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MARCH 24, 2023
SATURNIA REGNA: CHANGING THE FACE OF ZAMBIA’S PENSION SCENE
LUSAKA, ZAMBIA – While driving Zambia’s development agenda requires the collaborative efforts of stakeholders from various sectors, the pension industry plays a critical role in the economy as one of the largest investment blocks dominating regional and international stock markets.
As such, the industry has undergone legal and structural reforms to establish a well-functioning system that not only provides adequate benefits to retirees but also stimulates economic activities on the home-front.
One such reform occurred in 1991 during the liberalisation of the Zambian economy into a free market, that necessitated the adoption of a ‘three-pillar’ pension system comprising of statutory schemes, individual pension plans and private pension funds.
Prior to the introduction of this system, efficient service delivery in the industry seemed unattainable due to an over-reliance on statutory schemes as sole retirement benefits providers, which resulted in dissatisfaction among retirees.
Private pension funds came in as alternative investment options for would-be retirees and a notable one to have emerged during the period was the Saturnia Regna Pension Fund, which would grow to become Zambia’s largest private pension scheme.
Saturnia’s beginnings: steady growth
Hailing from a modest background, Saturnia Regna at inception in 1992 was merely a private pension trust fund for a mining conglomerate operating in the country.
Initially starting out with pension plans for six companies, a series of successful investment returns and promising financial security measures eventually led to an increase in the fund’s membership to include firms outside the conglomerate.
“Saturnia Regna’s increase in membership was due to the unique nature of its product, and employers were keen to join the scheme because of the returns it generated for existing members. In addition, administration of the fund was done with transparency and openness, allowing members to easily follow through its progress,” explained Bryson Hamanzuka, Chief executive Officer of the fund’s administrator Benefits Consulting Services.
Having started operations during a period engulfed by a wave of distrust and skepticism towards the pension industry, a Board of Trustees was elected from Saturnia Regna’s contributing members and was charged with the task of overseeing the management and administration of the fund’s activities.
Mr Hamanzuka commented: “The Board worked with fund managers and administrators to invest in attractive financial instruments to ensure maximum returns for members. This system of operation worked well in that we recorded positive results that elevated Saturnia’s status to one of the country’s most well-regarded pension funds.”
Meanwhile, continuing its mission to provide Zambian employees with the best retirement benefits, Saturnia Regna operated on a clearly laid out strategy through which it increased its scope of operations to include non-corporate entities that wanted to join the fast-growing scheme.
“We started receiving requests from individuals and small businesses who were interested in receiving retirement benefits from Saturnia. Therefore, working in collaboration with the Pensions Insurance Authority (PIA) we opened a special product for them to join,” he added.
Driving industry growth
Marking over 30 years of existence, Saturnia Regna is one of the fastest growing and commercial pension funds in the country with a sustained market share of about 27%.
Since its inception, the multi-employer pension trust fund has continued to grow in strength, moving from a few registered members to encompassing over 36,000 employees under 200 members across the country.
Some of the country’s biggest employers are registered under the pension fund, including the Patents and Companies Registration Agency (PACRA), British American Tobacco, First National Bank and Mopani Copper Mines.
With a focus on protecting and securing members’ finances while adhering to ideal industry practices to boost the fund’s growth, Saturnia Regna has invested in well-diversified investment portfolios including government bonds, equities, corporate bonds and property, managing over K3 billion in net assets.
“We are committed to complying with PIA regulations and the tenets of good corporate governance to ensure the fund operates a robust system which would result into more positive returns for the pension fund,” added Mr Hamanzuka.
Continued growth
The COVID-19 pandemic threw a wrench in the country’s economic growth trajectory and the pension industry was not spared either. Nevertheless, Saturnia Regna still operated with resilience and earned its members 23.7% gross investment returns in 2021, a benchmark performance for the period.
Expounding on the major success Saturnia underwent, Mr Hamanzuka said: “The pension fund is administered by a team of dedicated experts who continue to work tirelessly to ensure Saturnia records positive returns amid even the harshest economic conditions. We also undertake periodic reviews of the strategic asset allocation considering the risk tolerance of the fund and history asset class returns in view of prevailing market trends. This helps us realise the objectives laid out for the fund.”
Throughout its operations, Saturnia Regna has demonstrated foresight in adapting to meet the ever-changing demands of members and championing innovation. In doing so, the fund has enhanced its communication network by generating a website for easy access of information and upgrading its Member Self Service (MSS) portal to give members liberty to regularly check their statements.
Drawing from the pension fund’s immense success, it can be safe to say that the impressive membership, massive returns and operations structure all serve as evidence of the remarkable growth that awaits Saturnia Regna as it continues its journey to becoming Zambia’s most effective and efficient private pension fund, thereby changing the face of the country’s pension industry as we know it.
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About Saturnia Regna Pension Fund
The Saturnia Regna Pension Fund is Zambia’s largest private pension fund, providing pension plans to employees at 200 corporates covering more than 36,130 employees.
The fund manages K3 billion of net assets including shares in most of the companies listed on the Lusaka Securities Exchange (LuSE) and investments in Zambian Government Treasuries.
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