The nation’s pension fund assets is set to gain N1 trillion in 2021 even as225,000freshworkers joinednew contributory pension scheme with- in the first nine months of last year, LEADERSHIP reports.
While available data sourced from the pension industry regulator, the National Pension Commission (Pen-Com) shows that the pension assets grew by N702 billion between January and September, 2021, market observers expect the fund to have grown by a minimum of additional N300 billion between October and December 2021, judging from trend of at least a N100 billion monthly gain from June to September, 2021.
To this end, cumulatively, they expect the fund to have grown by N1 trillion by the time PenCom releases the data for October, November and De- cember, 2021.
Available data sourced by LEADERSHIP shows that, the fund opened last year at N12.29 trillion in January, but dropped to N12.24 trillion in February, following the drop in yield in the bonds market where the pension fund administrators have about 60 per cent of the pension fund invested in.
In March 2021, the fund rose to N12.33 trillion, gaining N92billion while it gained a further N58 billion in April to stay at N12.39 trillion even as it soared by N95 billion in May, 2021 to put the pension fund assets at N12.49 trillion.
By June, the fund had grown to N12.65 trillion, amassing N165 bil- lion in the process even as it recorded N123 billion growth in July to stay at N12.78trillion.
The pension fund assets rose to N12.90 trillion in August, having gained by N120 billion, while it pulled N101 billion gains in September, 2021 to stay at N13 trillion.
Although, the pension industry regulator is yet to release the figure for October, November and December, 2021, LEADERSHIP findings revealed that the last three months of the year will follow the pattern of growth of the fund from June to September, 2021 which grew by a minimum of N101 billion each month, a development that was corroborated by market observers.
To this end, the three months are expected to record a minimum of N300 billion, in addition to N702 billion gain between January and September, 2021 to record a cumulative gain of N1.002trillion.
Investment income, according to LEADERSHIP investigation, was instrumental to the continuous growth in pension fund, despite the fact that governments at majorly, State level are not paying the monthly pension contributions of their workers as and when due.
Similarly, the huge increase, according to findings, was attributed to new pension contributions received, interest from fixed income securities and net realised on equities and mutual fund investments.
Meanwhile, 225, 000 fresh workers from both public and private sectors of the nation’s economy joined new pension scheme known as Contributory Pension Scheme(CPS) between January and September, 2021.
This is after their employers registered them under the new pension scheme. This translates to about 2.5 percentage growth when considered with a total of 9.46 million workers that have so far joined the scheme between 2004 when CPS commenced till September 2021.