Pension operators invest over N2.23tn - PenOp

Yola

 

Chuks Udo Okonta

Over N2.23 trillion pension fund has been invested by operators in Federal Government securities and other investment windows, Inspen has learnt.

The Chairman Pension Fund Operators Association of Nigeria (PenOp) and Managing Director Legacy Pension Managers Limited, Misbahu Yola, who disclosed this in Lagos, said amount which is 60 per cent of the N3.72 trillion has been invested in government bonds and other securities.

He debunked the belief in some quarters that the pension fund has been idle, adding that the fund has been invested according to the investment guidelines issued by the National Pension Commission (PenCom).

According to PenCom the sector has generated investible funds of more than N3.72 trillion invested in various financial instruments and the registration of about 5.82 million contributors into the Contribution Pension Scheme.

It noted that over N370 billion (13 percent) has been invested in money market, while N335 billion (12 per cent) was invested in ordinary share and real estate got N167.89 billion (six per cent).

It said state government securities got N109.24 (four per cent), corporate debt security got N72.10 billion (two per cent), unquoted securities N24.67 billion (one per cent) and other investment portfolio N23.49 billion (one per cent).

It noted that the regulation on investment of pension fund assets was revised to expand the allowable investment outlets to include alternative asset classes such as: Private Equity (PE) funds, infrastructure financing (Debt instruments and funds), supranational bonds, amongst others.

The commission said it would continue to review investment regulations, adding that multiple funds would be established and ethical fund introduced, adding that its guidelines on offshore investment being worked out to encourage operators explore foreign investment windows.