Pension Fund Administrators Reduce Positions in T-bills, Tar

Pension Fund Administrators Reduce Positions in T-bills, Target Long-dated Securities, Equities Market in 2020...


According to the report, most of the pension fund assets were invested in FGN Securities.
However, its share of the total assets moderated to 65.92% (or N8.11 trillion) in the month under review, from a 70.96% (or N7.40 trillion) recorded in 2020, as pension managers moved funds away from T-bills given the collapse of the yields, particularly in the money market, to record low single-digits amid CBN’s accomodative stance to cushion the effect of COVID-19 pandemic on the economy.
As Pension Fund Administrators (PFAs) shifted focus from investment in T-bills, we saw investment preference drifting towards Local Money Market Securities (LMMS) as total funds invested in this space rose y-o-y by 39.61% to N1.65 trillion in January 2021 (lifting its share of the total assets to 13.40%), from N1.18 trillion in January 2020 (or 11.31% of total assets).

Related Keywords

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