Afores: Cross-border funds are the logical alternative to cumbersome mandate process

"We have emphasized repeatedly their advantages and [cross-border funds] are a proven option; Peru, Chile and Colombia use them and capitalize on them," said Carlos Noriega, president of the local Afore trade group (Amafore).

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Afores anxious to participate in new alternatives vehicles proposed by Executive branch

Afores are eagerly awaiting the launch of the Fibra E and CerPIs, the two new structured instruments proposed by the Mexican President Enrique Peña Nieto, said Carlos Noriega, CEO of the Mexican Association of Retirement Fund Managers.

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Pension association suggests allowing smaller Afores to invest in cross-border funds

"This possibility would an interesting revolution for active managers, especially for smaller Afores, which find the cost of mandates beyond their means," said Carlos Noriega, president of Amafore.

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Consar, Afores and global managers discuss speeding up the mandate process

Consar President Carlos Ramírez has met recently with the teams of Afore Banamex and two global managers with which the pension manager has funded mandates, Schroders and BlackRock.

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Ramirez warns of dire consequences to pension system if reforms are delayed

"The more we delay the fundamental reforms required by this system, the possibility of accumulating sufficient resources for the new generation of Mexicans will be reduced," warned Carlos Ramírez, president of the Consar, at a recent gathering of industry professionals.

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Experts agree: Mexican pension system in need of urgent reform

Experts gathered at forum hosted by Principal Investments agreed that the first generations of Mexicans who retire with their Afore accounts will not receive a decent pension. The average OECD replacement rate is 54% (pension as a percent of salary) compared with just 28.5% in Mexico.

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Amafore: Afores will be managing USD 300 billion in 2020

With projections based on current conditions of the Retirement Savings System - i.e. a 6.5% compulsory contribution and 49.6% investment placed in government debt - the Afores are expected to reach net assets of MXP 4.3 trillion (USD 295 billion) by the end of 2020.

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Amafore: Pension-fund investment regime not a legislative matter

Carlos Noriega Curtis, president of the Mexican pension fund association, the Amafore, is proposing that the Retirement System Law (SAR) be amended to delegate to the Consar all decisions regarding the Afores' investment regime.

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Private pension plans stalled by 2013 tax reform

Data from the Consar indicates the total number of corporate pension plans fell by 2.4% in 2014, compared to average annual growth of 10% per annum, as tax incentives for these vehicles were weakened.

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Mexican government proposal would tie part of management fee to performance

The proposal, which would reward higher-performing Afores with larger fees and punish those poorer performers, was immediately panned by the local pension industry association, the Amafore.

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