Pension funds assets may hit N10trn by December
…As funds steady at N9.33trn in June
Due to steady growth projection witnessed by the pension funds’ assets, the funds may hit N10 trillion by December, the National Pension Commission (PenCom) has disclosed.
The funds, which have been growing at the rate of over N100 billion monthly, since January 2019, stood at N9.33 trillion in June.
According to a monthly pension funds’ summary report by the Commission, the fund had grown to N8.74trillion in January; N8.91trillion in February; N9.03 trillion in March.; N9.12 trillion in April, N9.22 trillion in May and N9.33 trillion in June, making it grow by N686 billion in six months.
The PenCom regulates and supervises the fund while Pension Fund Administrators (PFAs) manages and invests the fund for contributors and retirees under the Contributory Pension Scheme (CPS).
The more than N100 billion growth marks beat the N25 billion projections witnessed in the funds before 2017.
Meanwhile, the report showed that a major chunk of N7.21 trillion out of the N9.33trillion recorded in June is from Retirement Savings Accounts (RSA) holders.
A further breakdown of the June report under review showed that out of the RSAs’ fund of N7.21 trillion, retirees fund, categorised under Fund IV is N751.73billion while contributors, categorised under Fund I, Fund II and Fund III, own N6.51 trillion.
Other contributions to the fund include N958.2 billion from existing schemes and N1.24 trillion from the Closed Pension Fund Administrators (CPFAs).
Meanwhile, the PFAs, the report indicated, invested a major chunk of the fund, totalling of N6.48 trillion into Federal Government Securities out of the N9.33 trillion in the period under review.
Out of the N6.48trillion invested by the PFAs, N4.43 trillion was invested in Federal Government Bonds; N1.93 trillion in Treasury Bills; N11billion in Agency Bonds (NMRC and FMBN); N86 billion in Sukuk Bonds; N12 billion in Green Bonds and N129 billion in state government Securities.
The PFAs, however, invested N505.82 billion incorporate debt, while N1.04trillion was invested in Local Money Market Securities and N23 billion in Mutual Funds.
