The Nigerian Exchange Limited (NGX) and the National Pension Commission (PenCom) collaborated to introduce the NGX Pension Board Index (NGXPENBRD), aimed at transforming the equities investment landscape for pension funds. Launched on June 15, 2023, the new index addresses the limitations of existing benchmarks, providing a more inclusive and representative measure of the investment universe of pension funds
Traditionally, pension funds relied on the NGX All Share Index (ASI) and NGX Pension Index (PI) for assessing the performance of their equity portfolios. However, both indices had their limitations. The ASI encompassed all stocks listed on the Nigerian Stock Exchange, including those ineligible for pension fund investments. On the other hand, the PI comprised only 40 stocks, leading to a narrow representation dominated by high-value stocks. Recognising these constraints, PenCom and NGX sought to develop a more comprehensive benchmark.
