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Pension funds passed N20 trillion mark in May – PenCom

The worth of pension funds in Nigeria elevated by 2.23 % month-on-month to cross the N20 trillion mark to N20.23 trillion in Might 2024.

In line with the unaudited Pension Funds Business Portfolio Report for the interval ended Might 31, 2024, launched by the Nationwide Pension Fee, the Pension Funds Directors’ investments in FG securities remained excessive and even elevated in the course of the interval beneath assessment, holding 63.22 % of the whole funds.

Funding in authorities bonds stood at N12.79 trillion, in comparison with N12.40 trillion in April.

PFAs additionally shed about 10.83 % of funds into company bonds, with company bonds taking the biggest share.

Specialists attribute the PFAs’ curiosity in authorities bonds and cash market devices to the aggressive stance of the Central Financial institution of Nigeria, which has been elevating key rates of interest in an try to scale back market liquidity.

Engaging rates of interest have led traders, together with pension funds, to allocate extra capital to mounted earnings securities in an effort to obtain increased returns for his or her funds and traders.

Amid excessive rate of interest ranges within the cash market, pension funds’ investments declined barely to N1.93 trillion from N1.95 trillion within the earlier month.

Curiosity in mutual funds elevated in Might in comparison with April, when that market section confirmed a decline.

In April, mutual funds fell by 19.93 % month-on-month to N85.19 billion, in comparison with N106.39 billion in March.

Nonetheless, in Might, investments in mutual funds confirmed a rise to N95.28 billion.

On the finish of Might, pension funds recorded a month-to-month enhance of N440.40 billion, the second highest month-to-month enhance this yr after N1.18 trillion in January.

Within the first 5 months of the yr, pension funds elevated in worth by N1.87 trillion and on a year-on-year foundation, pension funds elevated by N4.12 trillion.

Between Might 2023 and Might this yr, the variety of members of the Pensioner Financial savings Account additionally elevated by 356,795 or 3.57 % to 10,351,624.

In the meantime, the Nationwide Insurance coverage Fee had ordered African Alliance Insurance coverage Plc to resolve and settle the excellent claims of its clients.

This adopted what the fee described as a rise in complaints from annuitants and insurance coverage claimants in opposition to African Alliance Insurance coverage Plc concerning the corporate’s delay and/or incapacity to fulfill its obligations.

NAICOM reported that it just lately summoned the board of administrators of African Alliance Insurance coverage to its headquarters in Abuja and directed the corporate to clear excellent funds to annuitants and claimants.

They have been additionally requested to submit a restoration plan to handle the challenges presently going through the corporate, which required the corporate to be positioned beneath the supervision of the fee.

The regulator warned that it will not hesitate to take motion if the corporate failed to fulfill its deadlines.

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