MEXICO - The country's state pension fund (afores) posted average returns of 5.5% for the month of January, according to data released by the Comisión Nacional del Sistema de Ahorro para el Retiro (CONSAR).
The assets under management of the 15 afores rose to MXN1.16trn (US$90bn), from MXN1.12trn.
The system's portfolios are heavily skewed towards domestic holdings, due to national regulations imposing limits to investments in foreign assets. In addition, in March 2009 the afores decided to invest all new contributions in local assets, in order to boost the local economy. (Global Pensions, March 19, 2009)
At the end of January, 66.55% of the funds' assets were invested in Mexican government bonds, 15.42% in domestic corporate bonds, 9.01% in domestic equities and only 4.15% in international bonds and 3.7% in international equities. A further 1.18% was allocated to structured products.
The initial agreement to invest all new contributions in domestic assets was intended to last only until the end of 2009. It was then extended until May 2010.
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