Fastened revenue securities make N334.4b

Fastened revenue securities make N334.4b

By Omobola,  Tolu-Kusimo

 

ABOUT 8,469,257 million contributors, together with staff and retirees, have earned N334.46 billion from fastened revenue securities, The Nation has learnt

That is contained within the  Nationwide Pension Fee (PENCOM) 2018 Annual Report.

The report consists of the actions of the fee, pension operators and the  trade within the yr below assessment.

A breakdown of the report showes that the full curiosity and coupon acquired on investments on fastened revenue securities was N334.46 billion within the first half of 2018, increased than the N291.25 billion recorded within the first half of the earlier yr.

PENCOM attributed the rise to an increase within the  worth of investments.

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In the course of the interval below assessment, a complete of N6.31 trillion, out of the N8.63 trillion complete pension fund property, was invested in fastened revenue securities.

The report indicated that investments had been predominantly within the Federal Authorities Securities, FGN Bonds, Treasury Payments and Company Bonds.

This accounted for about 73 % of complete pension fund property, a rise of three % from the 70 % allocation as at December 31, 2017.

In keeping with PENCOM, this was as a result of a number of elements, reminiscent of subdued investor sentiment that characterised the monetary markets main as much as the overall elections in 2019.

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These, the fee acknowledged, prompted pension operators to undertake a ‘flight to security’ technique by investing in FGN Securities pending the result of elections and a clearer view of the path of macro and micro financial coverage.

Additional evaluation of the report confirmed that whereas the full worth of pension fund property, primarily based on unaudited valuation reviews stood at N8.64 trillion as at December 31, 2018. This represented a internet development of N1.12 trillion (15 %) from N7.51 trillion on December 31, 2017.

The fee defined that the expansion resulted primarily from month-to-month inflows of pension contributions, which averaged N50 billion month-to-month, into the Retirement Financial savings Account (RSA) funds and funding incomes.

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Consequently, a dividend totalling N35.32 billion was acquired within the first half of 2018, an quantity increased than receipts of N14.35 billion within the first half of 2017.

Checks, nonetheless, confirmed that the month-to-month pension contributions acquired within the first half of 2018 was N300.24 billion, a discount of N34 billion in comparison with the full contributions acquired within the first half of 2017.

PENCOM defined that the marginally decrease determine was primarily as a result of decrease remittances on FGN treasury funded staff, noting that common month-to-month contributions amounted to N50 billion.

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