NGX, PenCom launch Pension Broad Index

Nigerian Exchange Limited (NGX), in collaboration with the National Pension Commission (PenCom) on Monday announced the launch of the NGX Pension Broad Index (NGXPENBRD).

The NGX Pension Broad Index tracks the performance of equity securities that meet the profitability and dividend payment criteria, with no limit or cap on the number of stocks that can be included.

The index, which currently includes 88 equities, complies with the Pension Reform Act of 2014 and the Amended Regulation on the Investment of Pension Fund Assets proposed by PenCom.

Speaking on this development, Jude Chiemeka, divisional head, Capital Markets, NGX said, “I commend PenCom for working with us to create the NGX Pension Broad Index, which provides a broader benchmark for equities investment by the pension industry. NGX is very appreciative of PenCom’s demonstration of insightful partnership throughout this process in the interest of the market. With the NGX Pension Broad Index, PFAs now have access to more quality stocks beyond the existing NGX Pension Index, which has its universe capped at 40 stocks. Consequently, the NGX Pension Broad Index would replace the NGX Pension index as the benchmark for the Pension industry in the near future”.

The constitute companies of the NGX Premium Broad Index must have an operating track record of having made taxable profits for at least three out of the five years preceding the investment; and must have paid dividends or issued bonuses at least one out of the five years. In addition, companies to be included must have a Free Float Factor of at least 5percent in line with the Exchange’s free float rules.

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By Iheanyi Nwachukwu • July 25, 2023

Iheanyi Nwachukwu

Iheanyi Nwachukwu, is a creative content writer with almost two decades journalism experience writing on banking, finance, capital markets, and tax. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA). Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.