Despite the economic downturn, Guaranty Trust Pensions Managers Limited, a subsidiary of Guaranty Trust Holding Company (GTCO) Plc, has strongly grown assets under management (AUM) as it clings to the strategy of magnifying organically.
The Funds’ AUM was up 34.30 percent to N79.98 billion in December 2023, from N59.56 billion as at December 2022, according to data from the lender’s website.
Of course, the company is taking advantage of the country’s rapidly growing population and a talented workforce to magnify its earnings.
With this impressive performance, Guaranty Trust Pension Managers is close to becoming the top 5 pension managers in Nigeria providing top class service to its customers.
It is worth noting that big banks are making a foray into the pension industry that is well capitalised and lucrative because of favorable demographic and effective laws.
Over the last decade, there have been a torrent of mergers and acquisition which shrunk the number of operators while a recapitalisation exercise by the regulator solidified the capital bases of firms who met the requirements.
In 2022, parent company GTCO acquired 100 percent shares in Investment One Pension Managers Limited at 0.15x AUM.
The industry AUM (RSA AUMs + Other non-RSA funds) has grown at a 22 percent CAGR between 2007 and 2021 (a 15-year period) to N13.42 trillion in 2021 (US$30.86bn, CAGR of 11 percent) on the back of rising number of RSA holders, new inflow of funds (contributions less withdrawals) into the funds and net investment gains, according to data from Chapel Hill Denham Limited.
Guaranty Trust Pensions Managers’ interest income was up 37.86 percent to N1.42 billion in the period under review from N1.03 billion the previous year.
Investment income grew by 39 percent year on year (Y-o-Y) from N1.03 billion in 2022 to N1.44 billion in 2023 benefiting from improved funding base driven by the synergy created through the Holding Company structure.
Total assets were N13.04 trillion as at December 2023, and it is expected to continue growing.
With a shareholders fund of N12.06 billion that exceeds the minimum capital requirements of a Pension Fund Administrator (PFA), the company has maintained a well-structured and adequately capitalised Pension Fund.
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