According to a recent report released by the National Bureau of Statistics(NBS) for the third quarter of 2017, the pension fund assets under management recorded an increase of N332 billion, from N6.832 trillion to N7.164 trillion.
The report also showed that Pension Asset and Membership Data (Q1-Q3 2017) had 7,710,564 workers who were registered under the pension scheme compared to 7,589,936 registered workers in Q2, reflecting a growth of 120,628 workers.
The pension fund assets were invested in various asset classes by approved existing scheme (AES), closed pension fund administrators, retirement savings account (RSA) active fund as well as RSA retiree fund.
A breakdown of the total pension assets revealed that with N4.339trn, RSA active fund formed the largest chunk of the lot, while CPFAs, which stood at N895.811billion, trailed it, followed by AES with N696.309 billion; and RSA retiree fund, N484.026 billion.
A further breakdown showed that the pension fund assets were held in asset classes namely, domestic ordinary shares and foreign ordinary shares; FGN securities; local money market securities, open/closed-end funds and real estate properties. Others are private equity fund, infrastructure fund and cash and other assets.
Pension fund investment in FGN Bonds had the highest weight of 54.09 percent of the total assets; and was followed by the one in Treasury bills with 17.73 percent. While domestic ordinary shares represented 8.66 percent of the total pension assets, foreign ordinary shares accounted for 1.41 percent. Infrastructure funds had the least with 0.07 percent weight.
In the FGN Securities asset class, investment in agency bonds-NMRC and FMBN bonds- represented 1.30 percent, while state government securities were 2.29 percent of the total. Others in that category were the corporate debt securities and supra-national bonds accounting for 3.98 percent and 0.19 percent, respectively of the total assets.
For the local money market securities, pension assets with the banks were 5.56 percent, while investment in commercial papers and foreign money securities accounted for 0.47 percent and 0.34 percent, respectively of the total.
Apart from the Real Estate Investment Trust Scheme (REITS), which attracted 0.16 percent of the pension fund assets, real estate properties gulped 3.45 percent of the total.
While private equity fund took 0.27 percent of the assets, cash and other assets accounted for 0.19 percent of the total. Similarly, during the third quarter, participants within the age distribution below 40 years had the highest percentage composition, closely followed by participants that were less than 30 years and within the age bracket of 40 – 49 years. The participants above 60 years had the least percentage composition.