|Administration Of Pension Funds Added To JNFM’s Portfolio|
The administration of pension funds and pension investment management services has now been added to the portfolio of JN Fund Managers Limited (JNFM), a subsidiary of the Jamaica National Building Society (JNBS).
Sharon Smith, Assistant General Manager of JNFM, who made the disclosure recently at a JNFM pension seminar in Kingston, said these services, to be offered by the JNFM Pension Fund Management Unit, were designed with care, using the latest technology and best practices to ensure that clients will conform to the new Pensions Act and that their pensions funds will be sustainable.
“The JN Group is diverse, offering services in investment, credit, software solutions, real estate sales and management, as well as mortgage facilities. We have leveraged the products and services from these companies to produce pension investment and pension administration services not now being offered by any existing financial provider,” she noted.
Ms Smith mentioned that the two services could be accessed together or separately, and will seek to address challenges that trustees may face. She said among the challenges pension administrators face is the length of time it takes to produce member statements, actuarial valuations as well as inaccurate calculations for termination options.
JNFM Pension Fund Management services will include set up and maintenance of pension schemes such as plan rules, preparation of documents regarding regulatory requirements and access to actuarial and audit services.
With regard to the Pension Investment Management Services, she said among the challenges faced are disappointing returns on investment, where trustees have been unable to explain to their members a single digit return, when average treasury bill rate is over 13 per cent. Another major challenge she pointed out is the management of real estate and the frequency of trustee meetings. “Irregular meetings impact on the speed at which important decisions affecting the pension fund are made,” Ms Smith stressed.
“Our Pension Investment Management Services will address these challenges. We will manage all asset classes such as real estate and equities; property insurance and property management and valuations, as well as custodial services,” she said, adding that three types of funds will be operated under this service. These are segregated funds, pooled funds and retirement schemes.
Earl Jarrett, General Manager of JNBS, said pension administration is a natural progression for JN Fund Managers as “we have demonstrated excellent competence in funds management.”
“We must do all we can to encourage persons to facilitate long-term planning, particularly among self-employed persons,” he added.
JNFM is a licensed securities dealer and provides a suite of financial solutions to assist clients to create financial security and wealth.