Pension Fund Assests Rose By N140bn In September
Pension fund assets under the Contributory Pension Scheme (CPS) have continued to be one of the fastest growing savings accounts in the country as it grew by N140 billion in September.
This is according to a table on pension monthly summary for September, released by the National Pension Commission (PenCom) this month, a copy of which was obtained by The Nation.
The fund’s growth is majorly from a pool of monies in Retirement Savings Account (RSA), Retiree Fund and Return on Investment.
Total fund assets as at the period under review increased to N9.58 trillion from N9.44 trillion recorded at the end of August, 2019.
The N140 billion increment was achieved in September, representing 1.48 percentage growth in the period of one month.
The pension industry regulator stated that the Pension Fund Administrators (PFAs) as usual invested 71 per cent of the total pension fund in Federal Government Securities, amounting to N6.8 trillion.
Further breakdown showed that the pension managers invested N621 billion in Corporate Debt Securities, representing 6.4 per cent; Local Money Market N916 billion representing 11.2 per cent; and Mutual Funds N10 billion representing 0.2 per cent.
Under Federal Government Securities, FGN Bonds got N4.4 trillion; Treasury Bills N2.2 trillion; Agency Bonds (NMRC & FMBN) N10 billion; Sukuk N80 billion; Green bonds N13 billion and State Government Securities N125 billion.
A further breakdown showed that N492 billion was invested in Domestic Ordinary Shares, representing 5.1 per cent; while N65 billion was invested in foreign ordinary shares representing 0.68 per cent.
Under Corporate Debt Securities, Corporate bonds got N572 billion (5.97 per cent); Corporate Infrastructure bonds N17.79 billion, (0.19 per cent); Corporate Green Bonds, N31 billion, (0.33 per cent); Supra-National Bonds got N4 billion (0.04 per cent); Commercial Papers, N123 billion (1.29 per cent); and Banks, N951 (9.93 per cent).
Under Mutual Funds – investments in Open/Close-End Funds was N9 billion representing 0.10 per cent); Reits was N11 billion representing 0.12 per cent; Real Estate Properties, N231 billion (2.42 per cent); Private Equity Fund, N32 billion (0.33 per cent), Infrastructure Funds, N34 billion (0.36 per cent); and Cash & Other Assets, N26 billion, (0.28 per cent).
The commission noted that in line with the Multi-Fund Structure, Retirement Saving Account (RSA) Fund 1, N19.3 billion was invested; RSA Fund 11, N4.22 trillion; RSA Fund 111, N2.37 trillion and RSA Fund IV, N768.3 billion.
PenCom’s Acting Director-General, Aisha Dahir-Umar, attributed the accumulation of N9.58 trillion and other successes achieved since inception of implementation of the CPS to contributors. She called on employers and contributors to continue to contribute positively towards the success of the pension reform.