The Chief Executive Officer, Sigma Pensions, Dave Uduanu in this interview on AriseTV spoke about how pension fund administrators have been maneuvering the low interest environment in order to maintain positive return for customers. He also talked about other industry related issues. Nume Ekeghe presents excerpts:The Covid-19 induced lockdown, the impact on global economies is similar across the world including Nigeria and that has resulted in reduction in aggregate demand.
The PFAs have had to navigate this and as you know, we manage diversified investment portfolios and what is clear and what is important is that the investment portfolio is not concentrated in only one asset class. So, moving from last year where there was higher allocation to fixed income securities, I think PFAs are now moving to more variable income securities.
Have you engaged PenCom to give more room to go offshore investment to get higher returns oversees because it is almost as though PFAs are boxed in and do not have much room? This is precisely what we are doing, there is a regulation and law that prohibits pension funds from investing in offshore markets. That law was revised in 2014 and there is a bit of a wiggle room for us to play with, but it needs Presidential assent and it also needs assess to foreign exchange and you know FX is the hottest commodity today in Nigeria.
The last discussion I think is around infrastructure, I think that the attention and the focus on government is on how to invest in both fiscal and social infrastructure such as roads, power and social infrastructure such as health and education because that is what would impact the population than the economy directly but unfortunately, this is outside the remit of the central bank, it is the fiscal authorities that would have to address this.
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