PFAs Seeking New Investment Outlets, Push Investments In Banks To N2.24trn

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The pension fund assets investment in bank placements has risen to N2.24 trillion, LEADERSHIP can now reveal. Bank placement is a short term investment

LEADERSHIP investigation shows that, this was partly responsible for the growth of the pension assets to N13 trillion as at October, 2021 as investment income, of which bank placements contributed the highest, was the main driver of the assets.According to a data sourced by LEADERSHIP from the National Pension Commission, as at January, 2021, a sum of N1.48trillion of which Fund II contributed N604.1 billion, has been invested in bank placements, while it went up to N1.

Odutola, who is also the managing director/CEO of the ARM Pension, noted that, apart from attractive interest rate that comes with bank placements, it is also short-term which gives room for reinvestment and make more income within a year. Stating that the significant growth in pension assets last year was majorly from investment returns, she added that, interest from bank placements contributed majorly to the investment returns.

“The public should be assured that all pension assets are traded in the name of the Pension Fund Administrator and Pension Fund Custodian , in other words, the investments are made in the PFA/PFC’s name. The returns are not paramount to the National Pension Commission or operators, as much as the safety of the funds,” she said.Similarly, the chief executive officer of PenOp, Mr.

 

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