The Net Assets Value (NAV) of the Retirement Savings Account ‘Active’ Fund under the Contributory Pension Scheme (CPS) has recorded a net growth of N181.43 billion (3.39 per cent).
Findings by New Telegraph revealed that the figures under the scheme’s portfolio performance moved from N5.35 trillion as at March 31, 2018 to N5.53 trillion as at June 30, 2018.
In the same vein, the RSA ‘Active’ fund recorded a Weighted Average Rate of Return (WARR) of 8.17 per cent (annualised) as at second quarter 2018, representing a significant drop compared with the 17.84 per cent (annualised) recorded in the previous quarter.
According to the details as revealed by the National Pension Commission (PenCom), a review of Pension Fund Administrators’ (PFAs) ranking by size of assets under their management showed that the top three and five PFAs accounted for more than half of the total RSA assets at 54.20 and 66.89 per cent respectively.
The pension regulator noted that the top 10 PFAs had 87.97 per cent of the total RSA assets under their management while the bottom 10 PFAs accounted for 9.00 per cent of the RSA assets under management at the end of the reporting period.
It further revealed that within the same period under review, “the Net Asset Value of the RSA retiree fund increased by N30.84 billion, from N594.43 billion on March 31, 2018 to N625.27 billion as at June 30, 2018.
“The fund recorded a WARR of 12.79 percent (annualised), which was a reduction in performance when compared with the annualised WARR of 18.19 percent recorded in the first quarter, 2018.
“The yields on fixed income securities, which constituted approximately 99 per cent of the total retiree funds portfolio, declined in the second quarter, 2018.”
According to the commission’s account, the value of pension fund assets held by the Closed Pension Fund Administrators (CPFA) recorded a net increase of N26.76 billion (2.52 per cent), as it increased from N1.06 trillion as at March 31, 2018 to N1.08 trillion as at June 30, 2018.
“The annualised rates of return recorded on the CPFA funds ranged between 7.03 per cent and 15.96 per cent, which was reflective of the actual assets allocation of the individual funds.
“Similarly, the NAV of the Approved Existing Schemes (AES) increased by N125.18 billion (15.22 per cent), from N822.74 billion as at March 31, 2018, to N947.92 billion as at June 30, 2018.
“The net increase in the total portfolio value was mainly attributed to funds injected by the scheme sponsors and interest/coupons from fixed income investments.
“The annualised rates of return recorded on the AES Funds ranged between 7.86 per cent and 16.58 percent in second quarter 2018.”
PenCom observed that generally, the low performance of the pension fund investment in second quarter 2018 compared to the previous quarter was reflective of the operating environment and the Nigerian economic activity during the period under review.
The commission had noted recently that the total pension fund assets, as at August 31, 2018, was N8.33 trillion out of which N5.78 trillion has been invested in Federal Government’s securities.
A breakdown of the investment revealed that FGN bonds got N4.22 trillion; treasury bills, N1.49 trillion; agency bond ( NMRC & FMBN) N10.91 billion; Sukuk bonds, N53.15 billion and green bonds, N6.96 billion.
In the same vein, state government securities gulped N154.43 billion; corporate bonds, N400.45 billion; corporate infrastructure bonds, N7.33 billion; banks, N849.09 billion; commercial papers, N116.76 billion and real estate properties, N226.64 billion.
Other classes of assets include, supra-national bonds, N6.67 billion; open/close end funds, N12.18 billion; mutual funds, N21.29 billion; private equity fund N38.57 billion; infrastructure fund, N16.07 billion; cash & other assets N24.56 billion and Reits, N9.10 billion.