Rhoda Adesilu

31 DECEMBER, 2021 TRUSTFUND PENSIONS LIMITED ...trust is our foundation.... ...trust is our foundation.... TRUSTFUND PENSIONS LIMITED ANNUAL REPORT & AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2021 ...trust is our foundation Trustfund Pensions Limited CONTENTS PAGE Mission and Vision i Board of Directors ii Notice of Meeting iii Chairman’s Statement vi Corporate Information xi Report of the Directors 4 Statement of Directors’ Responsibilities 10 Corporate Governance Report 11 Independent Auditors’ Report 12 Audited Financial Statements Statement of Profit or Loss and Other Comprehensive Income 15 Statement of Financial Position 16 Statement of Changes in Equity Statement of Cash Flows 17 18 Notes to the Financial Statements 19 Other National Disclosures Statement of Value Added 63 Five Year Financial Summary 64 Trustfund Pensions Limited OUR MISSION To create future value for the economically active workforce and assure a quality standard of living upon retirement. OUR VISION To be the leader in terms of market share To be competitive in terms of returns on funds under management To be the market maker in terms of setting benchmarks on best practices for funds management and customer service. OUR SACRED TRUST To protect against poverty at retirement. i Trustfund Pensions Limited BOARD OF DIRECTORS Prince Austin Enajemo-Isire Chairman, Board of Trustfund Pensions Ltd. Mrs. Oke Maduewesi Independent Director Barr. Nasr Adamu Musa Managing Director/CEO Mr. Mobolaji Balogun Dr. Michael Akabogu Dr. Kelly E. Nwagha Mr. Philip Southwell ii Trustfund Pensions Limited BOARD OF DIRECTORS Prof. Adesoji Adelaja Mr. Abidemi Oni Mrs. Eno Adetayo-Olugbemi Executive Director Mrs. Temitope C. Akinwale Comrade Joe Ajaero Mr. Uche Ihechere Executive Director iii Comrade Quadri Olaleye Dr. Akinsola Babatunde Claudius Executive Director Trustfund Pensions Limited NOTICE OF 13th ANNUAL GENERAL MEETING Notice is hereby given that the 13th Annual General Meeting of Trustfund Pensions Limited will hold on Thursday June 9, 2022, at Bauchi Hall, Transcorp Hilton Hotel, Abuja, at 10:00 a.m prompt to transact the following business: A. ORDINARY BUSINESS: 1. To receive the Audited Financial Statements for the year ended December 31, 2021, and the Reports of the Directors and Auditors thereon. 2. To declare Dividend 3. To authorise the Directors to fix the remuneration of the Auditors 4. To appoint / reappoint the External Auditors 5. To elect/re-elect directors 6. To disclose the remuneration of Managers of the Company B. SPECIAL BUSINESS/ ORDINARY RESOLUTION That the Directors’ fees for the year ended December 31, 2021, be and is hereby fixed at N14,333,333.36 (Fourteen Million Three Hundred and Thirty-Three Thousand Three Hundred and Thirty-Three Naira Thirty-six Kobo Only) GENERAL NOTES: Proxies: a. A member of the Company entitled to attend, and vote at the Annual General Meeting may appoint a proxy to attend and vote in his/her stead. A proxy need not be a member of the Company. b. All executed proxy forms should be completed and deposited with the Company Secretary at the registered office of the Company, Plot 820/ 821, Central business District, P.M.B 254, Garki, Abuja, not less than 48 hours before the time of the meeting. A blank proxy form is included in 2021 Annual Report and Accounts and is also available on the Company’s website. c. If executed by a corporate body, the proxy form must be sealed with the common seal of such corporate body. iv Trustfund Pensions Limited Dividends: If approved, a dividend of 15 kobo per share shall be payable to the members of the Company whose names appear in the Company’s Register of Members as of 31st December 2021. By Order of the Board Funmilayo Oluwo Company Secretary FRC/2017/NBA/- v Trustfund Pensions Limited PROXY FORM The 13th Annual General Meeting will be held at Bauchi Hall, Transcorp Hilton Hotel, Abuja on Thursday, June 9, 2022, at 10:00 am prompt. I/We (block capitals) __________________________________________________ Of ___________________________________________________________________ Being a member of the above-named Trustfund Pensions Limited hereby appoint ______________________________________________________ As my/ our proxy to attend and vote