MEXICO - Mexican pension funds have agreed to invest only in local securities for the rest of the year in a bid to support the country's efforts to reactivate the national economy.
The Asociación Mexicana de Administradoras de Fondos para el Retiro (Amafore) - which represents all funds operating in the country - said the funds would invest all new contributions, revenues and capital gains in Mexican securities.
It also said the fund's investment committees would consider investing in infrastructure projects, when such actions were possible.
In particular, Amafore said funds would target strategic sectors, which could have a high impact on job creation such as residential real estate and all national and local government projects.
In January, according to the Comisión Nacional del Sistema de Ahorro para el Retiro (CONSAR), Mexican pension funds posted average net results of 4.47% for the last three years despite heavy losses in worldwide stock markets during the last year.
The pension watchdog also indicated the value of pension assets managed by pension fund administrators increased by 2.8% from MXP937bn (US$67bn) to MXP964bn (US$69bn) in the first 15 days of 2009.
CONSAR said in a statement this increase in value was the result of recent market developments coupled with the actions taken by the different pension administrators, which allowed to recuperate the losses incurred in 2008.
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