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Pension funds not idle, PFAs make N2.2tn profit on 15 investment deals

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More insights have been given on the status of galloping coffers of the Contributory Pension Scheme introduced in 2004.

Though the Director-General of Pension Commission (PenCom), Mrs. Chinelo Anohu-Amazu revealed recently in Calabar during a seminar for senior journalists, that the fund has risen to over N5.96tn, some operators or Pension Fund Administrators have disclosed that investments they have made with contributors funds have yielded over N2.2tn profit from the investment of the funds in 15 different portfolios.

A new report from PenCom said the total assets under the CPS grew from N4.05tn in 2013 to N4.61tn in 2014 and rose to N5.3tn as of the end of 2015.

The report also shows that the funds have increased to the tune of N5.96tn and contrary to speculations that the funds are idle, PenCom said investments are ongoing in about 15 different portfolios, with the bulk of the money going into the FGN securities.

Details also show that PenCom specifically says that 58 per cent, totalling N3.49tn of the money, has been invested in the FGN bonds while N683.91bn, or 11.47 per cent of the funds, has been invested in treasury bills.

Besides, the operators have also invested 8.80 per cent of the funds, totalling N524.72bn, in domestic ordinary shares while N413.17bn or 6.93 per cent of the money has been invested in local money market securities.

The Commission revealed further that operators invest N294.3bn or 4.94 per cent of the funds in corporate debt securities while N214.8bn or 3.6 per cent of the money has gone into real estate properties.

They also invest N137.78bn, N85.49bn and N45.8bn, which translate into 2.31 per cent, 1.43 per cent and 0.77 per cent, in state government securities, foreign domestic shares and cash/other assets, respectively.

The report from PenCom added that the remaining funds of N23.96bn, N18.75bn, N12.48bn and N1.8bn, which represent 0.4 per cent, 0.32 per cent, 0.21 per cent and 0.03 per cent, have been invested in private equity fund, open/close-end fund, supra-national bonds and infrastructure funds, respectively.

At inception, the commission had produced investment guidelines, which regulate how the operators should invest the funds; and these regulations are subject to review when necessary.


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