Investments will no longer be mandatory for AFOREs

Recently, the Senate approved the Law to Promote Investment in Strategic Infrastructure for Development and Well-being, which has raised questions about the potential targeted use of funds from retirement fund administrators (AFOREs) for government projects.

However, this law does not modify or establish an obligation for these institutions to allocate a specific percentage of workers’ savings to public works.

Currently, the regulatory framework allows AFOREs to invest up to 30% of their assets in structured instruments; this limit, defined by the National Commission for the Retirement Savings System (CONSAR), was not altered by the new law.

The Mexican Association of Retirement Fund Administrators (AMAFORE) emphasized that this cap “already existed” and the reform does not modify, expand, or make it mandatory; AFOREs continue to have investment freedom, provided that it adheres to the current investment regime.

According to CONSAR data, of the US$473 billion managed by AFOREs, US$126 billion is invested in productive sectors of the national economy. Another US$8 billion is in development bank projects, and US$7 billion in state-owned productive enterprises.

AMAFORE emphasized that AFOREs will invest in infrastructure when projects are profitable, well-structured, and pass the technical and risk filters required by their mandate.