Pension Funds Gained N119.68bn From Equity In Q4, 2020 – PenCom

Pension fund investment gained N119.68bn from equity in the fourth quarter of 2020, the National Pension Commission has revealed.

Figures obtained on Monday from the PenCom report titled ‘Net realised gains/(losses) on equity/bonds in fourth quarter report’ revealed this.

Part of the report read, “The net realised gains on the sale of equities and bonds in Q4:2020 amounted to N119.68bn, compared to the realised gains of N39.94bn recorded in Q3:2020.

“This was mainly attributed to profit taking activities resulting from market appreciation in the prices of units held in these asset classes, during the period under review.”

According to the report, monthly pension contributions totaling N261.83bn were received in the fourth quarter for the Retirement Savings Account Funds I, II, III and V.

The amount represented a decrease compared to the total contributions of N291.19bn recorded in the third quarter.

It stated that the interests/coupons received on investments in fixed income securities amounted to N178.21bn in fourth quarter.

The amount was lower than N194.61bn recorded in the third quarter due to reduction in yields on fixed income securities in the fourth quarter of 2020.

Lower dividends totaling N3.91bn were received in the fourth quarter relative to N7.16bn received in the third quarter.

The commission revealed that the total transfers from the RSA active funds to the RSA retiree fund and payment of 25 per cent unemployment benefits amounted to N177.95bn, which was lower, by 40 per cent, than the total outflows of N294.97bn in third quarter.

It stated that the RSA Funds I, II and III earned significant returns within the quarter under review.

The average rate of return for the RSA Funds I, II and III were 41 per cent, 32 per cent and 25 per cent, respectively, it stated.

This was significantly higher than the average rate of returns of 20.85 per cent, 20.09 per cent and 19.87 per cent achieved by the respective funds in the third quarter.

According to the report, the performances of the RSA funds were positively impacted by appreciation in the market prices of quoted stocks as reflected by the return of 50.09 per cent recorded by the NSE-ASI in the fourth quarter.

The performance of the equity portfolio was further reinforced by appreciation in bond prices as the FMDQ Nigeria Sovereign-Bond-Index further appreciated by 13.83 per cent in Q4, it stated.