The recent report released by National Pension Commission for the third quarter of 2019 showed that the total value of pension assets rose quarter on quarter (q-o-q) to N9.58 trillion in September.
It represents a growth of 2.76 per cent compared with N9.33 trillion reported in June 2019.
According to the report, most of the pension fund assets were invested in FGN securities as its share of the total assets stood at 71.43 per cent or N6.84 trillion in
September 2019, from a 69.55 per cent reported in June this year.
The report also revealed that the Pension Fund Administrators (PFAs) piled up money in Local Money Market Securities (LMMS), although its share of the total assets was flattish q-o-q at 11.21 per cent or N1.07 trillion within the period under review.
Meanwhile, total invested fund in Corporate Debt Securities as a percentage of total pension fund assets stood at 6.49 per cent or N0.62 trillion in September 2019 from 5.42 per cent in June 2019.
However, funds invested in Real Estate Properties as a fraction of the total pension fund assets dropped to 2.42 per cent or N0.23 trillion from 2.68 per cent or N0.25 billion in the period under review.
Similarly, Cash and Other Assets which constitute 0.28 per cent or N26.47 billion of the total pension fund assets in September 2019 declined from 2.30 per cent or N214.21 billion in June 2019.
Further breakdown of the N6.84 trillion FGN Securities revealed that investment in FGN Bonds, by the PFAs gulped N4.48 trillion in September 2019, rising from a N4.44 trillion it recorded in June 2019. Investment in Treasury Bills rose to N2.26 trillion in September 2019, from N1.94 trillion in June 2019; however, investments in Sukuk and Green Bonds were relatively low as their respective shares of allocated pension assets stood at N80.53 billion and N13.38 billion in the quarter under review.
