Tuesday, February 06, 2018/
09:13 AM / FBNQuest Research
assets under management (AUM) of the Nigerian regulated pension industry
increased by 22.0% y/y in December to N7.52trn (US$24.6bn), and by 1.5% m/m.
They are growing at a decent rate yet, at just 6.7% of GDP for the 12 months
through to Q3 2017, are running well behind many emerging markets.
from the National Bureau of Statistics show that 7.71 million Nigerians were
covered by contributory schemes in December, equivalent to 13% of the
workforce. The target of 30% coverage by 2024 appears elusive without strong
holdings of FGN paper amounted to 69.5% of their AUM in December, compared with
72.2% one year earlier. The beneficiary has been domestic money market
instruments, the share of which gained 2.7% over the 12-month period.
The role of the
PFAs in local debt markets remains pivotal. Their holdings of FGN bonds at
end-December represented 48.0% of the stock of the instruments at
PenCom’s latest data do not point to a
surge of investment in domestic equities. The NSEASI rose by 42.3% in 2017
while AUM in the asset class increased by 34.3% over the same period.
The sharp increase in daily turnover on the
exchange since the start of the year, said anecdotally to be driven in good
measure by local investors, may yet result in a pick-up in the share of
Given the sharp fall in yields on FGN paper
over the past six months, there is a potential tipping point at which
multi-asset class investors shift to domestic equities. We also note the
dilemma for the banks, which will be looking to compensate for the once
substantial revenue stream from holdings of NTBs.
- PENCOM Issues Guidelines on Withdrawals from
- The Elusive Tipping Point in Asset Allocation; AUM
Increases by 23.1% to N7.41trn in November
- Healthy Growth at PFAs, Coverage Still Thin
- PFAs as the Next Investment Destination - A Case
study of FCMB and Legacy Pension
- Nigerian Pension Industry: When “Big” is not enough
- 7.71m Workers Are Registered Under the Pension
Scheme as at Q3 2017 - NBS
- Healthy Growth at the PFAs
- Pension Fund Asset under Management as at 31
December 2016 stood at N6,164.76bn - NBS
- Continuing Revival by the PFAs
- Pension Funds missing out on Equity Market