FG securities, foreign equities haven for pension investments


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Chuks Udo Okonta
Pension Fund Administrators (PFAs) have find succour in federal government securities and foreign equities which are now haven for investments due to safety and return on investments.

According to a report by the National Pension Commission (PenCom) the operators have consistently make investment in the asset classes, while funds are pulled from the capital market; money market and real estate.
PenCom noted that investment in federal government bonds moved from N2.39 billion in the fourth quarter 2014 to N2.59 billion in first quarter this year, and Treasury bills moved from N497.78 billion to N548.08 billion, while investment in foreign equities moved from N59 billion to N71 billion with the same period.
It said due to the uncertainties that characterized the stock market and its volatilities, there was a divestment from ordinary share, which declined by N30.80 billion, stressing that the local money market securities also witnessed a large decline of N105.11 billion. Investment in real estate was also affected as it dropped from N213.25 billion to N210.14 billion.
Assets classes with marginal increases include; corporate debt securities moving from N119.44 billion to N121.83 billion; private equity fund from N11.10 billion to N13.53 billion; state government bonds from N172.40 billion to N172.45 billion and cash and other assets from N22.84 to N30.78 billion.
Chairman Pension Fund Operators Association of Nigeria (PenOp) and Managing Director AIICO Pension Managers Limited Eguarekhide Longe, said operators have continued to make investments in line with stipulated guidelines issued by the industry regulator – PenCom.

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