Lagos: January 8, 2018 – The appointments of Mr. Balogun and James Ilori to the Board of Legacy Pension Managers (“Legacy Pensions”) come in the wake of the acquisition by FCMB Group of 60 percent of the company, raising its interest to 88%. The Central Bank of Nigeria, the National Pension Commission, and the Securities and Exchange Commission approved the transaction in November 2017. The board appointments have also received the approval of the National Pension Commission. Legacy Pensions has over N230 billion assets under management, which grew by 22% in 2017. It has over 350,000 pension contributors, whom it serves from 48 locations across the country.

The new Chairman of Legacy Pensions, Mr. Balogun, was until March last year the Chief Executive Officer of First City Monument Bank (the retail and commercial banking subsidiary of FCMB Group). He has over 23 years’ experience in the financial services industries in Europe, the United States of America and Africa. Mr. Balogun also holds a Bachelor’s degree in Economics from the University of East Anglia, United Kingdom and a Masters in Business Administration (MBA) from Harvard Business School, United States of America. His appointment in 2007 as the Managing Director of First City Monument Bank Limited saw the transformation of FCMB from an investment bank to a prominent mid tier Nigerian commercial bank and financial services group. By 2017, the banking group had 10,000 employees and contract workers, 4.3 million customers, 200 branches and a banking subsidiary in the United Kingdom. During this period, FCMB also birthed what became the country’s leading micro-lending institution, Credit Direct Limited. Mr. Balogun now runs FCMB’s holding company: FCMB Group plc.

Mr. Balogun serves on the board of several FCMB Group companies and chairs the board of Credit Direct Limited. Mr. Balogun also serves as Chairman of Tenet Investment Company, a private equity investment firm, focused on the food and agri-business value chain in West Africa.

Mr. James Ilori on the other hand has vast experience in Research, Business Development, Risk Management, and all areas of the investment decision-making process acquired from leading organisations in Nigeria and the United Kingdom. Before his appointment as the Chief Executive Officer of First City Asset Management (FCAM) in 2014, he worked as a fixed income fund manager with Crown Agents Investment Management in the United Kingdom.

Mr. Ilori, who is a CFA Charter holder, has successfully propelled FCAM to become a top-rated wealth management company. It provides services that cut-across collective investment schemes such as mutual funds and investment plans predominantly for retail investors, as well as specialised discretionary portfolio management, for high net-worth individuals and institutional investors, within and outside Nigeria. Mr. Ilori will also serve on Legacy’s investment committee as the pension fund manager seeks to continue its strong investment performance track record, whilst diversifying its portfolio.

The appointments signal Legacy Pension’s intent of tapping into the investment and distribution synergies that FCMB Group brings to Legacy Pensions. Analysts anticipate that the company will be better positioned to grow its market share, compete effectively, and also fulfill its ambition of bringing pension savings to Nigeria’s vast informal market. The company will leverage on the network and pedigree of FCMB Group Plc and its subsidiaries, which include First City Monument Bank Limited, FCMB Capital Markets, CSL Stockbrokers Limited, CSL Trustees Limited, First City Asset Management Limited, FCMB Microfinance Limited and now, Legacy Pension Managers Limited.

First City Monument Bank (FCMB) Limited, through its reward scheme tagged ‘’FCMB Millionaire Promo Season 4’’, has rewarded and empowered a total of 2,576 of its customers within the eight months the promo ran. This was disclosed at the grand finale draws of the promo which took place at the four Regions and 25 Zones of the Bank across Nigeria on Thursday, November 30, 2017. The promo which targeted all existing savings account customers of FCMB with monthly account balance ranging from N10,000.00 to N50,000.00 was designed to give extra value and empowerment to customers of the Bank, while encouraging financial inclusion and savings culture. It was also a part of various initiatives of the lender to enhance customer experience and reward them for their loyalty and patronage over the years. The first draw of the promo this year was held in May, followed by the second in July and the third in September. At each of the draws, 644 qualified customers won various gifts, including four of them who smiled home with N1million each.

At the colourful and exciting grand finale draws ceremony witnessed by thousands of people, including customers of the Bank and officials of regulatory bodies, another set of 644 customers emerged as winners. While four lucky customers were each rewarded with the star prize of N2million, a total of 640 other account holders smiled home with LED television sets, generating sets, decoders, tablets, smart phones and other consolation prizes, at the end of the electronic selection exercise.

