Afore Banamex announced that it has awarded its fourth international investment mandate, worth between US$500 and US$600 mn, in separate accounts to four international fund managers: Wellington Management, BlackRock Pioneer Investments, and Nomura Asset Management.
Also noteworthy is the fact that this mandate is also the fourth in the history of the Mexican Retirement Pension System, as Afore Banamex is the only pension fund manager that has generated mandates under the precept approved by the Consar in 2013.
The aim of this operation is to diversify the investment strategy through this legal precept by which Afore Banamex hires the services of the mandataries so that its clients can access investments in Asian markets, particularly in Japan, Australia, South Korea, Singapore, China, India, and Hong Kong, with the most specialized and experienced teams in financial asset management worldwide.
Gustavo Lozano, CEO of Pioneer Investments, told Funds Society that this latest mandate, which is not the first which Pioneer Investments receives, shows that "we have been able to import and offer our knowledge and skills to the asset management industry in Mexico, offering diversification strategies and providing expertise in risk and asset management which will help to solidify the pension industry in Mexico. This will benefit the country’s pensioners and savers," he pointed out.
It should be remembered that last October Consar authorized the funding of Afore Banamex’ investment mandate in European equities to Pioneer Investments, a US$400 mn separate account which was awarded in October 2013. The total amount of that mandate, which was also granted to BlackRock, BNP Paribas, Franklin Templeton and Schroders, was US$1bn.
The combined amount of the four mandates approved to date by the Mexican Pension Funds’ System regulator exceeds US$1.8bn , including the last US$600 mn dollars of this latest Afore Banamex mandate.
As was pointed out by company sources, "Afore Banamex is still the only Afore in Mexico to implement and fund these type of investment strategies, demonstrating its commitment to innovation and efficiency, once again enabling it to offer its clients the best returns through an internal process strictly adhered to the financial system’s official standards and best practices in risk control issues."