3RD QUARTER 2019 NEWSLETTER

FGN Bond 50%

Q3 2019 Macroeconomic and Financial Market Review Fund III Treasury Bills 21%

Equity 5%
Developments in the external environment continued to weaken in
Money Market 15%

Q3 2019 as oil prices softened on concerns over the negative impact Corporate Bonds 6%

of continued trade wars between the US and China. SG Bonds 2%

CPs 1%
On the domestic front, as the conclusion of the 2019 electoral cycle Cash 0%

blows away, the business of governing resumed in Q3 2019, starting

with the release and swift confirmation of President Muhammadu
Buhari’s cabinet without much uproar. This was followed by the Fund IV FGN Bond 52%
announcement of planned increased in Value Added Taxes (VAT) Treasury Bills 15%

from 5 percent to 7.5 percent and hike in electricity prices effective in Equity 2%

2020. In the wider economy, the sluggish growth pattern continued Money Market 18%

10%
in Q2 2019, as real GDP expanded by 1.94 percent, down from 2.01 Corporate Bonds

SG Bonds 1%

percent in Q1 2019, as slowdown in non-oil GDP offset the impact of CPs 1%

a rebound in oil production. Headline inflation continued to decline Cash 1%

(11.02 percent in August 2019) as fuel prices remained stable.

In terms of market performance, the unfavourable external picture
and weaker oil prices drove outflows from Nigerian stock market
with the Nigerian All Share Index (NSEASI) dipped 7.8 percent over
the quarter. In a bid to stem pressures on the external reserves and
support the Naira, the CBN tightened liquidity conditions across fixed
income markets to keep interest rates attractive for offshore
investors.
For the rest of the year, we expect improved oil production and
gradual recovery in economic activities as the government starts to
implement its budget.
Q3 2019 Investment Returns and Asset Allocations
In Q3 2019, we recorded positive returns across our flagship
funds as gains from our fixed income holdings more than offset
the impact of the decline in the equity market. This is testament
to the diversified nature of our investment portfolios.
31-Dec-18 30-Jun-19 30-Sept-19 QTD
Fund I 1.049 1.0903 1.1110 1.90%
Industry Update: Recapture Of Existing Contributors
In line with the Federal Government’s directive requesting all
data generating organisation to harmonise their respective
database with the National Identity Management Commission
(NIMC), the National Pension Commission has directed all
Pension Fund Administrators (PFAs) to update the records of
their Customers.
Consequently, and in line with the provisions of Section 23 (e)
of the Pension Reform Act (PRA) 2014, all Retirement Savings
Account Holders (both active and retired) have been advised
to approach their respective PFAs to provide complete and
accurate biodata alongside their National Identification
Number (NIN) and other relevant documents.
This initiative also known as the “Data Recapture Exercise”
seeks to protect clients against cybercrime and other
fraudulent intents and activities, amongst other advantages.
YTD This will be done using NIN as a unique identifier for validation
of respective Customers’ biodata, on NIMC’s database.
5.91%

Fund II 3.1387 3.2750 3.3391 1.96% 6.38% Conversely, the Data Recapture Exercise will also improve data
integrity through identification and elimination of multiple
Fund III 1.0203 1.0772 1.1050 2.58% 8.30%
registrations from the RSA Registration Database for existing
Fund IV 3.1399 3.2959 3.3853 2.71% 7.82% RSA holders and further streamline the registration process for
See below asset allocation across our various RSA Funds as at the new entrants into the Contributory Pension Scheme. Please
end of September 2019 note that the Data Recapture Exercise is a mandatory
requirement for all registered Customers under the
Contributory Pension Scheme.
Fund I Treasury Bills 44%

Money Market 17% Are you yet to recapture your data? kindly visit any of our
FGN Bonds 13%
offices closest to you or send an email to
Corporate Bonds 11%
info@sigmapensions.com.
Equity 8%

CPs 4%

Open/Closed Funds 2% Thank you for reading, we hope that you are better informed
Cash 1% about our multifunds portfolio. We look forward to positive
outcomes for the portfolios in 2019 and can assure
stakeholders that the high-performance team at Sigma
Fund II Pensions is as always; “Working For You”.
FGN Bond 53%

Treasury Bills 12%

MONEY QUOTES
Equity 11%

Money Market 11%

SG Bonds 3% “When a person with money meets a person

Corporate Bonds 8% with experience, the person with experience
Open/Closed Funds 3% winds up with the money while the person with
CPs 0% money winds up with the experience”.
Cash 0% Harvey MacKay