Adelagun Mary won the star prize of N2million at the Lagos regional draws, while Musa Ele won the same amount at the Abuja & North region. In addition, Chika Anaelechukwu emerged winner of N2million at the South-East/South-South draws, just as Adelaja George was rewarded with same amount, being the star prize winner at the South-west regional draws. The winners, customers and officials of the regulatory bodies commended FCMB for sustaining its empowerment and the support to the populace in the society. One of the winners of N2million Musa Ele expressed gratitude to the financial institution for being a true partner in progress. In an excitement-laden voice, he stated that, ‘’I am very grateful tp FCMB for coming-up this promo, because without it I will not have the opportunity to win this money. I am very grateful to FCMB and I believe the Bank will continue to help many people’’.

In his comment, the Zonal Co-ordinator of the National Lottery Regulatory Commission in Oyo State, Mr. Tayo Fasuhanmi, hailed the Bank for conducting the exercise with integrity. He stated that, ‘’FCMB followed due process from the beginning of the promo till the emergence of the various winners. We give commend the Bank for all it has done through this promo to empower Nigerians and bring happiness to the lives of customers’’. Speaking on the concluded promotion and its grand finale, the Executive Director, Retail Banking, Mr. Olu Akanmu, said FCMB had fulfilled the promise it made customers to reward those who participated and qualified for the promo during the four draws organised at the Bank’s various zones and regions nationwide.

According to him, ‘’one of the major objectives which characterised the promo was our commitment to drive financial inclusion and promote savings culture in the society, particularly the unbanked segment. I can boldly say, we achieved our aim, looking at the number of new to Bank customers recorded.  May I once again thank all FCMB customers for their loyalty and belief in our financial institution and also congratulate all prize winners. I want to use this opportunity to reinstate our commitment to exceptional customer experience and excellent service delivery’’. Mr. Akanmu encouraged them to make wise use of their prizes, particularly the star prize winners and added that, ‘’FCMB promo is credible.  The draws which took place in all the zones of FCMB across Nigeria, brought about winners emerging from every region, spreading across cities, towns and neigbourhoods all over the country. The FCMB franchise is strong across Nigeria with millions of customers doing their savings and banking transactions, using all our channels daily. We will continue to reward our customers for their patronage’’.

He further assured that FCMB will continue to offer the best in service and product offerings in line with its value as a simple, reliable and helpful financial institution. However, it was also confirmed that following positive feedback from customers and the general public, the Bank is making arrangements to launch FCMB Millionaire Promo Season 5 as soon as possible and the modalities may not be different from the previous seasons. First City Monument Bank (FCMB) Limited is a member of FCMB Group Plc, which is one of the leading financial services institutions in Nigeria with subsidiaries that are market leaders in their respective segments. Having successfully transformed to a retail and commercial banking-led group, FCMB expects to continue to distinguish itself by delivering exceptional services, while enhancing the growth and achievement of personal and business aspirations of its customers.

FCMB Group Plc has successfully completed the acquisition of an additional 60 percent equity stake in Legacy Pension Managers Limited (Legacy). The acquisition, which increases the holding company’s interest in the company from 28.2 percent to 88.2 percent, was concluded at the Completion Board Meeting of Legacy on Tuesday, November 21, 2017 in Abuja. The completion of the transaction follows the approvals of the Central Bank of Nigeria, the National Pension Commission, and the Securities and Exchange Commission. FCMB Group’s acquisition of Legacy is set to open a new vista of sustained growth for Legacy through the enhanced distribution and market presence.

Analysts have hailed the decision of FCMB Group to acquire majority stake in Legacy Pension as a significant development that would enhance the future performance of both organizations. They anticipate that Legacy Pension will be better positioned to grow its market share, compete effectively upon the onset of Retirement Savings Account portability, and also enter the micro-pensions segment in the informal market by leveraging on the network of First City Monument Bank, the retail and commercial banking arm of FCMB Group.

FCMB Group Plc’s subsidiaries include: First City Monument Bank Limited, FCMB Capital Markets, CSL Stockbrokers Limited, CSL Trustees Limited, First City Asset Management Limited, FCMB Microfinance Limited and now, Legacy Pension Managers Limited. FCMB Group has over 4.3 million customers and 204 branches in Nigeria and a banking subsidiary in the United Kingdom through FCMB Bank (UK) Limited (which is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the PRA in the United Kingdom).   Legacy Pension Managers Limited is licensed by the National Pension Commission, to carry on business as a Pension Fund Administrator (PFA). It has over N220 billion assets under management comprising, retirement savings accounts, retiree accounts as well as privately managed pension funds for institutions. It has over 350,000 pension contributors which it services from 48 locations across the country.

