By Rosemary Iwunze
Closed Pension Fund Administrators, CPFAs, are raising their investments in foreign securities at the backdrop of a sustained fluctuation in exchange rate.
The CPFAs increased their investments in foreign money market instruments by 12.4 per cent, Month-on-Month, MoM, to N94.1 billion in August 2025 from N83.7 billion in July 2025.
The report of the National Pension Commission, PenCom, on pension funds industry portfolio for the period ended 31 August 2025 released yesterday, also indicated that the CPFAs’ investments in foreign equities increased by 2.2 per cent to N277.4 billion in August from N271.3 billion recorded in July.
It will be recalled that PenCom recently released a guideline for Pension Fund Administrators, PFAs, allowing them to invest part of the pension funds in foreign currency-denominated instruments. This was initially reserved for CPFAs.
A Closed PFA only manages Retirement Savings Account, RSA, for its employees or employees of its parent company if it is a subsidiary. The CPFAs that invest in foreign securities pay their employees in foreign currencies.
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