20-05-2016 by 
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Pension funds remained remarkably resilient in the face of turbulent markets as they etched out some gains in April. A Quantitative Financial Analytics research indicates that pension funds continue to make slow but consistent growth although they were out performed by the NSE pension Index in the month of April.

All the pension funds ended the month with positive returns. PAL Emenite fund recorded the highest return of 3.4%, APT Pension Retiree Account gathered a 2.01% return while the highest return in the RSA category came from APT Pension Retirement Savings Account with 1.71%.

Pension FundsBeg NAVEnd NAVGainReturn
APT Pension Retiree Fund 2.08 2.12 0.04 2.01
Crusader Pension Retiree Fund 2.06 2.09 0.03 1.48
ARM Pension Retiree Fund 2.26 2.29 0.03 1.14
First Guarantee Pension Retiree Fund 2.12 2.14 0.02 0.98
Future Unity Glanvills Pension Retiree Fund 2.17 2.19 0.02 0.96
Stanbic IBTC Pension Retiree Fund 2.52 2.55 0.02 0.94
Sigma Pension Retiree Fund 2.32 2.34 0.02 0.92
AXA Mansard Pension Retiree Fund 1.89 1.91 0.02 0.92
Pension Alliance Retiree Fund 2.13 2.14 0.02 0.89
NLPC Pension Retiree Fund 2.12 2.14 0.02 0.86
Premium Pension Retiree Fund 2.2 2.22 0.02 0.86
Trustfund Pension Retiree Fund 1.98 2 0.02 0.84
OAK Pensions Retiree Fund 2.26 2.27 0.02 0.82
Legacy Pension Retiree Fund 2.15 2.16 0.02 0.75
ANCHOR Pension Retiree Fund 2.06 2.07 0.02 0.74
Fidelity Pension Retiree Fund 2 2.02 0.01 0.7
AIICO Pension Retiree Fund 2.11 2.12 0.01 0.66
Investment One Pension Retiree Fund 1.56 1.56 0.01 0.6
         
Pension Alliance Emenite Gratuity Fund 1.72 1.78 0.06 3.4
Pension Alliance Guiness Fund 1.78 1.81 0.03 1.89

The NSE Pension Index returned 3.76% in April thereby beating all the pension funds, although the index has a YTD return of -11.66% while the NSE Allshare index made negative 0.96% in April bringing its YTD return to -12.5%. On a YTD basis, therefore, pension funds have continued to leave the index in the dust.

NSE Pension Index694.03720.1526.123.76
         
NLPC Pension Retirement Savings Account 2.57 2.59 0.02 0.63
Future Unity Glanvills Pension Retirement Savings 2.03 2.05 0.02 0.94
Investment One Pension Retirement Savings Account 1.79 1.8 0 0.17
Sigma Pension Retirement Savings Account 2.38 2.4 0.02 0.98
Crusader Pension Retirement Savings Account 2.86 2.9 0.05 1.58
Premium Pension Retirement Savings Account 2.93 2.95 0.03 0.9
OAK Pensions Retirement Savings Account 1.98 2 0.01 0.74
AXA Mansard Pension Retirement Savings Account 1.96 1.99 0.03 1.35
First Guarantee Pension Retirement Savings Accoun 2.4 2.43 0.02 0.99
APT Pension Retirement Savings Account 1.95 1.98 0.03 1.71
Pension Alliance Retirement Savings Account 2.52 2.54 0.02 0.98
ANCHOR Pension Retirement Savings Account 1.81 1.82 0.01 0.76
ARM Pension Retirement Savings Account 2.85 2.88 0.03 1.04
Trustfund Pension Retirement Savings Account 2.49 2.5 0.01 0.57
Legacy Pension Retirement Savings Account 2.75 2.77 0.02 0.72
Fidelity Pension Retirement Savings Account 2.06 2.08 0.02 1.03
Stanbic IBTC Pension Retirement Savings Account 2.75 2.78 0.03 1
AIICO Pension Retirement Savings Account 2.26 2.28 0.02 0.73

The resilience of the pension funds thrived on their long bond/fixed income exposures which underscores the virtues of diversification.  Though the growth is slow but steady, it augurs well for investors because the key to successful retirement investing is in generating sustainable income while managing risk. Retirement investors need funds that can provide strong returns to address longevity risk or the risk of outliving assets but with downside resilience to address market risk. It is also imperative that investors should consider funds with strong track records as they (the investors) pursue superior retirement outcomes.  With their low correlation to the market as well as low volatility, most of the pension funds possess the above mentioned qualities

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