In a joint effort to provide a comprehensive benchmark for equities investment in the pension industry, the Nigerian Exchange Limited (NGX) and the National Pension Commission (PenCom) collaborated to introduce the NGX Pension Broad Index (NGXPENBRD) on June 15, 2023.
The NGXPENBRD is meticulously designed to monitor the performance of equity securities that strictly adhere to profitability and dividend payment criteria, aligning with parameters tailored to the pension industry.
Unlike traditional indices, the NGX Pension Broad Index imposes no limits or caps on the number of stocks it can include as constituents, offering a more inclusive and diversified approach to benchmarking.
Currently featuring 84 equities, the NGX Pension Broad Index is in harmony with the provisions of the Pension Reform Act of 2014 and the Amended Regulation on the Investment of Pension Fund Assets proposed by PenCom.
Since its launch last year, the NGX Pension Broad Index has demonstrated robust performance, becoming a standout index with its well-diversified composition. It encompasses high-quality stocks across key sectors, including Banking, Insurance, Oil & Gas, Consumer Goods, and Industrial Goods.
Mr. Jude Chiemeka, Acting CEO of Nigerian Exchange Limited, expressed gratitude for the insightful partnership with PenCom, highlighting the collaboration’s commitment to transparency, compliance, and growth within the Nigerian capital market.
“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. This further solidifies the credibility of the index as a reliable yardstick for evaluating the equity performance of pension industry investments,” said Mr. Chiemeka.
The NGX Pension Broad Index is expected to play a crucial role in guiding investment decisions and enhancing the overall stability of Nigeria’s pension industry, providing a valuable tool for evaluating equity performance in pension industry investments.
