Siefores (Specialized Retirement Fund Investment Companies) manage individual Afore accounts using various financial instruments designed to maximize returns for workers. These entities operate under the oversight of the National Commission for the Retirement Savings System (Consar).
Since 2019, the operating model for these entities has transitioned to segmenting accounts based on the age of the workers. The Mexican Association of Afores (Amafore) notes that there are currently 10 Siefores, which divide savings into specific age brackets.
The current structure ranges from the Basic Initial Siefore to the Basic Pension Siefore (SB0). For example, a worker born in 1998 will automatically remain in the 95-99 Basic Siefore until they reach retirement age.
Each of these companies specializes its investment strategy to benefit its designated group. The central objective is to maximize the final pension amount through strategic asset management.
Investment Destinations
Article 43 of the Retirement Savings Systems Law stipulates that investments must prioritize national productive activity and job creation. The regulations also require that funds support housing construction, strategic infrastructure development, and regional growth throughout the country.
To meet these objectives, Consar translates these guidelines into specific instruments such as FIBRAs (Real Estate Investment Trusts), commodities, equities, and international securities. Structured instruments are also utilized to finance long-term projects.
These structured instruments allocate capital to sectors including energy, telecommunications, logistics, and industrial parks. Consequently, workers' savings are used to fund Mexican companies with high growth potential and essential infrastructure projects.
