Mexico Pensions Continue Local Investing Pact

December 21, 2009 ( - Mexico's pension fund industry association said its members will extend until the end of May 2010 an agreement with the government to invest retirement savings in domestic assets.

Dow Jones reports that a statement from Amafore on Friday said its members decided to renew the pact until May 31 given “the more stable behavior of the financial markets in recent months” as well as “positive signs” of a recovery in the economy. The association said that until the end of May, “the parameter of investment in foreign assets will be reestablished in a gradual and ordered way as defined by current regulations,” according to Dow Jones.

Amafore first announced in March that its members would invest all new pension contributions and investment returns locally during 2009 to support the economy and stabalize domestic markets roiled by the global financial crisis.

Mexico’s compulsory retirement savings fund managers are the country’s largest institutional investors, reporting 1.124 trillion pesos ($87.57 billion) in assets under management at the end of November, according to data from regulator Consar.