Data from the National Pension Commission (PenCom) reveals Nigeria’s pension fund assets rose to N17.927 trillion for the period ended 30th November 2023.
This represents an increase of about 1.52% when compared to the N17.658 trillion that was reported as net asset value in September 2023.
This was contained in the commissions’ monthly report for November 2023 released today.
Details of the report
Portfolio Allocation
According to the report, the total pension fund net asset value rose to N17.927 trillion in November compared to N17.658 trillion reported a month earlier.
- A closer look at the data reveals investment in FGN securities continues to dominate portfolio allocation with about N11.749 trillion or 65.67% of total net asset value (NAV).
- Pension Funds also allocated N1.899 trillion to Corporate Debt Securities and N1.549 trillion to Money Market Instruments.
- Investments in ordinary shares of local companies rose by 3.99% to N1.487 trillion from N N1.430 trillion in October.
Fund Allocation
Fund II, which is the default RSA Fund under the Multi-Fund Structure, maintained the largest share of the Active RSA Funds allocation with N7.689 trillion or 43% of the total fund NAV.
- Fund III also rose by 1.01% from N4.831 trillion to N4.880 trillion maintaining its second position for fund allocation.
- Meanwhile, RSA membership for November 2023 rose by 0.26% to 10,167,705 from 10, 140,929 members in October 2023.
Optics
Pension Funds, Net Asset Values have risen from N14.9 trillion in December 2022 to N17.9 trillion or a whopping N3 trillion representing an 20.13% increase.
- For context, between 2021 and 2022, Pension Fund Assets rose by just N1.57 trillion from N13.42 trillion to N14.99 trillion
- The rise is likely linked to a combination of a surge in pension fund contributions and a rise in portfolio values.
- For example, FGN Securities has seen its Net Asset Values rise from N9.64 trillion in 2022 to N11.51 trillion as of November 2023.