Thursday, 9 November 2017

PFA as the next investment destination, the FCMB example with inherited retirement

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If pension is considered to be an invaluable source of income for retirees, and the federal government of Nigeria is so motivated, a retirement pension plan for 2004 has been introduced, it should not be surprising that at 13, the pension industry increased to 6.02 billion of under-management.
PFA as the next investment destination, the FCMB example with inherited retirement

Growth rate is quite unusual compared to the 125-year Nigerian banking sector, which is equivalent to just over 30 billion niggers.

In addition to the rapid growth of the sector, to the extent that pension fund managers have met the expectations of their users loss? What difference does Legacy Pension Limited distinguish? Why has FCMB Group Plc decided to increase its share from 28.2% to more than 88% in this retirement company?

Emefu Ibeayoka, a Market Analyst Opinion, writes in Abuja, Federal Capital Territory, about the history of FCMB's City Value Securities Limited and the first Merchant Bank company at the current diverse financial services group with a large investment knowledge. .

The recent announcement by NSE of its intention to increase participation in the pension sector seems to be a new logical step for the group, as the pension sector is expected to compete with the banking sector in terms of size and economic importance. in the next decade.

The Pension Reform Act has restored discipline and trust to retired people. It is also limited employers' pension liability and better administration of pension benefits. No pensioner has lost his savings

Poor management and industry continue to grow on the right track.

Much of this loan belongs to the National Pension Commission (Pencom). A quick stakeholder survey is likely to measure pension reforms and retirement scores in Nigeria. The only objection seems to come from capital market operators and infrastructure providers claiming that pension fund managers devote more resources to areas that need to be developed. Given the volatility of our stock market and the challenges of the privatization of the power sector (mainly due to cost-reflective tariffs), we should congratulate the PFAs and their regulators to be cautious in their investment strategy.

Other reports have shown that, despite last year's macroeconomic winds, Nigeria ASG in the pension sector grew by 16%, 1% more than last year's growth.

Despite the contraction in monthly contributions, the growth of assets under management is mainly driven by higher income on the fixed income market. The figures from May 2017, a survey on the retirement industry in Nigeria, showed that 12.1% of respondents decided to move to another AFP when the window was opened for transmission and 35.4% remained undecided. It is expected that the level of competition between the AFC in Nigeria will be strengthened by opening passageway and implementing the Pension Pension System (MPS).

The announced intention of the FCMB Group to acquire an absolute majority of Legacy Pension Limited will extend its service offer to a group that already offers commercial and retail banking, investment banking, asset management and other services. custody services.

The success of this transaction will increase the FCMB stake in the company at 88.2%, becoming its largest shareholder. This development follows months of negotiations, regulatory reviews, approvals and final powers from all jurisdictions.

It is rumored that FCMB Group Plc, which is holding, is one of the richest forecasts for financial services in Nigeria. Expanding your stake to engaging a controlling stake in PFI will surely open up a new growth and stability perspective in your revenue. 4 million bank customers, a network of more than 200 affiliates and its strong digital presence are a fertile ground for the rapid growth of this new addition to its portfolio.

On the other hand, Legacy Pension Managers Limited, while the conservative player with a strong presence in Abuzija and in the north, gradually increased its assets under management to more than 220 billion NZ. The company maintained strict investment policies and received decent returns from the very beginning. Incidentally, FCMB Mutual Equity Mutual

The Fund (known as the Legacy Equity Fund) won the BusinessDay Award for the Fund's Best Stock Fund in October 2017, with a return of 52% since the beginning of the year. It is expected that the 40-year investment experience of the FCMB will complement and increase the proposal of existing retirement plan managers to existing and potential clients.

Synergies with better distribution and investment experience led analysts to make the FCMB Group's decision to gain majority stake in pensioner's legacy as a significant development that not only hurt the pension sector but will also improve future business. FCMB group. Analysts predict that Legacy Pension Managers will be better positioned to increase their market share, effectively compete with the predictable transferability retirement savings account and enter the micropensões segment into the informal market that will benefit from distribution and distribution marketing commercial banks. group.

These are exciting times for the FCMB group, inherited pension managers and the retirement industry as a whole.

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