for me/ us and on my/ our behalf at the Annual General Meeting of the Company to be held on Thursday, June 9, 2022 10:00 and at any adjournment thereof. Dated this ________ day of __________ 2022 Shareholder’s Name _______________________________________ Shareholder’s Signature/ Seal______________________________ vi CHAIRMAN'S STATEMENT Distinguished Stakeholders, The prices of goods and services, measured by Ladies and gentlemen. the Consumer Price Index, increased by 15.63% in December 2021 when compared to 15.75 A very Glorious Morning to you all. recorded in December 2020. This was 0.13 per cent points lower than the rate recorded in I am delighted to welcome you all to the 13th Annual December 2020. General Meeting of your PFA, TrustFund Pensions Ltd., for the financial year ended 31st December 2021 being held Other factors that characterised the dwindling today at this conference hall of Transcorp. economy included falling external reserves, mass unemployment, declining GDP per capita, low- MACRO AND DOMESTIC ECONOMY interest rate on financial instruments, Permit me, before I present the financial performance of infrastructural deficits, tight FX liquidity, your PFA, to briefly share with you the macro and domestic continued devaluation of the naira, and global economic matters that occurred during the period under market volatility to name but a few. consideration. The Nigerian Pension industry was not left out of As the world witnessed the COVID-19 Pandemic which hit the economic ramification of the novel the globe in 2020 and severely affected global economic coronavirus which resulted in massive job loss. growth and financial markets beyond anything experienced According to the National Bureau of Statistics in nearly a century, 2021 experienced a slowdown of adverse (NBS), about 20% of the full-time workforce in economic effects as experts estimated that the virus Nigeria lost their jobs due to the COVID-19 reduced global economic growth to an annualized rate of pandemic in 2020, causing an increase in the -4.5% to -6.0% in 2020, with a partial recovery of 2.5% to unemployment rate from 27% to 33% between 5.2% projected for 2021. Global trade was estimated to have the second and the fourth Quarters of 2020. fallen by 5.3% in 2020, but was projected to grow by 8.0% in Furthermore, 2021. moribund companies, who resorted to laying-off employees to survive, The Nigerian economy suffered its own share of the coupled with the lack of new business economic turbulence ushered in by the coronavirus as the opportunities country recorded one of the highest inflation rates investment further limiting new job prospects, worldwide. The country experienced a steady increase in its brought about a decline in pension remittances inflation rate, which rose to 15.63% in December 2021 and an increase in the number of unfunded compared to 15.40% in November 2020. Retirement Savings Accounts (RSAs). vii and reduction in capital Trustfund Pensions Limited CHAIRMAN'S STATEMENT - CONTINUED Despite these economic uncertainties, the pension industry The session identified was able to cushion the adverse effects as pension funds initiatives centred around digitalisation, overall were invested in fixed income securities for most of 2020. growth, According to data from the National Pension Commission efficiency. customer several experience, potential and cost- (PenCom), PFAs invested N7.3 trillion in Federal Government Bonds, treasury bills got N642 billion, agency Trustfund Pensions commenced the re-design of received N6billion, N100billion went to Sukuk Bonds, Green its Mobile Application, USSD code, Chat robots, Bonds got N11billion, while N150billion was invested in and WhatsApp for Business and proposed the state government securities, as well as other classes of introduction of the Trustfund Interactive Virtual assets. These investment windows acted as a buffer against Assistant (TIVA) platform to rejuvenate its brand the negative impact of the coronavirus pandemic, which identity and enhance the customer experience weakened the naira and pushed the equities market’s main while index, All Share Index, to an eight-year low. integration to allow for scalability. In November 2020, the entire pension industry landscape The