Pension assets rise by 2.76% in Q3 2019

The National Pension Commission (PenCom), has announced a 2.76 per cent increase in its pension fund assets in the third quarter of 2019.

The Commission made this known when it released its report on pension fund assets, that its asset for the third quarter of 2019 showing that the total value of pension assets rose quarter on quarter (q-o-q) by 2.76 per cent to N9.58 trillion in September 2019 from N9.33 trillion in June 2019.

According to the report, most of the pension fund assets were invested in FGN securities as its share of the total assets stood at 71.43 per cent (or N6.84 trillion) in September 2019, from a 69.55 per cent it recorded in June 2019.

The Commission said that investments in FGN securities include: N4.48 trillion amounting to 46.71 per cent in Bonds; N2.26 trillion in Treasury Bills (23.62 per cent); N10.69 billion in Agency Bonds (NMRC & FMBN), (0.11 per cent); N80.53 billion in Sukuk (0.84 per cent) and N13.38 billion in Green bonds, (0.14 per cent). It added that in line the the Multi-fund structure, Retirement Saving Account (RSA) Fund 1, N19.31 billion was invested; RSA Fund 11, N4.23 trillion; RSA Fund 111, N2.38 trillion and RSA Fund IV, N768.38 billion.

It explained further that N492.08 billion, which was 5.13 per cent of the funds, was invested in domestic ordinary shares while N65.14 billion, amounting to 0.68 per cent in foreign ordinary shares.

Pension operators invested N125.24 billion (1.31 per cent) in State Government’s Securities; Corporate bonds got N572.42 billion (5.97 per cent); Corporate Infrastructure bonds, received N17.79 billion, (0.19 per cent); Corporate Green Bonds, N31.74 billion, (0.33 per cent); Supra-National Bonds got N4.03 billion (0.04 per cent); commercial papers, N123.28 billion (1.29 per cent); Banks, N951.28 (9.93 per cent).

While open/close-end funds, N9.90 billion, (0.10 per cent); Reits, N11.91 billion, (0.12 per cent) Foreign Money Market Securities, N8.42 billion, (0.09 per cent); private equity fund, N32.05 billion, (0.33 per cent), Real Estate Properties, N231.48 billion, (2.42 per cent); infrastructure funds, N34.89 billion, (0.36 per cent) and cash & other assets, N26.47 billion, (0.28 per cent).

The Commission attributed the accumulation of over N9 trillion and other successes achieved since inception of implementation of the CPS to esteemed contributors.