Pension Investments In FGN Securities Rise To N9.64trn
Pension Fund Administrators have increased the value of investments in FGN Securities from N9.19 trillion as at September 30, last year to N9.64 trillion as at last December.
This represents N451.82 billion increase or 4.92 percentage increase.
According to the National Pension Commission (PenCom), the increase in the value of investments in FGN Securities was majorly due to additional investments in this asset class during the quarter.
PenCom made this known in its Fourth Quarter 2022 Report.
The report showed that the total value of pension fund assets as at December 31, 2022 was N14.99 trillion, which comprised of N10.72 trillion RSA ‘Active’ Funds I, II III and V; N1.19 trillion RSA Retiree Fund IV; N1.57 trillion Closed Pension Fund Administrators (CPFAs); and N1.48 trillion Approved Existing Schemes. Fund VI Active and Retiree Fund amounted to N36.20 billion.
A breakdown of the fund further showed that pension fund assets were mainly invested in Federal Government Securities (FGN), which accounted for 64.33 per cent of total assets.
The report read: “The composition of investments in FGN Securities includes FGN Bonds at 95.60 per cent; Treasury Bills at 2.06 per cent; and Agency Bonds, Sukuk and Green Bonds accounting for 2.34 per cent.
“The value of investments in quoted ordinary shares (domestic and foreign) stood at N1,017.01 billion or 7.06 per cent of total assets under management indicating a net increase of N52.14 billion or 5.40 per cent compared to N964.87 billion as at September 30, 2022.
“The increase in the value of investments in domestic quoted equities was primarily due to the appreciation in the prices of some stocks during the reporting period, as the Nigerian Stock Exchange Pension Index (NSE-PI) depreciated by 8.03 per cent in Q4, 2022.
“The value of investments in FGN Securities increased by N451.82 billion or 4.92 per cent to N9.64 trillion as at December 31, 2022 from N9.19 trillion as at September 30, 2022. The increase in the value of investments in FGN Securities was majorly due to additional investments in this asset class during the quarter.”