Afores increase international equity investments in Mexico

Mexican retirement fund administrators (Afores) have shown a significant preference for government instruments and international equity. During July, Afores notably increased their allocation to international equities, rising from 1.03 trillion to 1.228 trillion pesos, an increase of 197.873 billion pesos.

This capital flow exceeded investments directed toward the Mexican Stock Exchange (BMV) and the Institutional Stock Exchange (BIVA). According to data from the National Commission for the Retirement Savings System (Consar), foreign equity investments reached 13.70% of the total portfolio, while domestic equity represented 6.76% with a balance of 605,603 million pesos.

Government instruments remain the leading asset class, accounting for 51.25% of resource allocation. Conversely, domestic private debt decreased to 11.38%, and structured investments fell to 7.76%. Investment in Real Estate Investment Trusts (Fibras) rose to 3.12%, driven by periodic distributions and nearshoring-related industrial growth.