Pension system reaches historic AUM levels in October

Tuesday, November 22, 2011

The assets under management held by Mexican pension fund managers (Afores) at end-October rose by 7.2% in real terms compared with the same time in 2010, according to a report from the finance ministry.

The report said that total funds administrated by the Afores amounted to 1.57tn pesos (US$111bn) at the end of October, the highest in the history of the pension system.

This figure is equivalent to approximately 11% of the country's GDP. The two biggest Afores are controlled by banking giants BBVA (NYSE: BBVA) and Citigroup (NYSE: C).

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Saving for retirement is the most profitable destination for resources available to the workforce when compared with time deposits or promissory notes, the ministry also said in the report.

To read the full report, in Spanish, go to this link