Nigeria’s pension fund assets growth has declined by 2.06 per cent in the second quarter (Q2) of this year.
According to a new report compiled by the National Pension Commission (PenCom), it declined from 5.70 per cent recorded in Q1.
The report, which was obtained at the weekend in Lagos, showed that the total value of pension fund assets based on unaudited valuation reports grew from N7.94 trillion as at March 31 to N8.23 trillion as at June 30, representing a growth of 3.64 per cent.
This indicated a decreased growth rate compared to the 5.70 per cent for the previous quarter.
The breakdown of the pension assets investments by scheme type showed that as at Q2, the Retirement Savings Account (RSA) active fund had the largest portfolio of N5.57 trillion.
This represents 67.69 per cent of the total assets under management.
However, Closed Pension Fund Administrators (CPFAs) and Approved Existing Scheme (AESs) assets stood at N1.09 trillion and N947.92 billion, representing 13.20 per cent and 11.51 per cent of the total assets under management respectively.
The RSA Retiree Fund stood at N625.27 billion representing 7.60 per cent of the total assets.
A further breakdown of the pension industry portfolio indicated that the pension fund assets were mainly invested in Federal Government Securities, with allocation of 70.75 per cent of total pension assets under management.
While 49.08 per cent of the total fund was invested in FGN Bonds, 20.76 per cent was invested in Treasury Bills, 0.10 per cent in Agency Bonds, 0.71 per cent in Sukuk Bonds and 0.09 per cent in Green Bonds.
This was slightly higher than the 70.39 per cent recorded in Q2. The increase in the value of Bonds was partly due to new investments and accrued coupons.
The reports also showed that the comparative pension industry portfolio for the period ended June 30 and March 31 this year as well as the variance between both periods.
