Pension

Pension assets soar to N10.51tn as FG securities gulp N7.09tn

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Chuks Udo Okonta

The National Pension Commission (PenCom) said the total pension fund assets as at February 29, 2020 was N10.51 trillion, of which N7.09 trillion (67.51 per cent) of the amount has been invested in Federal Government’s securities.

PenCom stated this in its monthly report, which detailed the summary of pension fund assets as at February 29, 2020. According to the pension regulator, Retirement Saving Account (RSA) retiree fund which has been reclassified in the multi-Fund structure stood at, Fund I, N24.23 billion; Fund II, N4.57 trillion; Fund III, N2.66 trillion; Fund IV, N829 billion and newly introduced Fund V, N7.77 million.

It noted that Closed Pension Fund Administrators Fund (CPFAs), was N1.30 trillion and Existing Schemes (ES), N1.13 trillion.

A breakdown of the investment according to the commission, revealed that N532.45 billion (5.07 per cent) was invested in domestic ordinary shares; N65.04 billion (0.52 per cent) in foreign ordinary shares.

FGN bonds got N5.62 trillion (53.44 per cent); treasury bills, N1.37 trillion, (13.02 per cent); agency bond ( NMRC & FMBN) N11.80 billion, (0.11 per cent); Sukuk bonds, N84.42 billion, (0.80 per cent) and green bonds, N13.77 billion (0.13 per cent).

PenCom maintained that state government securities gulped N141.07 billion, (1.34 per cent), corporate bonds, N615.41 billion, (5.86 per cent); corporate infrastructure bonds, N20.23 billion, (0.19 per cent); corporate green bonds, N26.65 billion, (0.25 per cent); bank placement N1.48 trillion, (14.05 per cent); commercial papers, N125.95 billion, (1.20 per cent) and real estate properties, N219.72 billion, (2.09 per cent).

Other classes of assets include, supra-national bonds, N2.66 billion, 0.25 per cent); open/close end funds, N19.31 billion, 0.18 per cent); mutual funds, N29.99 billion, (0.18 per cent); private equity fund N38.41 billion, (0.37 per cent); infrastructure fund, N47.33 billion, (0.45 per cent); foreign money market securities N7.83 billion, (0.07 per cent); Reits, N10.69 billion, (0.10 per cent) and cash & other assets, N64.85 billion, (0.62 per cent).

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