The National Pension Commission (PenCom) is planning to diversify the investment portfolio of pension assets, and deepen investment channels to reap the benefits of COVID-19.
As the pension regulator, the Commission said it is also reviewing its policies with a view to boosting pension fund investments post-Covid-19.
The Commission said it was making wide range stakeholder engagements with focus on development of Capital Market products, which includes hedging tools that would serve as buffer to safeguard pension assets especially during volatile periods such as the current Covid-19 pandemic.
The Acting Director-General, PenCom, Aisha Dahir-Umar, said the Commission is accelerating ongoing efforts with respect to engaging government agencies, private sector participants, and multilateral development financial organisations in developing infrastructure and housing assets that meet requirements for pension fund investment.
PenCom, she said, was eager to encourage pension fund investments in infrastructure and housing without compromising the major objectives of pension fund investments, which are safety of the assets and maintenance of fair returns on investments.
“There are some opportunities for pension funds, given the long-term investment outlook. One of the likely fallouts of the COVID-19 pandemic is that prices of stocks may drop over the short to medium term. This would provide an opportunity for long-term investments by pension funds.
“Fortunately, the multi-fund investment structure which the Commission introduced in 2019 provides further impetus towards long-term investments. This may be one of the likely fallouts of the COVID-19 pandemic. However, the expected rebound in the years ahead will provide adequate compensation.”