Mrs Chinelo Anohu-Amazu
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Chuks Udo Okonta
Pension Fund Administrators (PFAs) have invested N3.99 trillion out of the N5.90 trillion pension assets in Federal Government securities as at August 2016, Inspen can report.
The National Pension Commission (PenCom) said this in the summary of pension fund as at August 2016, published on its website. The commission maintained that Federal Government bonds gulped N3.37 trillion whilst N716.93 billion was invested in treasury bills.
The commission noted that N521.34 billion was invested in domestic ordinary shares, while foreign ordinary shares got N116.21billion. State governments’ securities got N138.51billion and corporate debt securities received N294.84 billion.
It noted that supra-national bonds got N11.36 billion; local money market securities gulped N442.73 billion; foreign money market securities got N4.41billion; open/closed-end funds received N18.03 billion; real estate got N212.37 billion; private equity funds got N22.83 billion; infrastructure funds received N1.75billion and cash & other assets N30.04 billion.
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.
