MONTERREY, Mexico & NEW YORK--(BUSINESS WIRE)--Fitch Ratings has published a report titled 'Favorable Outlook for Siefores Investors in Mexico', which outlines the most important aspects that have allowed pension funds (SIEFORES) to grant competitive returns and show a good performance over the past years, as well as the factors that have driven mandatory pension fund managers (AFORES) to become important players within the Mexican financial system.
Also, the report talks about the development of the retirement savings system (SAR), within which, Afores have achieved great strength by registering significant growth in managed resources and handled accounts. However, within an environment of high competitiveness, the number of managers has been consolidating and, Afores with stronger standards of operation, have prevailed.
Another relevant item included in the report is the diversification that the portfolios of Siefores have achieved gradually over time, the participation in equity instruments has increased significantly, as well as in more sophisticated securities, with the knowledge that these have the potential to continue with a positive evolution in the medium and long term.
On the other hand, the Siefores investment regime has maintained a more conservative scheme than that of the pension funds of the major Latin America countries, and the report highlights their differing characteristics.
Furthermore, the report notes that the regulatory changes implemented by the Comision Nacional del Sistema del Ahorro para el Retiro (CONSAR), together with the dynamics observed in the industry, have been reflected in a more robust pension system.
By taking into account the elements that make up the Mexican pension system and their evolution, as well as the good performance registered by managers, Fitch believes that the AFORES market presents a favorable outlook for Siefores investors for the following years, through a prudent and, at the same time, more efficient management of resources by the managers, which could be evidenced by a higher pension replacement ratio for the worker.
For more information on the special report 'Favorable Outlook for Investors of Siefores in Mexico', please visit www.fitchmexico.com and www.fitchratings.com.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research: Favorable Outlook for Siefores Investors in Mexico
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=681745
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