Total pension assets rise to N7.79tn

The total pension assets under the Contributory Pension Scheme rose to N7.79tn as of the end of February.

Figures obtained from the National Pension Commission on Friday revealed that the fund rose from N4.6tn at the end of the 2014 financial period to N5.3tn in 2015. For the 2016 financial period, the assets stood at N6.16tn.

At the end of November 2017, the total pension assets under the CPS were N7.4tn.

Last year, the commission reviewed the regulations for the investment of pension funds, stating that the PFAs must offer a multi-fund structure for the Retirement Savings Accounts of contributors and that there would be a transition period of six months, effective from the commencement date of the multi-fund structure, for all the PFAs to restructure their respective portfolios.

While speaking on one of the guidelines, an official of PenCom, Mr. Babatunde Philips, said in 2017, PenCom released the amended regulation on investment of pension fund assets.

He noted that the new investment guidelines introduced a multi-fund structure, which replaced the former structure that put all active contributors into one Retirement Savings Account fund without consideration for age or risk profiles of such contributors.

Under the new structure, he explained that all PFAs offered the multi-fund structure for the RSA which comprises four funds and differs based on overall exposure to variable income instruments, and that the different funds were made to fit the ages and risk profiles of contributors.

“The fund types include Fund I, which is for young contributors based on choice; Fund II for young and middle-aged contributors (ages 49 years and below); Fund III: for pre-retirees (ages 50 years and above) and Fund IV for retirees,” he said.

According to the commission, the PFAs have invested the funds in different investment portfolios such as the Federal Government’s bonds and treasury bills and state governments’ securities.

Other areas, where the funds are invested, are agency bonds, supra-national bonds, commercial papers, foreign money market securities, and open/close-end funds.

Other investment portfolios, where the operators have invested the fund, are real estate investment trusts, private equity funds, infrastructure funds, cash and other assets.