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PENCOM Investment Regulations
To ensure the integrity of pension fund assets, PenCom has set a list of pre-approved investment vehicles and minimum qualifications for such instruments.
Under the PenCom Investment Regulations, the following categories and quality of investment instruments are allowable for investing pension assets in.
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PENCOM Allowable instruments
- Open/Close-ended/Hybrid Investment Funds,
- Real Estate Investments through MBS (Mortgage Backed Security) and REITs (Real Estate Investment Trust) registered with SEC (Security & Exchange Commission)
- Supranational Bonds issued by MDFOs (Multilateral Development Finance Organizations) of which Nigeria is a member,
- Private Equity and Infrastructure funds registered with SEC (Security & Exchange Commission)
- Money market instruments of banks and discounted houses as well as commercial papers
PENCOM Allowable instruments
- Open/Close-ended/Hybrid Investment Funds,
- Real Estate Investments through MBS (Mortgage Backed Security) and REITs (Real Estate Investment Trust) registered with SEC (Security & Exchange Commission)
- Supranational Bonds issued by MDFOs (Multilateral Development Finance Organizations) of which Nigeria is a member,
- Private Equity and Infrastructure funds registered with SEC (Security & Exchange Commission)
- Money market instruments of banks and discounted houses as well as commercial papers
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PENCOM Quality of investments
- Bonds and other allowable debt securities shall have a minimum credit rating of “A” by at least two recognized rating companies,
- Any bank shall have a minimum credit rating of “BBB” by at least two recognized rating companies,
- All ratings shall be undertaken by rating companies registered or recognized by SEC (Security & Exchange Commission)
