FG Securities Get A Whopping 72% Of Entire N9Trn Pension Fund Investment

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FG SECURITIES

FG Securities Get A Whopping 72% Of Entire N9Trn Pension Fund Investment

Pension Fund Administrators invested a whopping N6.5trillion representating 72% in Federal Government securities out of the entire N9.03Trn pension assets available as at March 31st, 2019, according to a report from the National Pension Commission.

Out of the total N9.03tn pension assets as of March 31, 2019, about N6.5tn, representing 72.06 per cent of the entire fund, was invested in Federal Government securities by Pension Fund Administrators.

The figures are contained in a report for the industry obtained by Punch Newspaper on Friday from the National Pension Commission.

An analysis of the report showed that while the Federal Government’s securities took a huge chunk of the pension assets, state government bonds and corporate bonds took the balance of 27.94 per cent.

A breakdown of the figures showed that the highest amount of N4.46tn was invested in Federal Government bonds alone.

This was followed by N1.94tn investment in Treasury bills while N94.11bn, N11.9bn and N8.5bn were invested in Sukuk bond, agency bond and green bond, respectively.

The N8.5bn agency bond, according to the commission, was invested in two government agencies, namely the Nigeria Mortgage Refinancing Company and the Federal Mortgage Bank of Nigeria.

The commission said in the report that the sum of N144.3bn was invested by PFAs in state governments’ securities.

For the private sector, an analysis of the report showed that the sum of N590.61bn was invested in domestic ordinary shares, while foreign ordinary shares had a total investment of N62.6bn.

Other security instruments where funds were invested were corporate bonds, with N478.1bn; infrastructure bonds, N29.4bn; and supra-national bonds, N5.37bn.

Similarly, the sum of N22.54bn was invested by the PFAs in foreign money market securities; N24.96bn in mutual funds; N231.34bn in real estate properties; N32.34bn in private equity fund, while cash and other asset investments had N25.17bn.

The report reads in part:

“A breakdown of pension industry portfolio indicates that the pension fund assets were mainly invested in Federal Government Securities, with an allocation of 72 per cent of the total pension assets.

“The value of investments in domestic ordinary shares was N590.61bn as at 31 March, 2019, indicating a decrease of N15.59bn compared to the value of N606.2bn as at 31 December, 2018.

“The decrease in the value of investments in domestic ordinary shares was primarily due to the market price depreciation of some stocks during the period, as the Nigerian Stock Exchange All Share Index, and market capitalisation depreciated by 1.24 per cent and 0.43 per cent respectively, from N11.72tn, as at 31 December, 2018 to N11.67tn, as at 31 March, 2019.”



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