PenCom records N13 trillion pension fund assets in Q3 2021

The National Pension Commission (PenCom) has recorded N13 trillion pension fund assets in the third quarter ended September 30, 2021.

This is contained in the Third Quarter Report in the PenCom website.

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According to the statistics highlight show that pension fund assets invested in Federal Government securities accounted for 63.25 per cent of total assets. The composition of investments were as follows: FGN bonds 92.20 per cent, treasury bills 3.45 per cent and agency bonds, sukuk and green bonds accounted for 1.29 per cent.

The value of increase in the assets was 2.72 per cent translating to N343.99 billion to close at N13 trillion, the pension net asset value as at the end of Q2 (June 2021) was N12.66 trillion.

PenCom report noted the growth in Q3 2021 was slightly higher than the growth of N317 billion (2.27 percent) recorded in Q2 2021. It was noted that inflows of N7.80 billion were observed in fund IV (ethical fund), which commenced in Q3 2021.

PenCom ranking by size of contribution during Q3 indicated that top five contributed N127.04 billion (65.12 percent) stretching it to top 10 came to N163.15 billion (83.63 per cent), however, bottom five accounted for N7.76 billionnt (3.98 per cent) while bottom 10 contributed N23.37bn (11.98 percent).
The statistics highlight the portfolio distribution of N9.14trn in RSA active funds (RSA funds I, II, III, and VI); N1.05trn in RSA retiree fund; N1.48trn in CPFAs; N1.31trn in approved existing schemes (AES) and N7.80bn for RSA fund VI, active and retiree.

Also the value of investment in quoted domestic ordinary shares stood at N873.49bn (6.72percent) of total assets under management), indicating an increase of N30.29bn (3.59 percent) compared to the N843.29bn invested in the asset class as at 30 September 2021.

The value of investments in domestic quoted equities increased primarily due to the appreciation in the prices of some stocks during the reporting period. Besides, the Nigeria Exchange pension (NSE-PI) further appreciated by 6.10 percent in Q3 2021 after an 8.90 percent appreciation in Q2 2021.

On investment in FGN securities the value decreased by N252.24bn (2.98 percent) to N8.22trn as at 30 September 2021 from N8.47trn as at 30 June 2021. The report stated the value of investments in FGN securities was majorly due to matured investments in treasury bills deployed to other asset classes during the quarter.

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