Pension

Pension fund assets rise to N9.58tn in September

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Chuks Udo Okonta

The National Pension Commission Pension (PenCom) has said the pension fund assets stood at N9.58 trillion by the end of September 2019.

PenCom stated this in it summary of pension fund assets as at September 30, 2019, published on its website, adding that N6.84 trillion of the pension fund assets have been invested in Federal Government securities as at the end of the month under review.

According to PenCom, investments in FGN securities include: N4.48 trillion amounting to 46.71 per cent in Bonds; N2.26 trillion in Treasury Bills (23.62 per cent); N10.69 billion in Agency Bonds (NMRC & FMBN), (0.11 per cent); N80.53 billion in Sukuk (0.84 per cent) and N13.38 billion in Green bonds, (0.14 per cent).

PenCom noted that in line the the Multi-fund structure, Retirement Saving Account (RSA) Fund 1, N19.31 billion was invested; RSA Fund 11, N4.23 trillion; RSA Fund 111, N2.38 trillion and RSA Fund IV, N768.38 billion.

It stated that N492.08 billion, which was 5.13 per cent of the funds, was invested in domestic ordinary shares; while N65.14 billion, amounting to 0.68 per cent in foreign ordinary shares.

The pension industry regulator maintained that pension operators invested N125.24 billion (1.31 per cent) in State Government’s Securities; Corporate bonds got N572.42 billion (5.97 per cent); Corporate Infrastructure bonds, received N17.79 billion, (0.19 per cent); Corporate Green Bonds, N31.74 billion, (0.33 per cent); Supra-National Bonds got N4.03 billion (0.04 per cent); commercial papers, N123.28 billion (1.29 per cent); Banks, N951.28 (9.93 per cent).

Others are, Open/Close-end funds, N9.90 billion, (0.10 per cent); Reits, N11.91 billion, (0.12 per cent) Foreign Money Market Securities, N8.42 billion, (0.09 per cent); private equity fund, N32.05 billion, (0.33 per cent), Real Estate Properties, N231.48 billion, (2.42 per cent); infrastructure funds, N34.89 billion, (0.36 per cent) and cash & other assets, N26.47 billion, (0.28 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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