

Below is the breakdown of the best-performing pension fund managers in the month of February 2025, based on their different Retirement Savings Account (RSA) funds.

ARM Pension Managers Limited, Leadway Pensure PFA Limited and Radix Pension Fund Managers Limited (CardinalStone Pensions) were not included in this analysis due to incomplete information.

In terms of the average performance of the PFAs in February 2025, Pensions Alliance Limited led the list with an average return of 2.73%, followed by OAK Pensions Limited (2.55%) and Trustfund Pensions Plc with a return of 2.17%.

This fund has the highest allocation of risky or variable income instruments and participation is strictly upon a formal request from a contributor but NOT accessible to Retirees and active contributors of 50 years and above. The primary goal of RSA Fund I is to maximize investment returns, with 20%   – 75% of its assets allocated to variable income instruments.

The RSA Fund I was the highest performer in the month being reviewed, with an average return of just 2.10%.

In February 2025, OAK Pensions Limited led the list with the highest RSA Fund I return, posting a 4.94% gain. This was followed by Pension Alliance Limited with a 4.68% return and Trustfund Pensions Plc, which recorded a 2.72% gain for the month.

All 16 PFAs recorded a positive return in their RSA Fund I.

This is the default fund for RSA holders of 49 years and below. It is balanced and suitable for middle-aged contributors as well as those with a medium-risk appetite. It is designed to be less risky with reduced allocation to variable income instruments compared to Fund I.

This is the default fund for RSA holders of 49 years and below. It is balanced and suitable for middle-aged contributors as well as those with a medium-risk appetite. It is designed to be less risky with reduced allocation to variable income instruments compared to Fund I.

Pensions Alliance Limited topped the list of PFAs with the highest RSA Fund II return, achieving a 3.30% gain. TrustFund Pensions Plc followed closely with a 2.93% return, while Guaranty Trust Pension Managers posted a 2.68% gain for the month.

The RSA Fund II, a balanced fund aimed at preserving capital while seeking moderate long-term returns, posted an average return of 18.5% in the month under review, making it the second-highest performing category.

This is the default fund for RSA holders between the ages of 50 and 60 years. It is a conservative fund that is designed for contributors close to retirement and contributors with a low-risk appetite. Although it is suited for contributors between the ages of 50 and 60 years, younger contributors may opt to participate in this fund category.

OAK Pensions Limited led the pack with the highest RSA Fund III return, achieving 1.98%, followed by FCMB Pensions Limited with a gain of 1.77%. Trustfund Pensions Plc recorded a 1.65% return for the month.

In the review month, RSA Fund III delivered an average return of 1.36%.

The RSA Fund IV is exclusively designed for retirees and members of Funds I, II, and III are not eligible to buy into Fund IV, except upon retirement.

Additionally, once members are in Fund IV, they are not permitted to move out of it. In the review month, RSA Fund IV delivered an average return of 1.26%, making it the least-performing fund category.

Oak Pensions topped the list with the highest RSA Fund IV return at 1.29%, followed by Tangerine Apt Pensions, which posted a gain of 1.27%. Norrenberger Pensions recorded a 1.21% gain for the month.

According to the most recent data from the National Pension Commission (PenCom), the industry assets rose to N22.51 trillion in December 2024 from N22.26 trillion recorded in November 2024.

In the same vein, total RSA registrations increased to 10.58 million as of the end of December 2024 from 10.19 million recorded as of the beginning of the year, representing a 3.84% full-year increase.

The Multi-Fund structure is a system designed by the National Pension Commission (PenCom) to place RSA holders in one of four different funds based on their age and risk tolerance.