Library / B 889 Federal Republic of Nigeria Official Gazette No. 189
B 889 Federal Republic of Nigeria Official Gazette No. 189

Page 21 of 29
B 909
(3)  The Board of Trustees shall appoint another Fund Manager not later
than 30 days after the removal or resignation of a fund manager and notify the
Authority of such appointment through the licensee.
PART VI — INVESTMENT OF THE RESERVE FUND
AND REPORTING OBLIGATIONS
35.—(1)
Money standing to the credit of the reserve fund may be
invested by the Fund Manager —
(a)  on the approval of the Board of Trustees; and
(b)  with the objectives of safety and maintenance of fair returns on
amounts invested.
(2)  The Fund Manager shall only invest in allowable instruments
prescribed under the relevant Regulation on Investment of Pension Fund Assets
subject to the quality ratings set out in that Regulation.
(3)  The funds in the reserve fund shall not be invested in unlisted securities
by the Fund Manager, where the investment —
(a)  is in early or start up stage of the target company, or may qualify as
seed capital;
(b)  shall cause the value of the fund so invested in the securities of
the unlisted company to exceed 5% of the net asset value of the reserve
fund; or
(c)  is in a company where the board, management, or affiliate of the Fund
Manager or licensee jointly or severally have more than 5% equity stake.
(4)  Fund Managers shall not invest funds in the reserve fund in any
instrument that is subject to any type of prohibition or limitation on sale or
purchase of such investment except  close-ended funds.
(5)  Fund Managers shall maintain a diversified portfolio of allowable
instruments and avoid undue concentration in one of the allowable instruments.
(6)  The proportion of reserve fund invested in a particular allowable
instrument shall not exceed 5% of the amount in the reserve fund.
(7)  Fund Managers shall not apply funds in the reserve fund by way of
loans or credit or as collateral for any loan taken by any person including the
licensee.
(8)  Interests derived from any investment shall be dealt with as directed
by the Board of Trustees subject to section 246 of the Act.
(9)  In accordance with section 256 of the Act, interests, dividends,
profits, investments and other incomes accruable to the reserve fund shall be
tax exempt.
Criteria for
investment
in securities