Pension assets grow by 25% to 12.3trn in 2020

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Transfer Window: Over 2,100 change PFAs over poor servicesBy Rosemary Iwunze

The pension fund assets of the Contributory Pension Scheme, CPS, grew by 25.3 percent, year-on-year (y/y),   to N12.29 trillion in 2020 from N9.81 trillion in 2019.

The 25 percent growth recorded last year represents 7.7 percentage increase when compared with the 17.6 percent,y/y growth recorded in 2019.

Disclosing this in its   December 2020 monthly report,   the National Pension Commission, PenCom, said that the number of Retirement Savings Account, RSA, holders rose   by 17.5 percent to   9.22 million in 2020 from 7.85 in 2019.

Further analysis of the report shows that Pension Fund Administrators, PFAs, invested N8.13 trillion of the fund in federal government’s securities, up by 10.8 percent percent from N7.34 trillion in 2019.

Further   breakdown of the fund invested in government securities   N6.83 billion   was invested in FGN Bonds, 27.7 by percent from N5.35 trillion in 2019; N628.22 billion was invested in Treasury Bills, down by 19 percent percent from N1.88 trillion in 2019; Agency Bonds got N9.49 billion, down by 23.5 percent from N11.72 billion in 2019; Sukuk Bonds received N646.93 billion up by 674.7 percent from N83.5 billion in 2019;   Green Bond got   N13.05 billion, down by   15.5 percent from N15.5 billion 2019.

Furthermore, the PFAs invested N1.69 trillion in local money market securities N1.69 trillion up 41.7 percent from N1.2 trillion in 2019.

This was followed by Bank placements, which received N1.53 trillion, up by 36.4   percent from N1.1 trillion in 2019.

Other investment by the PFA are: Domestic Ordinary shares which received N858.46 billion, up by 55.3 percent from N552.8 million in 2019;    Foreign ordinary shares got N92.92 billion, up by 30.3 percent from N71.3 billion in 2019; state government securities got N136.59 billion up by 18.7 percent from N115.1 billion in 2019;

Corporate debt securities got N836.34 billion up by 47.5   percent from N566.8 billion in 2019; Foreign money market, N18.69 billion up by 252.8 percent from N5.3 billion in 2019;

Infrastructure funds N66.43 billion up by 75.2 percent from N37.9 billion in 2019; Commercial papers received, N156.69 billion, up by 34.2 percent from N116.8 billion in 2019;   while cash and other assets received N122.79 billion up by 93.7 percent from N63.4 billion   in 2019.

Vanguard News Nigeria

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