Pencom Records Increment as Pension Fund Rises To N10trn

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Following announced reports, Pension fund assets rose from N9.81trillion recorded on October 31, last year to N10 trillion in November 30, the monthly report which was announced recently reflects, as released by the regulator, the National Pension Commission (PenCom).

The fund grew by N18 billion in the period under review, representing a 1.84 per cent growth.

Similarly, the fund also grew from N9.58 trillion in September, 2019 to N9.81 trillion in October, representing 2.39 per cent and N22.8billion growth.

Besides, the fund, which stood at a deficit of N2trillion in 2004 hit the record high of N10 trillion last November.

The report showed that pension fund operators invested N7.08 trillion representing over 70 per cent of the fund in Federal Government of Nigeria Securities.

According to PenCom, the operators invested N4.85 trillion amounting to 48.6 per cent in FGN Bonds; N2.11 trillion in Treasury Bills (21.2 per cent); N10.8 billion in Agency Bonds (NMRC and FMBN),(0.11 per cent); N78.11 billion in Sukuk (0.78 per cent) and N15.64 billion in Green bonds, (0.16 per cent).

The report read: “A total of N535.9 billion, which is 5.36 per cent of the funds, was invested in domestic ordinary shares; while N68.56 billion, amounting to 0.69 per cent in foreign ordinary shares.

“The operators invested N117.7 billion (1.18 per cent) in State Government’s Securities; Corporate bonds got N597.4 billion (5.98 per cent); Corporate Infrastructure bonds, received N15.8 billion, (0.16 per cent); Corporate Green bonds, N26.5 billion(0.27 per cent); Supra-National Bonds got N4.1 billion (0.04 per cent); local money market, N1.17 trillion, (11.73 per cent) commercial papers, N95.26 billion (0.95 per cent); Banks, N1.07 trillion (10.77 per cent).

Others are, Reits, N11.56 billion, (0.12 per cent); Foreign Money Market Securities, N5.03 billion, (0.05 per cent); private equity fund, N32.31 billion, (0.32 per cent), Real Estate Properties, N244.6 billion, (2.25 per cent); infrastructure funds, N40.52 billion, (0.41 per cent) and cash and other assets, N45.14 billion (0.45 per cent).

Speaking about the reports, the Acting Director-General of PenCom, Mrs Aisha Dahir-Umar, said the CPS has introduced transparency and integrity in the pension administration system in the country.

She reiterated that from inception of the reform to date, there had not been a single incidence of fraud or mismanagement of the pension funds and assets under the Scheme.

Remarkably to note, Umar stated that the level of implementation of the Pension Reform Act (PRA) 2004 and now PRA 2014 by the Commission since the take off of the reform in 2004 has yielded positive reports.

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