Group Chief Executive (GCE) of FCMB Group Plc, Mr. Ladi Balogun

MD of Legacy Pension, Mr. Misbahu Yola

If a pension is deemed to be an invaluable source of income for the retired, and the Federal Government of Nigeria so motivated, introduced the Pension Reform Act of 2004, it should not be a surprise that within 13 years from inception, the pension industry has already risen to N6.02 trillion assets under management. The rate of growth is quite remarkable when compared to the 125-year-old Nigerian banking industry that stands at slightly over N30 trillion.   Putting aside, the rapid growth of the sector, to what extent have the Pension Funds Administrators delivered on the expectations of their retiring beneficiaries? What stands out about Legacy Pension Limited? Why has FCMB Group Plc decided to increase its stake from 28.2% to over 88% equity holding in this pension firm?

Our guest Market Opinions Analyst, Emefu Ibeayoka, writing from Abuja, the Federal Capital Territory reflects on FCMB Group’s history from City Securities Limited and First City Merchant Bank to its current form of a diversified financial services group with its deep knowledge and experience in the investment space. The recent announcement on the floor of the NSE of its intention to increase participation in the pension industry seems a natural next step for the group as the pension industry is set to rival the banking sector in terms of size and economic importance over the next decade. The Pension Reform Act has restored discipline and trust for retirement savers. It has also limited employers’ pension liability and enhanced retirement benefits administration.  No Pensioner has lost their savings due to mismanagement and the industry continues to grow at a healthy pace. A lot of this credit accrues to the National Pension Commission (Pencom). A cursory survey of stakeholders would probably score Nigeria’s pension reform and pension industry performance high. The only complaint seems to be coming from capital market operators and providers of infrastructure, that are clamouring for pension fund managers to allocate more of their resources to these sectors in need of further development. Looking at the volatility of our stock market and the challenges of power sector privatisation (due largely to non-cost reflective tariffs), we must commend the PFAs and their regulator that they have remained conservative in their investment strategy.

Further reports are quoted to reveal that in spite of the macro-economic headwinds experienced last year, the Nigeria Pension Industry’s AUM grew by 16%, one percent higher than growth in the previous year. Despite the contraction in monthly contributions, growth in AUM was largely driven by the higher yield offered in the fixed income market. Figures from May 2017, Nigeria Pension Industry Survey revealed 12.1% of respondents have decided to move to another PFA when the transfer window opens whilst 35.4% remain undecided. The level of competition amongst PFAs in Nigeria is set to intensify, with the opening of the transfer window and implementation of the Micro Pension Scheme (MPS). FCMB Group’s announced intention to acquire a super majority of Legacy Pension Limited will broaden its service offerings with the group already offering commercial and retail banking, investment banking, asset management, and trusteeship services. The successful completion of this transaction will bring FCMB Group’s shareholding in the company to 88.2%, thus becoming its largest shareholder. The development follows months of negotiations, regulatory reviews, approvals and pending final clearances of all relevant authorities.  it is on record that FCMB Group Plc, which is a holding company, has one of the richest predigrees in financial services in Nigeria. The broadening of its holdings to include a controlling stake in a PFA will most certainly open a new vista of growth and stability to its income streams. The bank’s reported 4 million customers, 200+ branch network and strong digital presence are fertile grounds for the rapid growth of this new addition to its portfolio.

On the other hand, Legacy Pension Managers Limited, whilst being a conservative player with a strong presence in Abuja and the North has steadily grown its assets under management to over N220 billion. The company has maintained a strict investment policy and achieved decent returns since inception. Co-incidentally, FCMB Group’s equity mutual fund (known as the Legacy Equity Fund), won the BusinessDay Best Managed Fund (Equity Based) Award in October 2017, returning 52% year to date. It is expected that FCMB’s over 40 years of investment experience will complement and enhance Legacy Pension Managers proposition to existing and prospective customers. with the synergies from enhanced distribution and investment expertise, analysts have hailed the decision of FCMB Group to acquire majority stake in Legacy Pension Managers by describing it as a significant development that would not only shake up the pension industry, but also enhance the future performance of FCMB Group. Analysts anticipate that Legacy Pension Managers will be better positioned to grow its market share, compete effectively upon the onset of Retirement Savings Account portability, and also enter the micropensions segment in the informal market that will leverage the distribution and marketing muscle of a commercial bank within the group. These are interesting times for FCMB Group, Legacy Pension Managers and the pension industry as a whole.