Short after a change in leadership in Afore Pensionissste, with Rodolfo Campos Villegas, as its new CEO and Ruben Omar Rincón Espinoza, as its new CIO, the Mexican pension fund is really shaking things up. An example of this is that they have granted their first investment mandate.
Sources close to the operation told Funds Society that Afore Penionissste has chosen BlackRock to invest part of their portfolio in european equities. Up until recently the afore had very small international allocation given it is one of the three ones that is not allowed to invest in derivatives and thus, properly hedge risks, but things are about to change.
One of the highlights of this pension fund is that it has the lowest fees of the Mexican system charging only 0.86%, while the system's average is 1.03%.
Campos Villegas also plans to grow their allocation to the energy sector while reducing Mexican government debt.