Naira appreciation over Dollar dips pension fund assets by N90.29bn

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Chuks Udo Okonta

The reduction in revaluation gains made by the Closed Pension Fund Administrators (CPFAs) and Existing Schemes as a result of the appreciation of Naira to Dollar led to the drop of pension fund assets by N90.29 billion in the month of March 2024, Inspenonline can report.

The National Pension Commission (PenCom) in its unaudited report on pension fund industry portfolio for the period ended March 31, 3024, stated that the pension fund assets stood at N19.76 trillion in February, but fell to N19.67 trillion in March, which was a dip of N90.29 billion.

According to PenCom the net asset value of Existing Schemes was N2.20 trillion in February, but dropped to N2.17 trillion in March. While that of CPFAS was N2.59 trillion in February, but dropped to N2.32 trillion in March.

It was gathered that Existing Schemes and CPFAS are allowed by the Pension Reform Act (PRA) 2014 to make offshore investments.

The pension industry regulator submitted that the pension fund assets gained N1.17 trillion between December 31, 2023 and January 31, 2024, attributing the gain to foreign currency denominated investments made by Closed Pension Fund Administrators and Existing Schemes

It noted that whilst the existing schemes and CPFAS net assets value dipped, those of Fund I to Fund VI, which are denominated in Naira appreciated.

According to the PenCom, Fund I, moved from N179 billion in February to N187 billion in March; Fund II, soared from N8.21 trillion to N8.88 trillion; Fund III, N5.11 trillion to N5.17 trillion; Fund IV, N1.41 trillion to N1.43 trillion; Fund V, N730 billion to N782 billion and Fund VI, N6.51 billion to N6.72 billion.

PenCom assured the public, especially Contributory Pension Scheme (CPS) subscribers of safety of their funds as there is no cause for an alarm.

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