Pension funds invested in banks amount to 2.05 billion naira – PenCom

The total amount of pension funds invested in banks by pension fund administrators rose to 2.05 billion naira at the end of July from 1.48 billion naira in January.

The National Pensions Commission revealed this in its report, entitled “Unaudited report on the portfolio of the pension fund industry for the period ended July 31, 2021”.

He said the total assets under the contributory pension scheme amounted to N12.78 billion during the period under review.

The commission said traders had invested a substantial portion of the pension funds in federal government bonds, treasury bills and state government securities.

The PenCom report indicates that some of the funds were invested in agency bonds, supranational bonds, commercial papers, foreign money market securities and open / closed funds.

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

According to Agusto & Co, a pan-African credit rating agency, the net assets of the Nigerian pension sector are expected to reach the 20 billion naira mark by 2023, registering an average growth of 18% over the next three years.

He said in his 2021 Insurance Sector Report that the growth in assets under management in the pension sector had been largely driven by investment returns and additional contributions, to a lesser extent.

Copyright PUNCH.

All rights reserved. This material and any other digital content on this website may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without the express prior written permission of PUNCH.

Contact: [email protected]