The pension industry net assets value NAV of the pension fund assets in Q2 2021, shot up by N317.21bn or 2.57%. The stats of the period under review notes that the increase brought the NAV to N12.66tr from N12.34tr as at March 2021.
The National Pension Commission noted that the growth of N317bn recorded in NAV Q2 was higher than the growth of N33.80bn (0.27%) recorded in Q1: 2021, mainly due to contributions received and the market valuations of FGN bonds and equities.
PenCom stated that the value of investments in quoted ordinary shares stood at N948.39bn, representing 7.49% of total assets under management and indicated an increase of N9.59bn or 1.02% compared to N938.80bn as at 31st March 2021.
The pension regulator attributed the increase in the value of investments in domestic quoted equities to appreciation in the prices of some stocks during the period, as the Nigerian Exchange pension index appreciated by 8.60% in Q1: 2021.
Pertaining to FGN securities, PenCom stated that the value of investments was fairly stable as it dipped slightly by N31.48tr (0.37%) to N8.47tr as at June 2021 from N8.51tr as at March 2021.
However, the Commission said the slight diminution in the value of investments in FGN securities was majorly due to matured investments in treasury bills deployed to other asset classes during the quarter.
Table 12 Comparative Pension Industry Portfolio Q1: 2021 vs Q2: 2021
| TOTAL PENSION FUND ASSETS | TOTAL PENSION FUND ASSETS | VARIANCE | ||||
| 31-Mar-21 | 30-Jun-21 | Mar -Jun 21 | ||||
| ASSET CLASS | ₦‘Billion | Weight % | ₦‘Billion | Weight % | ₦‘Billion | Weight % |
| Dom es tic Ordinary Shares | 841.798 | 6.82 | 843.197 | 6.66 | 1.40 | 0.17 |
| Foreign Ordinary Shares | 97.005 | 0.79 | 105.191 | 0.83 | 8.19 | 8.44 |
| FGN Securities : | 8,506.38 | 68.93 | 8,474.90 | 66.96 | (31.48) | -0.37 |
| FGN Bonds | 7,673.77 | 62.19 | 7,814.19 | 61.74 | 140.42 | 1.83 |
| Treas ury Bills | 721.74 | 5.85 | 548.13 | 4.33 | (173.61) | -24.05 |
| Agency Bonds (NMRC) | 12.91 | 0.10 | 13.60 | 0.11 | 0.69 | 5.34 |
| Sukuk | 85.07 | 0.69 | 86.10 | 0.68 | 1.03 | 1.21 |
| Green bonds | 12.88 | 0.10 | 12.88 | 0.10 | (0.00) | -0.01 |
| State Govt. Securities | 109.36 | 0.89 | 97.99 | 0.77 | (11.37) | -10.40 |
| Corporate Debt Securities | 620.57 | 5.03 | 950.98 | 7.51 | 330.41 | 53.24 |
| Local Money Market Securities | 1,675.88 | 13.58 | 1,736.93 | 13.72 | 61.05 | 3.64 |
| Foreign Money Market Securities | 8.17 | 0.07 | 0.04 | 0.00 | (8.12) | -99.50 |
| Mutual Funds : | 66.67 | 0.54 | 116.34 | 0.92 | 49.67 | 74.49 |
| Open/Clos e-End Funds | 62.09 | 0.50 | 31.97 | 0.25 | (30.13) | -48.52 |
| REITs | 4.58 | 0.04 | 84.37 | 0.67 | 79.79 | 1742.26 |
| Real Es tate Properties | 237.31 | 1.92 | 156.88 | 1.24 | (80.42) | -33.89 |
| Private Equity Fund | 33.94 | 0.28 | 34.10 | 0.27 | 0.16 | 0.47 |
| Infras tructure Fund | 66.88 | 0.54 | 66.50 | 0.53 | (0.38) | -0.56 |
| Cas h & Other As s ets | 76.01 | 0.62 | 74.12 | 0.59 | (1.88) | -2.48 |
| Net Assets Value | 12,339.96 | 100.00 | 12,657.17 | 100.00 | 317.21 | 2.57 |
