FG securities gulp N3.87trn pension funds


Mrs Chinelo Anohu-Amazu

.Assets N5.73trn in June

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Chuks Udo Okonta

Federal Government’s securities have continued to attract more funds from the Contributory Pension Scheme (CPS) as N3.87 trillion out of the N5.73 trillion total fund assets, were invested in bonds and treasury bills in June 2016.

The National Pension Commission (PenCom) in its portfolio summary for the period ended March 30, 2016, stated that N3.38 trillion was invested in bonds and N487.08 billion in treasury bills.

The commission noted that N561.44 billion was invested in domestic ordinary shares, whilst foreign ordinary shares got N99.50 billion. State governments’ securities got N139.59 billion and corporate debt securities received N269.81billion.

It noted that local money market securities gulped N494.51billion; foreign money market securities got N1.84billion; real estate got N212.83 billion; private equity funds got N18.66 billion; open/close end funds, N18.65 and infrastructure funds received N1.62 billion.

PenCom said cash and other assets got N31.73 billion.

The Director-General, National Pension Commission,(PenCom) Mrs Chinelo Anohu-Amazu, had identified dearth of products as reasons for the continuous investment of funds in federal government’s securities, whilst charging pension operators to develop alternative products.

“The PFAs are constrained; they are unable to develop the products they invest which is why we have a preponderance of the pension funds in federal government securities, there are no alternatives,” she said.

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