Pension fund rebounded in March with N92bn gain after two months of decline.
ALEDEH News reports that Nigeria’s total pension assets edged up by N92 billion from the N12.248tn it was in February to N12.34 trillion in March 2021.
This was disclosed in Nigerian Pension Commission ‘Unaudited report on pension funds industry portfolio for the period ended March 31, 2021’ published on its website.
The assets had lost N7bn in January and another N52bn in February.
Breakdown of the portfolio of Pension Fund Administrators (PFAs) investment in March 2021 revealed that N8.5 trillion of the funds was in Federal Government’s securities.
Other investment portfolios where the funds were invested included domestic and foreign ordinary shares; corporate debt securities comprising of corporate bonds, corporate infrastructure bonds, corporate green bonds and supranational bonds.
The funds were also invested in local money market securities comprising bank placements, commercial papers and foreign money market securities.
The Pension Fund Administrators invested the rest in mutual funds comprising open/close-end funds, REITs, real estate properties, private equity funds, infrastructure funds, cash and other assets.
President of the Association of Pension Fund Operators of Nigeria, Wale Odutola noted that the two months could not be used to judge the long term trend.
“What you should pay attention to more is the yearly trend and how it had moved on on a yearly basis over a long time.
“That gives you a better sense of what the trend is,” he said.
Odutola explained that the pension funds were largely invested in fixed income securities and when those securities accumulate in the market with rising interest rates, the value of the securities would decline.