
Mexico's Afores recovering from 2018 market losses

The head of Mexico's pension fund regulator (Consar), Abraham Vela, said the investment losses recorded by the country's pension fund managers (Afores) at the end of 2018 have already begun to reverse.
In an earlier statement, Consar said assets under management at the Afores declined by 9.55bn pesos (US$498mn) last year, or 0.27% of total AUM - largely the result of volatility in global financial markets in the fourth quarter.
Vela, in a Wednesday telephone interview with local media group Televisa's morning program, countered claims that the losses were also due to impacts from the cancellation of Mexico City's international airport in late October, saying that the operator for the project had assured that the funds invested in the airport were safe.
"At the country level there was an increase in the perception of risk by domestic and foreign investors and this increase in the perception of risk was reflected in disabilities in many instruments, not necessarily those in which the Afores have their resources invested," said the official.
"It is important to point out that these losses were recorded by many financial intermediaries. Obviously the Afores are under the magnifying glass, because they are the savings of the workers, but the banks, trading houses and any other type of financial intermediaries also suffered handicaps," Vela added.
The Afores' recovery began in December when capital gains of 28bn pesos were registered, while in January and February there have been gains of little more than 100bn pesos, said Vela.
"Our daily valuation calculations of Afores' portfolios show us that we already have capital gains of approximately 100bn pesos so far this year, they change a lot from day to day but there is a clear upward trend."
Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.
News in: Political Risk & Macro (Mexico)

Political and water risks may limit Latin America’s datacenter boom – Moody’s
Even so, investments in datacenters in Latin America are expected to remain robust in the coming years.

New US-Mexico rail bridge expected to double freight capacity
The new rail bridge, the only one crossing the Rio Grande, links Laredo, Texas and Nuevo Laredo in Mexico’s Tamaulipas state.
Subscribe to Latin America’s most trusted business intelligence platform.
Other projects
Get key information on thousands of projects in Latin America, from current stage, to capex, related companies, key contacts and more.
- Project: Puerta de Oro Solar Park
- Current stage:
- Updated:
21 hours ago
- Project: Construction of River Works and Alluvial Control Salado River
- Current stage:
- Updated:
21 hours ago
- Project: Ventos de São Ricardo 08 wind farm (Cajuína complex - Phase 4)
- Current stage:
- Updated:
1 day ago
- Project: Ventos de São Ricardo 07 wind farm (Cajuína complex - Phase 4)
- Current stage:
- Updated:
1 day ago
- Project: Ventos de São Ricardo 06 wind farm (Cajuína complex - Phase 4)
- Current stage:
- Updated:
1 day ago
- Project: Ventos de São Ricardo 09 wind farm (Cajuína complex - Phase 4)
- Current stage:
- Updated:
1 day ago
- Project: Milpillas reservoir
- Current stage:
- Updated:
1 day ago
- Project: Copiapó Energía Solar photovoltaic and storage park
- Current stage:
- Updated:
1 day ago
- Project: Port of Spain (PPOS) port expansion
- Current stage:
- Updated:
1 day ago
- Project: Cañahuate photovoltaic park
- Current stage:
- Updated:
1 day ago
Other companies in: Political Risk & Macro
Get key information on thousands of companies in Latin America, from projects, to contacts, shareholders, related news and more.
- Company: Richard Hidalgo Vásconez Cía. Ltda.
- Company: Gobierno de la República de Surinam
-
The Government of the Republic of Suriname is the public administration established under its Constitution in 1987. It is composed of the President's office, integrated by the P...
- Company: Asociación de Aseguradores de Chile A.G.  (AACH)
-
Chilean Insurance Assocation A.G. (AACH) is a non-profit association, comprised of 56 insurance companies, incorporated in 1899 to promote the development and protection of insu...
- Company: Gobierno de la República de Chile