Daily Trust

Less than 3% pension funds invested in real estate - Data

- By Francis Arinze Iloani

Pension Fund Administra­tors (PFAS) have invested less than 3 per cent of Nigeria’s N7.17 trillion pension assets in real estate properties as at the end of September, 2017.

Data sourced from the National Pension Commission (PenCom) show that PFAs still prefer to invest in federal government bonds and treasury bills at the expense of investment­s in infrastruc­ture that can impact bridge the infrastruc­ture deficit in the country.

Daily Trust analysed the asset classes with pension fund investment­s and found that N3.88 trillion have been invested in

Question:

Our father, ASP Musa T. Yusuf with appointmen­t number No 70416, died on November 19, 2014. He was a registered member of ARM Pen with pin number 1001541314­11. I make this complaint on behalf of his next of kin, the deceased’s first son, Abdulraham­an Yusuf, and the entire family. Since the submission of all the necessary documents in 2015 and 2016, nothing has been given to the children left behind. I want to plead with whoever federal government bonds, translatin­g to 54.09 per cent of the total pension fund assets in the country as at the end of September.

Closely following federal government bonds are treasury bills with N1.27 trillion invested, being 17.73 per cent of the total assets.

Further analysis showed that as at the period under considerat­ion, PFAs have invested N620.60 billion of pension fund assets in domestic ordinary shares, being 8.66 per cent of the total assets and N98.81 billion in foreign ordinary shares being 1.38 per cent of the assets.

Daily Trust also observed that while PFAs are heavily investing in federal government is concerned to please help release his money to enable the NoKs continue their education - Alhassan, location unstated

Answer:

Sir, thanks for bringing this complaint to our attention. We will contact ARM Pen, to find out the details and respond appropriat­ely.

- PenCom

Question:

Can I use funds in my RSA to fund acquisitio­n of property or pay for my mortgage? - Zubair, Abuja

Answer:

Sir, this initiative has already been incorporat­ed into the PRA 2014 and guidelines for its implementa­tion are being developed by the National Pension Commission (PenCom) to ensure contributo­rs can eventually use part of their RSA balance for payment of equity contributi­ons on mortgages for the acquisitio­n of their primary homes. - PenCom

Question:

bonds, they are cautious of investing in sub-national bonds and securities, including the ones issued by agencies.

For instance, during the period, PFAs invested N5.85 billion in bonds issued by the Federal Mortgage Bank of Nigeria (FMBN) and Nigeria Mortgage Refinance Company (NMRC), translatin­g to 0.08 per cent of total assets.

A total of N155.70 billion have been invested in state government securities, being 2.17 per cent of the total assets while N264.71 billion have also been invested in corporate debt securities, being 3.69 per cent of the total assets.

Analysis also showed that investment­s in local money market securities such as I retired on June 20, 2017. When will I get my benefits? unstated

Answer:

Moriki,

Sir, please we would require more informatio­n from you in order to assist you further. Did you work in the private sector or public sector? Were you a state or Federal Government employee?

- PenCom

Question:

banks, commercial papers and foreign money market securities remain low.

Under local money market securities, PFAs have invested N489.58 billion in banks, N55.42 billion in commercial papers and N26.69 billion in foreign money market securities.

Mutual funds, such infrastruc­ture fund and private equity fund, are one of the least assets classes with pension fund investment.

Analysis of the data showed that PFAs have invested N24.06 billion in private equity fund, being 0.34 per cent of the total assets while N5.24 billion are in infrastruc­ture fund, being 0.07 per cent of total asset. location

I am a contributo­r to a pension scheme, 57 years and interested in knowing what percentage of my total contributi­ons I will be entitled to at the point of retirement?

- Anonymous

Answer:

Sir, you may please liaise with your Pension Fund Administra­tor (PFA) who will advise you further. However, the normal practice is that before retirement, you are supposed to be invited by your PFA to discuss the methods by which you intend to withdraw your retirement benefits along with any other relevant modalities involved. - PenCom

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