Pension funds to hit N10tr by Dec

Pension funds to hit N10tr by DecGoing by the steady growth projection of pension funds assets, the funds may hit N10 trillion by December.

The funds, which has been growing at the rate of over N100 billion  monthly, since January 2019, stood at N9.33 trillion in June.

This was shown in the monthly pension funds’ summary report by the National Pension Commission (PenCom).

The PenCom regulates and supervises the fund while Pension Fund Administrators (PFAs) manages and invests the fund for contributors and retirees under the Contributory Pension Scheme (CPS).

The fund had grown to N8.74trillion in January; N8.91trillion in February; N9.03 trillion in March.; N9.12 trillion in April, N9.22 trillion in May and N9.33 trillion in June, making it to grow by N686 billion in six months.

The more than N100 billion growth mark beats the N25 billion projection witnessed in the funds before 2017.

Meanwhile, the report showed that a major chunk of N7.21 trillion out of the N9.33trillion recorded in June is from Retirement Savings Accounts (RSA) holders.

A further breakdown of the June report under review showed that out of the RSAs’ fund of N7.21 trillion, retirees fund, categorised under Fund IV is N751.73billion while contributors, categorised under Fund I, Fund II and Fund III, own N6.51 trillion.

Other contributions to the fund include N958.2 billion from existing schemes and N1.24 trillion from Closed Pension Fund Administrators (CPFAs).

Meanwhile, the PFAs, the report indicated, invested a major chunk of the fund, totaling of N6.48 trillion into Federal Government Securities out of the N9.33 trillion in the period under review.

Out of the N6.48trillion invested by the PFAs, N4.43 trillion was invested  in Federal Government Bonds; N1.93 trillion in Treasury Bills; N11billion in Agency Bonds (NMRC and FMBN); N86 billion in Sukuk Bonds; N12 billion in Green Bonds and N129 billion in state government Securities.

The PFAs, however, invested N505.82 billion in corporate debt, while N1.04trillion was invested in Local Money Market Securities and N23 billion in Mutual Funds.

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