Stanbic IBTC Pension Managers Ltd is a subsidiary of Stanbic IBTC Holdings and a member of Standard Bank Group, the largest bank in Africa in terms of total assets. Stanbic IBTC Group offers end-to-end financial services to its clients which encompasses Banking, Stockbroking, Insurance, Trusteeship and Estate Planning, Pension, and Asset Management solutions.
As a Pension Fund Administrator, our RSA funds range from funds I – III for the RSA Active funds, Fund IV which is our Retiree fund and Fund V, our Micropension fund which is targeted at the informal sector. Amongst our active funds, Fund I has the highest allocation to variable income instruments and as such, is permitted by regulation to invest up to 75% of the fund assets in variable income instruments. Fund II has a lower risk profile than Fund I, and we are permitted to invest up to 55% of the fund assets in variable income instruments. The maximum allocation to variable income permitted in Fund III is 20%. It, therefore, follows that as you move from Fund I – III, the allocation to variable income reduces as most people become more risk-averse as they get older and approach retirement age.
Beyond the RSA funds, we also manage pension plans/retirement benefit funds for a variety of public and private organisations.
Below are some of the ways Stanbic IBTC Pension Managers is distinguished in the industry:
- Trusted to do the right thing: We are a trusted brand across financial services and investment management. As a demonstration of the trust in us, more than 7 million RSA holders trust us to manage their assets ethically and professionally. That’s why after careful due diligence, several institutions in the private and public sector chose Stanbic IBTC Pension Managers to manage their employees’ pension/gratuity plans. They are assured of our integrity and trust us to do the right thing even under challenging circumstances.
- Deliver sustainable long-term performance: At Stanbic IBTC Pension Managers, we focus on delivering long term value to all our clients, whether you just got your first job, you are the CEO of your company, or you are simply recommending us to the company you represent.
What is the long term return, you might ask? Well, we consider pension management a marathon and not a 100 meters sprint. The focus on long term is a pertinent point which many people tend to ignore. Many people would make pension contributions for an average of 30 years during their active work-life. The expectation, therefore, is that most people at retirement would be drawing on their accumulated pension assets to sustain themselves and fund their retirement aspirations. This is our view of the long term – helping you accumulate enough savings to have a fulfilling retirement and avoid the apprehension usually associated with this phase of life.
Our overall investment strategy is anchored on this philosophy of helping you “RetireWell”. At Stanbic IBTC Pension Managers, we believe that we have demonstrated this capacity by remaining in the top quartile of fund performance in the industry over the long term with a ten-year rolling average return of 10.98%. The ten-year track record of our flagship RSA Active Fund (Fund II) illustrates this point.
Our RSA Retiree Fund (Fund IV) has also remained in the top quartile of retiree funds for ten-years with a ten-year rolling average return of 13.57%. For our two older funds (Funds II & IV), we use the ten-year benchmark yardstick because it removes the element of luck and demonstrates consistency.
- We deliver exceptional customer service: We deliver top-notch customer service because we value all our clients. Our 24-hour multilingual call centre is always available to cater to client enquiries. In addition, we have deployed several other channels through which we can be reached such as our website, email, social media handle, USSD, Mobile app and across all our branches in key regions across Nigeria.
We also assist our clients with all the necessary information they require to access their retirement funds in line with the Pension Reform Act 2014 (“PRA 2014”). We are committed to ensuring our clients enjoy unparalleled customer experience that provides the assurance that you can access your hard-earned money (in line with the provision of PRA 2014) to meet your retirement goals.
Here are some professional tips to help you in selecting a pension fund administrator (PFA):
- Probe the time frame of the return measure you are shown. Shorter return time horizons are usually less of an indicator of a fund manager’s skill. Longer time frames reduce the element of luck. For the management of a pension fund, you want a fund manager that can demonstrate consistent performance that matches the time frame for which pension assets are needed. After all, it is a marathon, not a sprint.
- Ask about the performance of other funds managed by the PFA. Skill should be replicated across other funds managed by the fund manager. Experienced fund managers will likely have an established methodology that is replicated across other funds rather than luck on one fund.
- Ask for their current corporate clients for your review: Look out for large corporates or institutional clients being managed by the PFA you are considering. Large corporates usually have better knowledge and processes (or hire experts) for selecting PFAs and other professional service providers. Often, this demonstrates that corporate clients with substantial retirement benefit assets will most likely undertake extensive due diligence to protect the interest of their employees and safeguard their assets.
- Ask if the returns being shown have been audited: Confirm that the returns have been audited. This is because returns that have been audited can be relied upon due to the higher level of assurance provided by an independent auditor who has reviewed and certified the accounts.
- Ask for source data of the returns published: If you know how to compute returns, validate the computation by doing it yourself. Also, look for reliable sources of unbiased data like regulatory bodies who provide reliable data about PFA returns.
- Research the management team and their experience: Afterall, you want assurance that you are entrusting your pension asset to an experienced and tested investment management team. You may use online resources like LinkedIn (amongst others) to review the experience and integrity of the PFA’s top management.
- Review the history of the company in managing client assets: Experience in managing investments is key to sustainable future performance. Hence reviewing the history of the company, their culture and reputation, would help you select a PFA that would always look out for your interest.
- Review the risk management and compliance history of the PFA: All returns generated by a manager is linked to the amount of risk they are taking with your funds. However, the risk is not reported, only returns are, which means the picture is often incomplete. Hence, a good proxy is to check the compliance history of the fund manager. Compliance with regulatory directives and transparency of performance reporting are good indicators that the fund manager is confident of its processes and is not taking excessive risk with your retirement funds.
Find out more about Stanbic IBTC Pension Managers Ltd by visiting their website here.