Afores (Pension Funds) Now Allow Outside Managers

The Mexican pension fund system is going through a revolution, paving the way for greater opportunities for asset managers.

In March 2011, Consar, the Mexican pensions regulator, released a directive that allows pension schemes (Afores) to employ external managers to look after a portion of their assets.

This must come as good news for the asset management industry, considering that Mexican pension funds have now roughly $120bn of assets under management, corresponding to 10 per cent of Mexico’s gross domestic product.

Source: The FT