Pension Funds not lying idle – PenCom DG
The accumulated pension fund assets which presently stand at N5.31 trillion are not lying idle in any bank account as alleged by those who do not understand the working of the contributory pension scheme (CPS).
This was disclosed by the director-general of the National Pension Commission (PenCom), Mrs. Chinelo Anohu-Amazu.
Anohu-Amazu noted that all pension funds were invested according to the industry’s investment guidelines, stressing that the industry’s investment guidelines specified how the funds are to be invested.
The commission however disclosed that fund assets which stood at N5.21 trillion as at November 2015, was carefully invested, with the federal government’s securities getting the lion’s share of N3.49 trillion amounting to 66.41 per cent.
A breakdown of investment showed that N505.71 billion (9.97 per cent) was invested in domestic ordinary shares; N69.10 billion (1.35 per cent) in foreign ordinary shares; federal government’s securities, N3.49 trillion (66.41 per cent) including bonds, N2.95 trillion (56 per cent) and treasury bills, N480.26 billion (10 per cent).
Also, state governments’ securities got N157.13 billion (3.14 per cent); corporate debt securities, N179.45 billion (3.04 per cent); supra- national bonds, N12.69 billion (0.22 per cent); local money market securities, 516.18 billion (10.39 per cent); foreign money market securities, N645 million (0.01 per cent) and open/closed end fund, N19.36 billion 0.42 per cent.
According to PenCom, real estate properties got N231.25 billion (4.52 per cent); private equities funds, N13.43 billion (0.34 per cent); infrastructure funds, N1.40 billion (0.02 per cent); cash and other assets, N58.71 billion (0.70 per cent) and other liabilities, N38.02 billion (0.52 per cent).
Anohu-Amazu further explained that some investors did not get funds from the industry because they failed to meet the requirements in the guidelines.
“The commission is willing to investment in infrastructure and other projects, but the terms and conditions spelt out in the investment guidelines must be strictly adhered to. The commission and pension operators would not bend the rules to please anybody,” she said.