The Nigerian Exchange Limited (NGX) has joined forces with the National Pension Commission (PenCom) to enhance the participation of Pension Fund Administrators (PFAs) in the equities market through the NGX Pension Broad Index. Jude Chiemeka, the Acting CEO of Nigerian Exchange Limited, expressed optimism about the collaboration, emphasizing that the NGX Pension Broad Index has demonstrated robust performance since its launch last year.
The NGX Pension Broad Index is distinguished by its well-diversified composition. It encompasses high-quality stocks across vital sectors such as Banking, Insurance, Oil and Gas, Consumer Goods, and Industrial Goods. Chiemeka underscored the shared commitment between NGX and PenCom to foster transparency, compliance, and growth in 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,” remarked Chiemeka. He highlighted that this development will enhance the credibility of the index as a reliable measure for evaluating the equity performance of pension industry investments.
The NGX Pension Broad Index is poised to play a pivotal role in guiding investment decisions and bolstering the overall stability of Nigeria’s pension industry. Launched on June 15, 2023, in collaboration with the National Pension Commission, the NGXPENBRD provides a broader benchmark for equities investment by the pension industry.
Specifically designed to track the performance of equity securities adhering strictly to profitability and dividend payment criteria, 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. This collaborative effort is expected to strengthen the credibility and influence of the NGX Pension Broad Index in shaping investment strategies within the pension industry.
