Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home Markets Fixed Income Funds Management

Nigeria’s alternative investment assets grow at a slower rate

Uche Ndimele by Uche Ndimele
November 22, 2018
in Funds Management, Markets
Pension Funds Performance
Share on FacebookShare on TwitterShare on Linkedin

The Nigerian alternative investment space represented by pension and mutual funds saw their assets increase at a slow rate. Analysis of data released by the National Pension Commission, PenCom, indicates that pension fund assets grew by N12.5 billion in September to take total pension assets to N8.35 trillion.

The industry witnessed some sort of asset rebalancing as our analysis indicates that fund managers moved assets away from Banks, Commercial papers and domestic equity securities to FGN Bonds. As a result of the movements, pension fund assets invested in FGN bonds and Treasury bills increased to 70%, from its prior month’s 68%. Currently about N5.8 trillion of the N8.4 trillion of pension assets is invested in FGN bonds and Treasury Bills.

Fund 2 still remains the largest sub-portfolio with the pension asset portfolio universe with 44.29% of the assets in Fund 2, while Fund 3 accommodates 23.67%. The newly introduced funds 1 and 4 have 0.08% and 7.64% respectively. It stands to be seen if the aim of the National pension commission in introducing the multi-fund structure is actually being realized as there seem to be no interest in the two new funds 1 and 4.

RelatedPosts

Central Bank of Nigeria’s July 2022 Treasury Bills auction records 23% oversubscription

At 17.7% inflation rate, investors stake N391 billion in treasury bills at average interest rate of 6%

It is either that the pension fund investors do not yet understand the workings of the multi-fund structure or that they are too risk-averse to take advantage of the new system. If the former is the reason, the PenCom need to be a little more aggressive in their outreach by way of advertorials and investor education programs. It will be recalled that the National Pension Commission, PenCom, recently introduced a radio Programme, “Retirement Mata” which is a weekly 30 minutes pidgin English Programme that airs every Friday on Naija 102.7 FM Lagos at 5.00 pm.

By timely and accurately publishing the performances of the different funds, pension fund managers can help in motivating pension contributors into signing up for the new funds. Unfortunately, most of the pension fund management companies’ website are missing the daily prices of fund 1, making it difficult to measure and publish the performances of the affected funds.

News continues after this ad


Unimpressive Growth in Contributors: One noticeable trend in the growth of pension funds in Nigeria is that, on the average, about 55, 000 new contributors register to join one form of pension savings account or the other. However, that trend seems to be changing. In September, only 28,407 new contributors were registered, according to the Pension Assets Summary report from PenCom.

The report also reveals the effect of the aging process on the profile of pension contributors as about 5,369 people who previously fail into the 30-39 age bracket, were migrated to the 40 -49 age grade. All said and done, the total number of participants in various pension savings plans or accounts in Nigeria now stands at 8.271,948, giving a per capital pension asset value of a little over a million Naira.

Related

Tags: FGN BondsNigerian alternative investmenttreasury bills

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

inq
avatrade
Stanbic bank
Mega Millions
UBN
Hot forex
Access Bank
Bankers Committee
First bank






    Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

    Recent News

    • Sujimoto launches her new luxury condominium with Oikos premium doors
    • Lagos announces partial closure of Third Mainland Bridge
    • Five jobs in Nigeria’s fashion industry that are not design-related

    Follow us on social media:

    Recent News

    Sujimoto launches her new luxury condominium with Oikos premium doors

    Sujimoto launches her new luxury condominium with Oikos premium doors

    August 13, 2022
    Third Mainland Bridge is intact and safe for commuters - FG

    Lagos announces partial closure of Third Mainland Bridge

    August 13, 2022
    • ABOUT US
    • CONTACT US
    • PRODUCTS
    • ANDROID APP
    • iOS APP
    • DISCLAIMER
    • CAREERS
    • PRIVACY POLICY

    © 2022 Nairametrics

    No Result
    View All Result
    • Home
    • Exclusives
      • Financial Analysis
      • Corporate Stories
      • Interviews
      • Investigations
      • Metrics
    • Markets
      • Cryptos
      • Commodities
      • Equities
        • Dividends
        • Stock Market
      • Fixed Income
      • Market Views
      • Securities
    • Industries
      • Company News
      • Consumer Goods
      • Content Partners
      • Corporate deals
      • Corporate Press Releases
      • Energy
      • Entertainment
      • Financial Services
      • Hospitality & Travel
      • Manufacturing
      • Real Estate and Construction
      • Tech News
    • Economy
      • Get Data
      • Macro-Economic News
      • Research Analysis
    • Business News
    • Financial Literacy
      • Career tips
      • Personal Finance
    • Lifestyle
      • Billionaire Watch
      • Profiles
    • Opinions
      • Blurb
      • Op-Eds

    © 2022 Nairametrics

    Social Media Auto Publish Powered By : XYZScripts.com