company also repositioned its human experienced a new paradigm shift with the launch of the capital strategy restructuring the current transfer window, also known as Retirement Savings Account staffing to a 70:30 outward/inward ratio thereby Transfer System (RTS) by PenCom in accordance with increasing the number of customer interfacing Section 13 of the Pension Reform Act, 2014 with the outlined staff through the redeployment of back-office objectives of improving service delivery to RSA holders, staff to meet the rising needs of our customers facilitating full and equitable pension assets portability spread across the country and increase customer within the pension industry, seamless transfer of RSAs from satisfaction. reviewing the various IT system one PFA to another, and enhancing ethical competition amongst the PFAs. To achieve end-to-end automation, a paperless environment, client-facing initiatives, non- As the year began to beam promising signs of recovery, your processing within branches, and selling off non- PFA was ushered into a defining moment where pivotal yielding assets, the Company introduced a new decisions had to be taken to curtail the effect of RTS strategy to create a paperless environment outflows and recover lost grounds. which will be followed by acquiring an Enterprise Resource Planning (ERP) solution to THE FUTURE OUTLOOK drive all automated process across all channels. Considering the above, Trustfund Pensions, in its swiftness, considered leveraging digital transformation to meet Your PFA paid a total of N27.60billion to 28,584 changing business and market requirements, by creating customers as benefits payment from 1st January new and modifying existing business processes, culture, and to 31st December 2021, bringing the total procedures to deliver optimum customer experience. At the number of customers whose benefits have been end of 2021, a strategy retreat was held in Lagos to paid by the Company since inception, to 162,760 determine the overall company objective for the future. and the total sum paid to N183.18billion. viii Trustfund Pensions Limited CHAIRMAN'S STATEMENT - CONTINUED Trustfund Pensions has invested in its corporate Head It is my pleasure to formally welcome these office building, which is located in the centre of business distinguished ladies and gentlemen to the Board. activities in the Federal Capital Territory, Abuja. This is projected to yield huge investment returns for the company. The ten (10) storey edifice with modern infrastructure is a masterpiece that is intended to attract revenue through rents or leasing of some floors to multinational companies and high rising business organizations, while Trustfund occupies 3 floors within the premises. During the year, the under-listed Directors retired: 1. Mrs. Osaretin Demuren (Retired Independent) 2. Mr. Ismail Agaka (Retired) 3. Comrade Ayuba Wabba (Retired) 4. Mrs. Helen Da-Souza (Retired MD/CEO) 5. Mr. Andrew Onyilokwu (Retired ED Finance) BOARD OF DIRECTORS AND MANAGEMENT CHANGES FINANCIAL PERFORMANCE The Board was reconstituted and ushered in the current Your Company weathered through the stormy year, crop of highly knowledgeable members with wealth of growing its total Funds Under Management (FUM) to experience in the financial industry led by my humble self N779.8billion as at 31st December, 2021 as against as your Chairman. N709.1billion recorded in December 2020. Profit Before Tax (PBT) of the Company grew from Below is a list of current board members: N2.3billion in 2020 to N2.94billion as at 31st 1. Prince Austin Enajemo-Isire Chairman December, 2021. Our Market share as at December 2. Mr. Musa Nasr Managing Director/CEO 2021 was 6.07%, bringing our market share position 3. Mr. Mobolaji Balogun Non-Executive Director to 5th out of the 22 PFAs in the Industry. 4. Mrs. Oke Maduewesi Independent Non-Executive Director ( 2022) The 5. Dr. Michael Akabogu Non-Executive Director N13.5billion (as against N12.5billion in 2020) which is 6. Mr. Phillip Southwell Non-Executive Director above the Regulatory minimum shareholders' fund 7. Dr. Kelly Nwagha Non-Executive Director requirement of N5billion. 