PFAs invest N1.03 trillion pension assets in banks – Report

Matthew Otoijagha

Pension Fund Operators (PFO) have invested over N1.03 billion out of the N9.37 trillion total fund assets in banks in the country, data from PenCom have shown.

According to data obtained from the National Pension Commission (PenCom), the banking sector seemed to be enjoying investment from pension operators as N940.68 billion was invested as at June 30, 2019, which moved up to N1.03 trillion to July.

PenCom in the summary of pension fund assets as at July 31, 2019, published on its website, stated that Pension Fund Operators (PFOs) invested N6.63 trillion, which is 70.77 per cent of the N9.37 trillion pension assets in Federal Government’s securities.

The pension industry regulator noted that investments in FGN securities include: N4.49 trillion amounting to 47.93 per cent in Bonds; N2.04 trillion in Treasury Bills (21.82 per cent); N10.10 billion in Agency Bonds (NMRC & FMBN), (0.11 per cent); N75.34 billion in Sukuk (0.80 per cent) and N9.88 billion in Green bonds, (0.11 per cent).

PenCom noted that in line the Multi-fund structure, Retirement Saving Account (RSA) Fund 1, N16.73 billion was invested; RSA Fund 11, N4.12 trillion; RSA Fund 111, N2.29 trillion and RSA Fund IV, N757.62 billion.

It stated that N482.51 billion, which was 5.15 per cent of the funds, was invested in domestic ordinary shares; while N65.24 billion, amounting to 0.70 per cent in foreign ordinary shares.

The pension industry regulator maintained that pension operators invested N130.22 billion (1.39 per cent) in State Government’s Securities; Corporate bonds got N515.64 billion (5.50 per cent); Corporate debt securities, N534.37 billion, (5.70 per cent); Corporate Infrastructure bonds, received N5.34 billion, (0.50 per cent); Corporate Green Bonds, N13.40 billion, (0.14 per cent); Supra-National Bonds got N5.87 billion (0.06 per cent); commercial papers, N104.58 billion (0.1.12 per cent); Banks, N1.03 trillion (11.03 per cent).

Others are, Open/Close-end funds, N11.20 billion, (0.12 per cent); Reits, N11.79 billion, (0.13 per cent) Foreign Money Market Securities, N7.20 billion, (0.08 per cent); private equity fund, N33.33 billion, (0.36 per cent), Real Estate Properties, N241.11 billion, (2.57 per cent); infrastructure funds, N30.14 billion, (0.32 per cent) and cash & other assets, N46.76 billion, (0.50 per cent).

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