As first quarter 2013 ends, which was earlier slated as take-off date for multi-fund investment options, retires and other stakeholders are looking up to the National Pension Commission (PenCom) to come up with amended investment regulation for effective take-off of the new Multi-fund Structure for Retirement Savings Accounts Funds.
This is coming in response to the dynamics of the financial and regulatory environment, which PenCom had noted will be part of its revised guideline.
According to PenCom, the major highlights in revised guideline includes the introduction of Exchange Traded Funds (ETFs) as allowable instruments; and incorporation of Guidelines on Global Depository Receipts/Notes (GDRs/GDNs) and Eurobonds, amongst others.
The first quarter time frame for introduction of the multi-fund the Commission had noted, was to provide ample time for the commencement of a public education/sensitisation campaign on the Multi-Fund Structure by the Commission as well as for licensed Pension Fund Operators to be operationally ready to implement same.
Rencap analysts had listed other highlights of the revised guideline to include: The PFAs shall maintain RSA Active’ and ‘Retiree’ Funds, as provided in this Regulation, to govern the investment of pension fund assets until effective implementation of the Multi-Fund Structure; the Commission shall provide the necessary guidelines on the investment of Pension Fund Assets outside the territory of the Federal Republic of Nigeria as and when the need arises; a PFA shall not engage in borrowing or lending of pension fund assets; and PFAs can now invest in Global Depositary Receipts/Notes (GDRs/Ns) and Eurobonds issued by listed Nigerian companies, as certified and approved by SEC.
On investment limits Equity (plus GDR) limit on RSA Active Fund is 25 percent and 10 percent on RSA Retiree Funds; not more than 10 percent of the total pension assets under management shall be invested in all instruments/securities (equity, money market and debt) issued by a corporate entity and PFAs shall ensure that no more than 45 percent of pension assets under its management are directly or indirectly invested in any one sector of the Nigerian economy as classified by the Nigerian Stock Exchange (NSE).