8. Prof. Adesoji Adelaja Non-Executive Director 9. Mrs. Temitope Akinwale Non-Executive Director The Company’s Profit After Tax (PAT) for the year 10. Comrade Quadri Olaleye Non-Executive Director grew from N1.7billion recorded in December 2020, to 11. Mr. Abidemi Oni Non-Executive Director N2.1billion as at 31st December 2021. 12. Comrade Joe Ajaero Non-Executive Director Company Shareholders' Fund stood at DIVIDEND EXECUTIVE MANAGEMENT The Company also A dividend of 15 kobo per share amounting to welcomed a new executive N300,000.000 has been proposed by the directors. If management team, led by Barr. Musa Nasr as the approved, the dividend shall be payable to Managing Director/CEO who took over from Mrs. Helen shareholders in the Company’s Register of Members Da-Souza. Other members of the team are: at the close of business on 31 December, 2021. 1. Dr. Tunde Akinola Executive Director [Operations] 2. Mr. Uche Ihechere Executive Director [Finance & 3. Mrs. Eno Adetayo- Corporate Services] Executive Director [Business Olugbemi Development & Marketing] ix Trustfund Pensions Limited CHAIRMAN'S STATEMENT - CONTINUED CLOSING Distinguished shareholders, I am once again delighted to I wish to express my gratitude and appreciation to you, reiterate that even in the face of the challenging my dear colleagues on the Board, for your support and operating environment, TrustFund has maintained its cooperation during the period under review which is a culture of outstanding performance and dividend fundamental ingredient to sustaining the business payment, as it strives to occupy the industry leadership growth and remain focused on greater exploits. position. Distinguished Ladies and Gentlemen, on behalf of the We will continue to evolve bigger, better, and faster Board, I thank you most sincerely for your support and approach to our service delivery and drive dominance of continued trust and confidence. The future though our product offerings with an eye on the future growth. challenging, remains very bright for us all. Your PFA will continue to attract and develop the best Thank you talents, encourage diversity, and provide the best environment for a performance-driven organizational culture. Prince Austin Enajemo-Isire Board Chairman x Trustfund Pensions Limited CORPORATE INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2021 Directors: Prince Austin Enajemo-Isire Chairman (Representing NSITF)- Appointed w.e.f.* 31 May, 2021 Mr. Ismail Agaka Chairman (Representing NSITF)- Resigned w.e.f.* 31 May, 2021 Mr. Musa Nasr Managing Director/CEO - Appointed w.e.f.* 31 May, 2021 Mrs. Helen Da-Souza Managing Director/CEO - Resigned w.e.f.* 31 May, 2021 Dr. Michael Akabogu Representing NSITF - Appointed w.e.f.* 31 May, 2021 Mrs. Temitope Akinwale Representing NSITF - Appointed w.e.f.* 31 May, 2021 Dr. Kelly Nwagha Representing NSITF - Appointed w.e.f.* 31 May, 2021 Comrade Ayuba Wabba Representing NLC - Resigned w.e.f.* 31 August,2021 Comrade Joe Ajaero Representing NLC - Appointed w.e.f.* 31 May, 2021 Mr. Mobolaji Balogun Representing Chapel Hill Denham Management Limited Prof. Adesoji Adelaja Representing Chapel Hill Denham Management Limited Appointed w.e.f.* 31 May, 2021 Mr. Abidemi Oni Representing Chapel Hill Denham Management Limited) Appointed w.e.f.* 31 May, 2021 Comrade Quadri Olaleye Representing Trade Union Congress - Appointed w.e.f.* 31 May, 2021 Mr. Philip Southwell Representing NECA - Appointed w.e.f.* 31 May, 2021 Mrs. Osaretin Demuren Independent Director - Resigned w.e.f.* 31 December,2021 Mr. Babatunde Akinsola Executive Director, Operations - Appointed w.e.f.*29 March, 2021 Mrs. Eno Adetayo-Olugbemi Executive Director, Business Development and Marketing - Appointed w.e.f.* 31 May, 2021 Mr. Uche Ihechere Executive Director, Finance & Corporate Services - Appointed w.e.f.* 31 May, 2021 Mr. Andrew Onyilokwu Executive Director, Finance and Benefits Administration - Resigned w.e.f.* 28 March, 2021 *with effect from Company Secretary/ Legal Adviser: Funmilayo Oluwo Registered Office: Plot 820/821,Labour House Central Area Abuja Auditors: Ernst & Young 10th & 13th Floors UBA House 57 Marina Lagos Bankers: Bankers: First Bank Nigeria Limited Guaranty Trust Bank Limited Access Bank Plc Zenith Bank Plc PFA No: PFA No.: 000009 xi Trustfund Pensions Limited CONTENT WRITING: @RHODA ADESILU LAYOUT & DESIGN: @RHODA ADESILU xi