The Nigerian Exchange Limited has announced that its collaboration with the National Pension Commission will increase the involvement of Pension Fund Administrators in the equity market via the NGX Pension Broad Index.
The Acting CEO of Nigerian Exchange Limited, Mr. Jude Chiemeka, noted in a news release that the NGX Pension Broad Index has performed well since its inception last year.
Chiemeka highlighted the index’s well-diversified composition, which includes high-quality firms from major sectors such as banking, insurance, oil and gas, consumer goods, and industrial goods.
He stated that the collaboration of NGX and PenCom demonstrates a shared commitment to fostering transparency, compliance, and growth within the Nigerian capital market.
He stated that the partnership between NGX and PenCom demonstrates a common commitment to encouraging openness, 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 to serve as the benchmark index for Nigeria’s Pension industry equity investment portfolios,” said the Minister of Finance.
According to Chiemeka, the development will strengthen the index’s reputation as a trustworthy benchmark for analyzing the equity performance of pension industry assets.
He believes that the NGX Pension Broad Index will be critical in guiding investment decisions and improving the overall stability of Nigeria’s pension industry.
The NGX Pension Broad Index, which offers a wider benchmark for equities investment by the pension industry, was introduced on June 15, 2023 by Nigerian Exchange Limited and the National Pension Commission.
The NGX Pension Broad Index is intended to track the performance of equity securities that rigorously conform to the profitability and dividend payment standards, as well as additional metrics suited specifically to the pension business.
With an all-inclusive methodology, the index places no restrictions or ceilings on the number of stocks that can be included as components.
The NGX Pension Broad Index, which currently includes 84 shares, is perfectly aligned with the provisions of the Pension Reform Act of 2014 and the Amended Regulation on the Investment of Pension Fund Assets suggested by PenCom.
