PFAs invest N155.44bn pension funds in real estate

Pension According to the National Pension Commission, fund managers invested N155.44 billion of the total funds of the defined contribution pension system in real estate at the end of September 2021.

The PenCom data on the monthly pension fund portfolio showed that the total managed funds were N 13 trillion in September.

Other investment portfolios in which the funds were invested included FGN securities; domestic and foreign common stocks; and corporate bonds, which include corporate bonds, corporate infrastructure bonds, green corporate bonds, and supranational bonds.

Funds were also invested in local money market paper, including bank placements, commercial paper and foreign money market paper.

The rest of the PFAs invested in mutual funds consisting of open / closed funds, private equity funds, infrastructure funds, cash and other assets.

In his speech on real estate investing, CFL Group’s Group Managing Director / Chief Executive Officer, Mr. Lai Omotola, highlighted the need to invest in real estate.

“Construction is still the fastest way to get out of the recession as the economy has a large value chain to create jobs,” he said.

According to a report from Augusto & Co, a pan-African rating agency, the net worth of the Nigerian annuity industry is expected to hit the N20tn mark by 2023.

Their report for the Insurance Industry 2021 states that the growth in assets under management in the annuity industry has been largely driven by investment returns and additional contributions, to a lesser extent.

The report said the industry’s annual contributions had averaged N699 billion over the past five years, while withdrawals averaged around N341 billion, representing a net annual contribution of N347 billion, or 26.6 percent of AuM -The industry’s growth over the reporting period.

The remaining 73.4 percent of the average growth can be attributed to the investment returns achieved with the portfolios.

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