PFAs invest N8.56tn of pension assets in FG Securities – The Whistler Newspaper
Nigeria’s pension sector regulator, the National Pensions Commission, said the country’s pension assets rose from 3 billion naira in 2012 to $33.79 billion (14.05 billion naira) in May 2022. .
A portion of the funds was invested in federal government securities, according to an analysis by THE WHISTLER.
Based on the unaudited Pension Fund Industry Portfolio Report, the funds that closed on December 31, 2021 at 13.42 billion naira increased to 13.61 billion naira and 13.76 billion naira. naira at the end of January and February 2022, respectively.
Funds include: Registered Existing Schemes, Closed Pension Fund Administrators and RSA funds.
PenCom has been strategic in its ambition to grow the pension industry and instill confidence in the system.
Regulators concluded a recapitalization exercise for pension fund administrators from N1 billion to N5 billion, resulting in the reduction of the number of PFAs from 22 to 20.
The regulations allow fund managers to invest 25% in equities, 35% in the money market and the rest in government bonds.
A breakdown of how the PFAs invested the funds revealed that most of the funds were invested in FGN securities, including federal government bonds (8.22 billion naira), treasury bills (149.8 billion naira), Green Bonds (55.13 billion naira), SUKUK (122 billion naira) and Agency Bonds (13.46 billion naira), which accounted for 8.5 billion naira or 60.9 % of fund assets.
The country’s PFAs also invested N2.25 trillion in money market instruments, including fixed deposits (N1.99 trillion); commercial papers (N264.5 billion); Foreign money market instruments (N14.5 billion).
The PenCom report revealed that N1.17tn was invested in corporate debt securities such as corporate bonds, corporate infrastructure bonds and corporate green bonds.
The PFAs invested 1.105 billion naira to acquire domestic ordinary shares (999.01 billion naira) and foreign ordinary dhares (106.6 billion naira).
Investment in real estate stood at 235.9 billion naira in May; Infrastructure Fund N70.1bn; Mutual funds N61.5bn among others.