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NPF Pension Managers’ Limited’s profit has hit a five year high as the Fund is effectively managing investors’ money as evidenced by an improvement in the return on equity, while it ranks eight positions on year to date return (YTD) basis on the Fund 2 categories.
The Pension Fund Manager has been an active player in the industry as it continues to magnify assets under management (AUM) and retirement savings accounts (RSA).
For the year ended December 2021, NPF Pension Managers’ net income increased by 7.05 percent to N1.43 billion, and that compares with N1.33 billion in 2020, N1.22 billion in 2019.
The fund manager is able to utilise shareholders’ resources in generating higher profit as the return on equity (ROE) increased to 18.10 percent in 2021 from 16.70 percent the previous year.
However, the ROE growth has not been growing steadily in the past five years, which laid bare the operating inefficiencies that undermines pension fund managers who operate in a tough and unpredictable macroeconomic environment.
It is important to note that rising inflation, huge energy costs, and devaluation of the currency are significantly responsible for ballooning operating expenses that prevent top line (Revenue) impressive performance from translating into robust bottom line growth.
NPF Pension Funds’ net profit margin fell to 18.90 percent in December 2021 from 19.90 percent the previous year while pre-tax margin reduced to 27.10 percent in the period under review from 31.70 percent the previous year.
Analysts say there it is high time fund managers embark on aggressive cost cut measures to bolster margins so as to deliver a high return to shareholders.
From January to July, NPF Pensions Fund has had a year to date of 5.50 percent, which makes it the eight best performing firm in the Fund 2 category.
Further analysis of the financial statement shows gross revenue was up 13.62 percent to N7.60 billion as at December 2021; its total assets hit N10.64 trillion, which is 1.40 percent lower than 2020’s N10.49 trillion.
NPF is the Pension Fund Administrator for the Nigeria Police Force dedicated to managing the pension of Nigerian policemen and women.