Pension investment in federal government securities account for 61% of total assets – PenCom

In the latest overview of pension industry fund portfolio report, the National Pension Commission (PenCom)has indicated that pension funds’ assets were mainly invested in Federal government securities, accounting for 61.26 of total assets.
The composition of investments in Federal government securities were as follows: federal government bonds:92.20%; treasury bills: 3.45% and agency bonds, sukuk and green bonds accounting for 1.29%.
These facts were made known in the recent industry report made public by PenCom. The industry’s Net Asset Value (NAV) also increased as at reporting date by 3.38%, (meaning N453.76bn) to N13.88trn; compared to Net Assets Value (NAV) of N13.42trn as at 31st December 2021.
The industry growth in quarter one of 2022 was higher than the growth of N423.65bn (3.26%) recorded in quarter Q4 2021. This growth was mainly due to contributions received and market valuation of federal government bonds, as well as quoted equities.
Taking a look at the comparative analysis of the pension industry portfolios for the period ended December 31st 2021 and March 2022; the value of investments in quoted ordinary shares stood at N944.26bn(3.16%); compared to the N915.31bn invested in the asset class as at 31st December 2021.
The increase in the value of investments in the domestic quoted companies, according to the PenCom report was primarily due to the increase in the price of some stocks during the reporting period, as the pension index (NSE-PI) further appreciated by 9.95% in Q1-2022
The value of investments in Federal government decreased by N271.62bn (3.10%) to N8.50trn as at 31st March 2022 from N8.77trn as at 21st December 2021. The Commission attributed the decrease in value of investments in FGN securities majorly to the mature investments in the asset classes during the quarter.
The total value of pension fund assets as at 31st March 2022 stood at N13.88trn, according to PenCom report and comprised of N9.81trn in RSA active funds:(RSA fund 1,11, 111 and V); while N1.10trn is RSA retiree fund (fund 1V); N1.54trn for CPFAs; N1.42trn in Approved Existing Schemes, while fund V1, for active and retiree fund amounted to N23.16bn.

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