Gains and losses simply defines the route of active funds relating to the returns on investments in Q1 2022 of the monthly pension contributions totalling N461.35bn for active fund I, II, III, V and VI-active captured during the review period.
National Pension Commission (PenCom) First Quarter 2022 Report indicate an increase in active funds compared to the total contributions of N296.17bn recorded in Q4:2021 but it was a tale of growth and diminution for RSA active funds.
The report showed that interests/coupons received on investments in fixed income securities amounted to N228.11bn in Q12022. This indicated a 4.85% decrease compared to the sum of N239.72bn recorded in Q4:2021. However, the report attributed the decrease to lower yields on additional investments/reinvestments in short tenured fixed income securities during the period.
As a reflection of the swing from growth to diminution during the period, dividends on RSA active funds recorded a growth. Dividends of N23.03bn were received in RSA active funds in Q1:2022, “which represented a N17.33bn increase relative to the dividends of N5.70bn received in Q4:2021.”
In the explanation offered for net un-realised gains/(losses) on bonds, First Quarter 2022 Report stated that “Total unrealised gains on bonds in the funds marked-to-market portfolio amounted to N7.11bn during the period under review compared to a depreciation of N2.82bn in Q4;2021. On the other hand, the bond price as measured by the S&P/FMDQ Nigeria Sovereign Bond Price Index decreased to 10.90% in Q1:2022 relative to 11.77% in Q4:2021.”