Conservative Investment Philosophy - The ‘blue-chip’ investment portfolio
Shell Nig. Closed Pension Fund Administrator Ltd (SNCPFA) manages a diversified investment portfolio that consists of fixed income securities, listed equities and real estate.
The security of assets is maintained by a prudent and stringent investment strategy, which is set out in SNCPFA’ s Statement of Investment Principles (SIP) developed in collaboration with Shell Group Pensions and approved by the National Pension Commission (PenCom).
The statement emphasizes safety of assets and ensures that alignment between asset and liability profiles is balanced with the pursuit of investment returns. Consequently, SNCPFA only invests in the highest grade assets, conservative money market placements and other adequately researched investment opportunities that, as much as possible, match its liability profile.
Prior to the enactment of the Pension Reform Act, all investments were made in line with regulations such as the Trustee Investments Act 1957.
In addition, the filing of annual returns with the Joint Tax Board (JTB) up till December 31, 2004 ensured that the Fund continued to enjoy the tax exemption associated with being an ‘approved scheme’ as recognized by the JTB from 1996 till 2004.
By virtue of the PRA, effective January 2005, (the date of the commencement of transitional arrangements for the private sector under the PRA), SNCPFA is no longer required to make annual returns to the JTB.
SNCPFA has never received a qualified audit report in any of its years of existence.
The pension fund assets are segregated from the assets of the SPDC, and all transactions between both parties are carried out at arm’s length.
In compliance with the PRA, SNCPFA continues to render monthly returns to its regulator and to date has not received any sanctions or been reprimanded on any of its investment decisions.