Of the pension fund assets worth N11.09 trillion recorded by Pension Fund Administration (PFAs) in the Second Quarter of the year, about N7.43 trillion or 67 per cent, was invested in Federal Government Securities, the Acting Director-General, National Pension Commission (PenCom), Mrs Aisha Umar-Dahir, has said.
She made this known in a document on pension fund investment released over the weekend entitled: “PenCom Second Quarter 2020 Report”, obtained by The Nation.
She stated that the 67 per cent investment Federal Government Securities was traded with an allocation of 57 per cent in FGN Bonds, nine per cent in Treasury Bills, one per cent in Sukuk Bonds, while less than one per cent was allocated to Agency Bonds and Green Bonds.
She said the value of investments in Domestic Quoted Ordinary Shares was N524.77 billion, which represents five per cent of the assets under management as at June 30, an increase of N82.82 billion or 18.74 per cent compared to the value of N441.94 billion as at March 31, 2020.
She said the increase in the value of investments in domestic quoted equities, was primarily due to the appreciation of some stocks prices during the reporting period, as the Nigerian Stock Exchange All Share Index (NSE-ASI) appreciated by 15.05 per cent from 21,300.47 basis points as at March 31, 2020 to 24,479.22 bps as at June 30, 2020.
Mrs Dahir-Umar stated that the value of investments in FGN Bonds increased by N706.41 billion, or 12.60 per cent, FGN Sukuk by N27.43 billion and Agency Bonds by N0.52 billion, while investments in Treasury Bills decreased by N297.53 billion or 22.58 per cent.
She explained that the reduction in the value of the Treasury Bills was due to maturities and reallocation to other asset classes, mainly FGN Bonds and other Money Market Securities.
She added that the total value of pension fund assets based on unaudited valuation reports grew from N10.33 trillion as at March 2020 to N11.09 trillion as at June, 2020, representing a growth of 7.36 per cent, noting that the growth was mainly due to market valuation of quoted equities.