Mexico's pension funds invest 3.6% of assets in energy

Mexico's private pension fund administrators, known as Afores, have invested 3.6% of their assets under management in the energy sector, according to pension system regulator Consar.

At the end of June, the Afores managed total assets worth 6.23 trillion Mexican pesos (US$345 billion). Of that total, US$12.6bn was dedicated to the energy sector, Consar said in a statistical release. 

That amount was 0.9% lower than at the end of 2023, when 3.8% of the funds' assets were in the energy sector.

At the end of June 2024, the Afores also managed a total of US$34.8bn of assets in the infrastructure sector.

The pension funds invest in the energy and infrastructure sectors mainly by purchasing debt instruments.

Consar said that the Afores were the second largest supplier of financing in Mexico's financial system, with a 19.7% share of finance, only behind the 43.5% share of banks. The resources managed by the funds are equivalent to 19.3% of the country's GDP, up from 19.1% at the end of 2023.