FG securities gulp N3.68trn pension funds as at March

Director-General, PenCom, Mrs. Chinelo Anohu-Amazu

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Chuks Udo Okonta

Federal Government’s securities have continued to attract more funds from the Contributory Pension Scheme (CPS) as N3.68 trillion out of the N5.46 trillion total assets, were invested in bonds and treasury bills in March 2016.

The National Pension Commission (PenCom) in its portfolio summary for the period ended March 31, 2016, stated that N3.23 trillion was invested in bonds and N448.69 billion in treasury bills.

The commission noted that N469.95 billion was invested in domestic ordinary shares, while foreign ordinary shares got N67.97 billion. State governments’ securities got N152.81 billion and corporate debt securities received N186.42 billion.

It noted that local money market securities gulped N574.34 billion; foreign money market securities got N2.69 billion; real estate got N212.26 billion; private equity funds got N17.00 billion and infrastructure funds received N1.02 billion.

Click to access 1462891235_Summary_February_2016.pdf

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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