PenCom Evaluates Pension Fund Investment In FG Securities

THE National Pension Commission (PenCom) says it is revising the 70% profile of Pension Fund Investment portfolio in Federal Government of Nigeria(FGN) Securities.

This was disclosed in Lagos by PenCom’s Head of Research and Strategy Management Department, Ibrahim Kangiwa.

Kangiwa said the FGN Securities got investment of about 70% representing over N8tn by May this year.

He said, “The commission is determined to revise the 70% uptake by supporting an investment climate that mitigates an obligor risks and hedges pension fund assets against inflation.

“The focus is to have a more measurable impact on the economy through diversified and increased investments of pension funds in infrastructure, real estate and other alternative assets.”

Kangiwa said pension fund investments remained highly in favour of FGN Securities because of insufficiency of infrastructural and alternative asset products in the financial markets.

While Kangiwa talked on the commission’s efforts to increase consumption of pension funds investments, he stated that engagement with relevant stakeholders to promote safe investment in infrastructure development was ongoing.

He stated that there were collaborations with some government agencies and the organised private sector for viable Public-Private Partnership in infrastructure for pension fund investment.

He added that there was the establishment of the Non-Interest Fund (Fund VI) among the Fund types to be managed by PFAs, adding that this required the Pension Fund Administrators (PFAs) to invest Fund VI assets in ethical and non-interest compliant instruments in line with Islamic Financial Jurisprudence.