Pension Fund Assets Fall To N19.69 trillion In March – PenCom

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According to data from the National Pension Commission (PenCom), the assets of Nigeria’s pension funds decreased slightly to N19.669 trillion at the end of March 31, 2024.

In comparison to the N19.759 trillion recorded as net asset value (NAV) in February 2024, this implies a minor decline of around 0.45%. This was mentioned in the commission’s March 2024 monthly report that PenCom published.

The study states that the net asset value of all pension funds decreased to N19.669 trillion in March from N19.759 trillion the previous month.

  • A closer look at the data reveals that investment in FGN securities continues to dominate portfolio allocation with about N12.200 trillion or 62.03% of total net asset value (NAV).
  • Pension Funds also allocated N2.058 trillion to corporate debt securities and N1.779 trillion to money market Instruments.
  • Investments in ordinary shares of local companies rose by 8.72% to N2.082 trillion from N1.915 trillion in February.

Fund allocation

Fund II, which is the default RSA Fund under the Multi-Fund Structure, maintained the largest share of the Active RSA Funds allocation with N8.331 trillion or 42.35% of the total fund NAV.

  • Fund III also rose by 1.19% from N5.112 trillion to N5.173 trillion maintaining its second position for fund allocation.
  • Meanwhile, RSA membership for March 2024 rose by 0.22% to 10,280,956 from 10, 258,611 members in February 2024.

Pension funds’ NAVs have risen from N14.9 trillion in December 2022 to N19.7 trillion in March, representing or a whopping N4.8 trillion or 32.21% increase.

  • For context, between 2021 and 2022, pension fund assets rose by just N1.57 trillion from N13.42 trillion to N14.99 trillion
  • The rise is likely linked to a combination of a surge in pension fund contributions and a rise in portfolio values.
  • For example, FGN Securities has seen its Net Asset Values rise from N9.64 trillion in 2022 to N11.89 trillion as of March 2024.

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