Nigerian Exchange Limited, PenCom Partner To Fortify Equity Investment For PFAs

In a bid to bolster Pension Fund Administrators’ (PFAs) involvement in the equities market, the Nigerian Exchange Limited (NGX) has unveiled its collaborative initiative with the National Pension Commission (PenCom) to solidify the NGX Pension Broad Index (NGXPENBRD).

Mr. Jude Chiemeka, the Acting CEO of NGX, expressed his enthusiasm, stating, “The approval granted by the National Pension Commission for the NGX Pension Broad Index is a pivotal step towards enhancing the credibility and reliability of the index in evaluating equity performance.”

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Emphasizing the index’s diversified composition across crucial sectors like Banking, Insurance, Oil and Gas, Consumer Goods, and Industrial Goods, Chiemeka highlighted its robust performance since its launch last year.

“The NGX Pension Broad Index is set to guide investment decisions and ensure stability within Nigeria’s pension industry,” he affirmed.

The NGXPENBRD, initiated on June 15, 2023, incorporates 84 equities and aligns seamlessly with both the Pension Reform Act of 2014 and PenCom’s Amended Regulation on the Investment of Pension Fund Assets.

This index, designed to adhere to profitability, dividend payment criteria, and industry-specific parameters, is poised to reshape the landscape of pension equity investments in Nigeria.