Stanbic IBTC Pension manages over N941b assets

                                                Dr Demola Sogunle

Stanbic IBTC Pension manages over N941b assets

 

Stanbic IBTC Pension Managers remains one of the leading lights in the pension industry which has over N3 trillion assets in its kitty. The company presently oversees about 30 per cent of the sector’s assets.

Its  Managing Director, Dr Demola Sogunle, in this interview, told Chuks Udo Okonta, that the firm has assets under management of over N941 billion and paid over N177 billion to retirees since 2006.

 

What is your organisation doing to maximise opportunities to be created by the open window?

 

The Transfer Window is yet to be opened however Stanbic IBTC Pension Managers is well prepared and is constantly improving on its service delivery to ensure our clients enjoy an incomparable and seamless pension experience from active working life to retiree status. Our current and future investment in both human and technological capacity is second to none in the industry. Hence, clients can be assured that they will continue to receive quality service and excellent customer experience.

 

What is your company’s present subscribers’ base and its market share of the industry?

 

The company has a client base of over one million  Retirement Savings Account (RSA) holders, as well as assets under management of over N941 billion. The company currently serves as an administrator for over 50 Approved Employee Schemes (Gratuity and Provident Fund Schemes) and total assets under such schemes are valued at over N141 billion.

 

How much has your firm paid to retirees so far?

 

Stanbic IBTC Pension Managers pays about N1.5 billion to about 26,000 retirees monthly and over N177 billion has been paid on time to such retirees since inception in 2006.

 

How is your organisation positioned to harness businesses at the informal sector?

 

Currently, the Contributory Pension Scheme (CPS) doesn’t cover individuals in the informal sector. The National Pension Commission however has recognized the need for this and is currently working on guidelines that will govern the inclusion of this sector of the economy into the scheme.

 

How has the operations of the pension recovery agents impacted your business?

 

Generally, we have seen an increased level of compliance in relation to the funding of RSAs by employers.

 

What is your organisation doing in product development?

 

The pension industry is practically a mono-product industry for now. However, plans are in the offing to allow for “Multiple Funds” which cater to different investment and risk appetites based on age stratification of the potential clients.

 

What is your organisation doing in deepening the penetration of pension in the country?

 

We strive to be at the forefront of new initiatives aimed at developing the industry. We are also actively involved in the activities of Pension Operators of Nigeria (“PenOp”). We engage with the regulators on innovative ideas aimed at moving the industry forward.

 

What makes IBTC Pensions tick?

 

At Stanbic IBTC, we are driven by our 5 key pillars which form the basis of our unique selling proposition. These are safety; track record, convenience, service and transparency. Stanbic IBTC Pension Managers is backed by strong and reputable financial institutions and is a member of the over 150 year-old Standard Bank. We have access to Stanbic IBTC group’s in-depth market research which boosts our research investment decisions. The Stanbic IBTC group has been managing funds for companies and individuals for close to 2 decades. We are in over 180 locations nationwide and have also provided account access via internet, telephone, email, SMS and ATM. We offer value added services such as pension payments, retirement planning advice, personal financial planning calculator, and financial reporting as well as providing transaction notification on all contributions, quarterly statements and quarterly newsletters to enable clients better understand the working of the CPS and management of their RSAs.

What is your organisation doing in the area of Corporate Social Responsibility (CSR)?

 

We have sponsored the renovation of four educational institutions across the country, Lagos. Through our membership of Stanbic IBTC, the organisation has also given back to the community by supporting the construction of the Ekiti’s State Universal Basic Education Board (SUBEB) office complex. Recently in the health category, the organisation also supported Osun State by providing free treatment and eye glasses in Oriade local government area.

 

 

What are your organisation likely challenges and how are you handling them?  

 

One of the major challenges of running a PFA is the low level of awareness and lack of confidence of the general public towards the Contributory Pension Scheme (CPS). Getting people signed on to the CPS can be challenging in this regard. Running a PFA also involves a huge capital investment as the operations are IT intensive and should be available nationwide. The retail nature of the CPS warrants the PFAs to be accessible by opening branches and locations to adequately service the customers. In addition, a large portion of the working class falls within the informal sector which is yet to gain access to the CPS and the scheme should be extended to this sector in order to increase the coverage ratio. Fortunately, the commission is currently working on the guidelines for extending the CPS into the informal sector.