Experts are advising the Pensions Commission (PenCom) to increase its participation in the stock market to boost liquidity.
The advice was based on the 41% enormous returns recorded on the stock market.
Their argument is premised on the enormous returns PenCom has generated from the NGX All-Share Index over the past four years (2020, 50%; 2021; 6%; 2022, 20% and 2023: 41%).
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They urged PFAs to increase their patronage in the stock market to boost the value of listed equities.
Analysts argued that pension funds’ overall allocation to equities has risen to (₦1.43 trillion as of October 2023) from ₦1.04 trillion in the first quarter (Q1), of 2023.
They said almost all the increase could be attributed to the rise in the stock market rather than purchases.
According to Agusto & Co. the PenComs assets under management (AuM) as of May 31, 2023, stand at ₦16.1 trillion
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This represents a 13.5% increase from the corresponding period in the prior year.
Investors have described PFA’s poor participation as a major factor responsible for liquidity challenges.
