Nigerian Pension Fund Administrators (PFAs) increased investment in the Nigerian stock market to N1 trillion in May, up from the N999 billion they closed April with. The investment value rose by N8.73 billion month-on-month.
The PFAs have invested N84.69 billion in the capital market year-to-date. This is an increment of 9.25% when compared to the N915.31 billion the pension managers held in the Nigerian bourse early January.
According to the pension funds industry unaudited report for May 2022, investment in the stock market grew alongside the total asset under management, which hit N14.19 trillion, its highest level.
This was thanks to the N133.76 billion recorded in May, not leaving out the year-to-date gain of N768.86 billion, as the pension market added 25,025 new RSA registrations, increasing the total industry figure to 9.67 million registrations last month.
Aside from the local bourse contributing to the growth of the value of investment made by the pension managers, corporate debt securities also lifted the total funds, although the growth was slowed by a dip in fixed deposit/bank acceptance and commercial paper issuances, and other market securities.
Investment in corporate debt securities, which consists of green bonds, infrastructure bonds and corporate bonds, rose to N1.19 trillion in May, that’s an increase of 2.1%, while investment in market securities dropped -2.98%, when the N2.25 trillion and N2.19 trillion recorded in April and May respectively are compared.
Meanwhile, the pension industry reported N8.81 trillion, out of the total assets under management, as investment in government securities, which rose by N245.45 billion in May.