Sharia pension fund coming

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By Omobola Tolu-Kusimo

 

A new fund, Sharia Fund  may birth soon, The Nation has learnt.

The Sharia Fund which will be Fund 6 under the Multi-Fund structure is coming after Fund 5, the Micro Pension Scheme, will be a sharia compliant fund.

Multi-Fund structure is a framework designed to match age and risk profile to one of four distinct Retirement Savings Account (RSA) funds.

These include three RSA Fund types for active contributors and one Retiree Fund for retired contributors. Membership of funds one to three is restricted to contributors in the formal sector only.

Last year, the National Pension Commission (PenCom) introduced the Micro Pension Scheme fund type.

The Managing Director, ARM Pensions, Mr. Wale Odutola   said  the fund is similar to Islamic banking products in the banking industry and Takaful Insurance product in the insurance industry.

Read Also:PenCom orders employers to submit workers’ insurance certificates

Odutola who said it is a positive development for the industry stated that there are few Muslims that are particular about how they invest and what they invest their monies into.

He said the investment channels have to be areas that are acceptable with their fate.

Speaking further on investment of pension fund, he said the exposure to variable income instruments under the Multi-Fund structure is the sum of a Pension Fund Administrators (PFAs) investments in Ordinary Shares and participation units of Open Close-ended and Hybrid Funds; Real Estate Investment Trust; Infrastructure Funds; and Private Equity Funds comprising its current holdings and any future financial commitments to the acquisition of participation units in these Funds.