Pension

Over N6.82trn pension fund assets invested in FG securities

Mrs. Aisha Dahir-Umar

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Chuks Udo Okonta

The National Insurance Commission Pension (PenCom) has said N6.82 trillion pension fund assets have been invested in Federal Government securities as at the end of August 2019.

PenCom stated this in it summary of pension fund assets as at August 31, 2019, published on its website, adding that the N6.82 trillion, amounted to 72.24 per cent of the total N9.44 trillion pension fund assets.

According to PenCom, investments in FGN securities include: N4.52 trillion amounting to 47.93 per cent in Bonds; N2.20 trillion in Treasury Bills (23.31 per cent); N9.96 billion in Agency Bonds (NMRC & FMBN), (0.11 per cent); N70.99 billion in Sukuk (0.75 per cent) and N13.07 billion in Green bonds, (0.14 per cent).

PenCom noted that in line the the Multi-fund structure, Retirement Saving Account (RSA) Fund 1, N17.88 billion was invested; RSA Fund 11, N4.16 trillion; RSA Fund 111, N2.33 trillion and RSA Fund IV, N758.65 billion.

It stated that N465.33 billion, which was 4.93 per cent of the funds, was invested in domestic ordinary shares; while N63.93 billion, amounting to 0.68 per cent in foreign ordinary shares.

The pension industry regulator maintained that pension operators invested N128.04 billion (1.36 per cent) in State Government’s Securities; Corporate bonds got N520.63 billion (5.52 per cent); Corporate Infrastructure bonds, received N10.19 billion, (0.11 per cent); Corporate Green Bonds, N25.45 billion, (0.27 per cent); Supra-National Bonds got N3.99 billion (0.04 per cent); commercial papers, N140.55 billion (1.49 per cent); Banks, N917.34 (9.72 per cent).

Others are, Open/Close-end funds, N10.72 billion, (0.11 per cent); Reits, N11.65 billion, (0.12 per cent) Foreign Money Market Securities, N8.74 billion, (0.09 per cent); private equity fund, N32.09 billion, (0.34 per cent), Real Estate Properties, N230.68 billion, (2.44 per cent); infrastructure funds, N30.69 billion, (0.33 per cent) and cash & other assets, N20.58 billion, (0.22 per cent).

PenCom’s Acting Director-General, Aisha Dahir-Umar, had attributed the accumulation of over N9 trillion and other successes achieved since inception of implementation of the CPS to esteemed contributors.

She called on contributors to continue to contribute positively towards the success of the pension reform programme.

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