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SpanishNigeria. N8.4trn Pension investment to promote industry – PENCOM
The National Pension Commission (PenCom) has clarified that pension funds are not lent out but invested in FGN Bonds, Treasury Bills and other financial instruments yielding profit over time.
The funds which stood as at N8, 499,891.97 trillion as at November 2018 have depleted through borrowing to corporate entities, states among others.
A document exclusively obtained from PenCom by Blueprint showed the FGN Bonds gulped N4, 439,561.29 trillion, representing 52.23 per cent of the total amount, while investments in Treasury Bills amounted to N1, 685,453.27 trillion which is 19.83 per cent.
According to the document, total investments in FGN Bonds totalled N6, 162,999.71 trillion which is 72 per cent of the funds. Investment in domestic ordinary shares took N584, 321.06 or 6.87 per cent, while foreign ordinary shares got N60, 529.26 or 0.71 per cent.
N9, 407.22 or 0.11 per cent was invested in agency bonds, while N23, 919.32 or 0.26 went into Sukuk bonds. Also, Green bonds got N4, 658.60 or 0.05 per cent, as state government securities got N143, 841.37 or 1.69 per cent invested in it.
Similarly, corporate debts got N522, 511.51 or 6.15 per cent, corporate bonds got N515238.67 or 6.06 per cent investment, corporate infrastructural bonds got N7, 272.83 or 0.09 per cent and supra-national bonds got N6, 201.65 or 0.07 per cent investment.
The document further showed N705,786.76 or 8.30 per cent was invested in local money market securities, bank placements got N636,987.62 or 7.49 per cent investment, just as N68,799.14 or 0.81 was invested in commercial papers.
It was further gathered that foreign money market securities got N2, 914.14 or 0.03 per cent, while N15, 765.26 or 0.19 per cent was invested in mutual funds.
Open/close-end funds, PenCom said, got N10, 256.36 or 0.12 per cent investment during the period, while REITs had N5, 508.90 or 0.06 percent and real estate properties got N226, 289.65 or 2.66 per cent investment.
Others, as stated in the document were; Private equity funds N40, 415.75 of 0.48 per cent, infrastructure funds N15, 572.94 or 0.18 per cent of the total amount; and cash and other assets got N12, 742.93 or 0.15 per cent investment, bringing all to a grand total of N8, 499,891.97 trillion.
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