National Pension Commission Activities Update
The National Pension Commission presented recent developments at the Capital Market Committee Meeting in Abuja, Nigeria in March 2018. The update includes pension statistics, adoption of International Financial Reporting Standards by pension funds, implementation of RSA Multi-Fund Structure, and a summary of pension fund assets as of February 2018.
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Presentation Transcript
An update of activities of the National Pension Commission A Presentation to the: Capital Market Committee Meeting NATIONAL PENSION COMMISSION ABUJA, NIGERIA MARCH, 2018
2 Outline 1. Recent developments from last CMC Meeting 2. Pension Statistics as at 28 February 2018
3 Recent developments from last CMC Meeting 2017 Recap: The Net Assets Value (NAV) of total industry pension fund assets was N7.61Trillion as at 31 December, 2017. This represented a net growth of N1.35Trillion (22%), when compared with the value of N6.16Trillion as at 31 December, 2016. The net increase in the value of assets was mainly due to new pension contributions, market valuation of equity investments and interest/coupons on fixed income investments. The Weighted Average Rate of Return (WARR) on the RSA Active Fund for the year 2017 was 16.42%, while the return on the RSA Retiree Fund was 15.39%. The performance of RSA Funds was hugely impacted by the performance of the NSE-ASI in 2017, and the sustained impressive interest/yields on fixed income investments for the better part of the year.
4 Recent developments from last CMC Meeting Adoption of International Financial Reporting Standards (IFRS) by Pension Funds: The Commission in collaboration with the Financial Reporting Council of Nigeria on 4 August 2017, issued a joint statement on the adoption of International Financial Reporting Standards (IFRS) by Pension Funds. Accordingly, all Pension Funds are expected to issue financial statements prepared in accordance with IFRS for the year ended 31 December 2017. A meeting had been held in January 2018 with Pension Fund and their External Auditors, to discuss the implementation modalities of IFRS, as pension funds are to stratify their bond portfolios to synchronize with the age profile of their members
5 Recent developments from last CMC Meeting Implementation of RSA Multi-Fund Structure: The implementation of the RSA Multi-Fund Structure would commence from Q3: 2018 (July 2018). Public enlightenment/sensitization by the pension industry would commence shortly.
6 Summary of Pension Fund Assets as at 28 Feb. 2018 Variance (Between 28-Feb-2018 and 31-Dec-2017) Total As at 28-Feb-2018 As at 31-Dec-2017 Amount N'Billion 734.00 5,506.05 70.64% 5,292.38 68.94% 213.67 155.45 1.99% 152.40 311.16 3.99% 268.12 632.88 8.12% 681.35 18.82 0.24% 24.99 7.22 0.09% 11.43 33.76 0.43% 25.44 8.04 0.10% 5.72 210.84 2.71% 205.33 111.24 1.43% 140.00 105.65 1.36% 104.61 5.59 0.07% 35.39 64.92 0.83% 35.10 7,794.40 100% 7,514.26 Weight % 9.42% 672.00 Amount N'Billion Weight % 8.84% 62.00 Amount N'Billion Weight % S/N Asset Class 9% 4% 2% 16% -7% -25% -37% 33% 41% 3% -21% 1% -84% 85% 4% 1 Quoted Ordinary Shares 2 FGN Securities 4 State Govt. Securities 5 Corporate Debt Instruments 6 Money Market Instruments 7 Mutual Fund 8 Supranational Bonds 9 Private Equity Funds 10 Infrastructure Funds 11 Real Estate Properties* 12 Foreign Investments* i. Foreign Equities ii. Foreign Money Market 13 Cash & other Assets Net Asset Value 2.00% 3.53% 43.04 8.96% (48.47) 0.33% (6.17) 0.15% (4.21) 0.33% 8.32 0.08% 2.32 2.70% 5.51 1.84% (28.76) 1.38% 1.04 0.47% (29.80) 0.46% 29.82 100% 3.05 280.14
