Multi-fund Structure


This booklet provides you with the key investor information about the proposed Multi-Fund. It is not a marketing material. The information is required to help you understand the nature and features of the fund types to make a more informed investment decision.


A Key Information Booklet (KIB) is a ‘fact-sheet’ style document which outlines the investment objectives of each fund type and other practical information.


Multi-Fund is a structure that divides the Retirement Savings Account (RSA) and Retiree fund into Six (6) funds known as I, II, III, IV, V and VI. The Funds recognizes different demographic (age) profiles and risk appetites of registered contributors.


The objective of the Multi-Fund structure is:

  • Give contributors greater participation in the management of their funds by aligning their funds with their return profile.

The Multi-Fund Structure comprises of Six (6) funds namely:


 (Contributors aged 49 years and below)

  • Contributors must apply to move to this fund.
  • Investments in Variable instruments can be between 20% and 75% of the fund. The balance in the fund shall be invested in Fixed Income instruments.
  • This fund is particularly suitable for contributors with a longer duration of employment



 (Contributors aged 49 years and below)

  • This is the default fund from which contributors elect to move to other funds or are moved automatically upon the attainment of 50 years.
  • Contributors can move to Fund I depending on their investment plan.
  • A contributor who moves from Fund III to Fund II cannot move to Fund I.
  • Investments in Variable instruments can be between 10% and 55% of the fund. The balance in the fund shall be invested in Fixed Income instruments



 (Contributors aged 50 years and above)

  • For contributors aged 50years to 59years**
  • Contributors in Fund III can elect to move to Fund II
  • Investments in Variable instruments can be between 5% and 20% of the fund. The balance in the fund shall be invested in Fixed Income instruments

**A maximum of 70years for Professors and 75years for Judges



  • This fund is for those that have applied for retirement and chose the Programmed Withdrawal option.
  • Investments in Variable income instruments cannot exceed 10% of the fund. The balance in the fund shall be invested in Fixed Income instruments.


 (Micro Pensions)

  • This fund is for self-employed persons operating in the informal sector.
  • Contributions are flexible and may be paid daily, weekly, monthly or as may be convenient for you.
  • A maximum of 40% can be withdrawn for contingent purposes while 60% shall be for Retirement savings.
  • Investments in Variable income instruments cannot exceed 5% of the fund. The balance in the fund shall be invested in Fixed Income instruments.
  • Contributors in this fund can move to Funds I ,II and III.
  • Contributors in other funds cannot move to this fund.


(Non-Interest bearing Fund)

  • This fund is for contributors who desire their pension contributions to be invested in Sharia compliant Capital Market and non-interest bearing
  • Maximum exposure of 55% of portfolio value shall be invested in compliant variable income instruments such as Sharia compliant Ordinary Shares, Infrastructure Funds, Private Equity Funds and Open/Close Hybrid Funds.
  • The balance shall be invested in non-interest bearing instruments.


Active Choices

Contributors may elect to move between funds subject to the following restrictions:

Contributors in:

  • Fund I may move to Fund II
  • Fund II may move to Fund I
  • Fund III may move to Fund II
  • Fund I, II, III, IV and VI may not move to Fund V.
  • Fund IV are not allowed to move to any of the other Funds.


  1. 1
    Asset Allocation

    Apportioning a portfolio’s assets according to the guidelines instituted by PenCom pertaining to each fund.

  2. 2

    A pool of money contributed by the contributors

  3. 3

    A portfolio is a collection of investments

  4. 4
    Risk Appetite

    Risk Appetite is the quantum and type of risk an individual is willing to take with respect to his retirement savings.

  5. 5

    Is the money made or lost on an investment over a period of time.

  6. 6
    Variable Income Instruments

    Are investments fully tradable in a stock exchange such as Mutual Fund, Infrastructure Funds, Ordinary shares/stocks. They are investments in Private Equity approved by the Securities Exchange Commission (SEC).

  7. 7
    Fixed Income Instruments

    Are investments that provides a return in the form of fixed periodic payments such as interest and coupons. The principal is returned at maturity. Examples are Federal Government Bonds, Treasury Bills, State Government Bonds, Local Government Bonds, Corporate Debt Securities, Money Market securities and Infrastructure Bonds.

  8. 8
    Non-Interest Fixed Income

    Are investments that are non-interest earning such as Sukuk Bonds.

  9. 9
    Sharia Compliant Capital Market

    Ethical investments in sharia compliant companies listed on the Nigerian Stock Exchange (NSE).

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