Pension Fund Administrators Invest $11.8M in Federal Govt. Bonds

By June 29, 2017 Investment News

Nigeria’s pension fund has continued to grow as it hit N6.49 trillion in April 2017 from N6.41 trillion recorded in March 2017, The Nation has learnt.

This was made known in a report entitled: Summary of Pension Fund Assets as at April 30, 2017 obtained by The Nation from the industry regulatory body, the National Pension Commission (PenCom).

Out of the total fund, Pension Fund Administrators (PFAs) with the approval of the National Pension Commission invested a major chunk of the fund totaling N3.6 trillion in Federal Government Securities, representing 78.91 per cent of the fund.

The PFAs also invested 15.66 percent into Treasury Bills to the tune of N1.02 trillion. A further breakdown, according to the report, showed that while N480 billion was invested in Domestic Ordinary Shares, N92 billion was invested in Foreign Ordinary Shares representing 7.40 per cent and 1.41 per cent.

Under Local Money Market Securities, the PFAs invested N409 billion with banks, and N44 billion in Commercial Papers representing 6.26 and 0.69 per cent. They also invested N126.1 billion into state government Securities while corporate debt securities had N311 billion.

Meanwhile, Retirement Savings Account (RSA) Active Funds has risen to N4.4 trillion from N4.34 trillion representing 68 per cent of the total fund. RSA retirees had the second largest growth of 1.25 per cent from N484 billion in March to N490 billion in April. This is followed by Closed Pension Fund Administrators (CPFAs) with N902 billion representing 14 per cent of the total fund.

Source: The Nation