The Securities and Exchange Commission on Wednesday advocated an increase in the investment of pension fund assets in equities. It said the current investment of pension funds in equities, which stands at about nine per cent of the total pension assets, was one of the lowest in the world.
The Director-General, SEC, Mr. Mounir Gwarzo, stated these at a conference on pension fund investment in equities organised by BusinesssDay Media.
He said at 9.4 per cent, Nigeria had the lowest allocation to equities by pension funds among peer markets as against South Africa 73 per cent; Botswana, 70 per cent; Namibia, 66 per cent; and Swaziland, 58 per cent.
Gwarzo noted that even if the pension fund administrators were to invest up to the 30 per cent allowable limit of the pension funds in equities as approved by the National Pension Commission, it was still below the global benchmark of 42 per cent.
The SEC DG said, “Virtually everyone agrees that all funds mobilised under the Contributory Pension Scheme shall be invested by the PFAs with the objectives of safety and maintenance of fair returns on the amount invested.