PFO Invests N122bn Pension Funds in Infrastructure – PenCom

Pension Funds Operators have invested N121.68bn of the Contributory Pension Scheme in infrastructure as of the end of February 2023, figures obtained from the National Pension Commission have revealed.

PenCom disclosed this in its unaudited report on the pension funds industry portfolio for the period ended 28 February 2023, titled ‘Approved Existing Schemes, Closed Pension Fund Administrators and RSA funds (including unremitted contributions @CBN & legacy funds)’

This was from a total fund of N15.45tn pension assets under management.

Total Retirement Savings Accounts under the CPS as of 28 February 2023 stood at 9,919,281.

The infrastructure funds rose from N74.54 as of February 2022 and N67.1bn in 2021 respectively.

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Other investment portfolios where the funds were invested include domestic and foreign ordinary shares; corporate debt securities comprising corporate bonds, corporate infrastructure bonds, corporate green bonds, and supranational bonds.

The commission had in its amended investment regulation highlighted the requirements for investing the funds in line with the provisions of Pension Reform Act, 2014.

It said the purpose of the regulation was to provide uniform rules and standards for the investment of pension fund assets.

According to the regulation, pension fund custodians must only take written instructions from licensed PFAs with respect to the PFAs’ investment and management of pension fund assets held in the custody of the PFCs on behalf of the contributors.

It said the PFCs, in discharging their contractual functions to PFAs, must not contract out the custody of pension fund assets to third parties except for allowable investments made outside Nigeria.

“The PFC shall obtain prior approval from the commission before engaging a global custodian for such allowable foreign investments,” it said.

According to the regulation, the PFAs, in discharging their contractual functions to contributors, must not contract out the investment/management of pension fund assets to third parties except for open/close-end/hybrid funds and specialist investment funds allowed by the regulation.