In what could be seen as counterintuitive, Nigerian pension fund managers have offloaded their investments in foreign money market securities.
This is a revelation gleaned from analysis of the pension asset reports so far released this year, (2021), by the National Pension Commission, PenCom.
According to the said reports, the total pension assets allocated to foreign money market securities stood at N18.69 billion as of December 31, 2020 but that allocation has been trimmed down to N41 million as of April 30, 2021. This represents a decrease of 99.78%.
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The reason behind this asset reallocation away from foreign money market securities may not be unconnected with the fact that money market instruments in the Western world are attracting near negative interest rates.
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Be that as it may, one would have expected that given the current exchange rate of the Naira in relation to the major currencies of the world, that what is lost in interest rate could be made up for through exchange rate differences. This assertion assumes that the foreign money markets are dollar-denominated.
It is believed and hoped that the pension fund managers’ decision to divest from foreign money market instruments is predicated on analysis of foreign risks inherent in those instruments and not solely on the near negative interest rates.
Eze chimezie Stanley 0122070876 union bank
Am the owner of the fund change it and transfer it into my account now
All my money should be changed to naira and send to my account Imediatly Funds arived here name of account.Eze chimezie Stanley
0122070876union bank of nigeria