Despite significant challenges in the pension industry ARM Pensions has impressed its shareholders with a 20 percent increase in dividend in the 2012 financial year to 6o kobo from 50 kobo per share in the 2011 period.
ARM Pension Managers (PFA) limited has also recorded revenues of N3.02billion during the financial year ended 28February 2013, which represents 33.00 percent growth from the previous year. Profit before tax and profit after tax for the year stood at N1.43billon and N1.04 billion respectively, representing growth rates of 51.2 percent and 78.4 percent respectively.
This strong performance was driven by the combined effect of new inflow of pension funds and strong investment performance. Overall, pension funds under management grew by 45.9 percent to N264.6 billion from N181.3 billion the previous year.
This performance translated into earnings per share of 88 kobo compared to 49 kobo the previous year.
Speaking at the Annual General Meeting, Sadiq Mohammed, managing director, ARM Pensions, said the company also crossed the over 500,000 benchmark for its retirement savings accounts (RSA.
Mohammed noted that the investment returns achieved by the ARM Pension Managers’ RSA Fund and ARM Pension Managers’ Retiree Fund were among the best in the industry standing with 15.51 percent and 14.42 percent net growth respectively as at the end of 2012,with over N285 billion under management as at 30 June 2013.
On the strategies to employ for the current financial year, Mohammed said, “we will ensure our investment are based on fundamental research, we will also analyze effectively to determine where and what to invest in”.
He equally noted that the company has put in place an efficient mechanism to monitor its investment and enable it make informed decisions on how to invest.
“We will also diversify our investment into real estate and trust funds to see how we can improve our returns on investment rather than just concentrating on equities and bonds,” he said.