The Nigerian Exchange Limited has said that its partnership with the National Pension Commission (PenCom) will strengthen the participation of Pension Fund Administrators (PFAs) in the equities market through the NGX Pension Broad Index.
Mr. Jude Chiemeka, Acting CEO of Nigerian Exchange Limited who stated this in a press statement said that the NGX Pension Broad Index has exhibited robust performance since its launch last year.
Chiemeka noted that the index stands out for its well-diversified composition, encompassing high-quality stocks across key sectors, including Banking, Insurance, Oil and gas, Consumer Goods, and Industrial Goods.
Collaboration between NGX and PenCom
He noted that the collaboration between NGX and PenCom underscores a shared commitment to fostering transparency, compliance, and growth within the Nigerian capital market.
- “I am pleased with the approval granted by the National Pension Commission for the NGX Pension Broad Index (NGXPENBRD) to serve as the benchmark index for Nigeria’s Pension industry equity investment portfolios,” he said.
Chiemeka noted that the development will further solidify the credibility of the index as a reliable yardstick for evaluating the equity performance of pension industry investments.
He said that the NGX Pension Broad Index is poised to play a pivotal role in guiding investment decisions and enhancing the overall stability of Nigeria’s pension industry.
What you should know
- Nigerian Exchange Limited (NGX) in collaboration with the National Pension Commission (PenCom) launched the NGX Pension Broad Index (NGXPENBRD) on 15 June 2023, which provides a broader benchmark for equities investment by the pension industry.
- The NGX Pension Broad Index is designed to track the performance of equity securities that adhere strictly to the profitability and dividend payment criteria, along with other parameters specifically tailored to the pension industry.
- With an all-encompassing approach, the index imposes no limits or caps on the number of stocks it can include as constituents.
- Currently featuring 84 equities, the NGX Pension Broad Index aligns seamlessly with the provisions of the Pension Reform Act of 2014 and the Amended Regulation on the Investment of Pension Fund Assets proposed by PenCom.
