During September, workers with a retirement savings account in an Afore will receive the account statement corresponding to the operation of their money during the second quarter of the year (May-August) and it is very likely that people will find a decrease in their accumulated savings.
The administrators have not been immune to the negative movements of the financial markets, to the effects of inflation and to the increase in the reference interest rate of the central banks, all this has impacted them and they have faced a phenomenon known as capital losses, which are virtual losses on the assets they manage.
This happens because the Afores invest the money they receive as contributions for workers’ retirement, voluntary savings, etc., and some of the instruments in which they have investments have faced negative movements due to the aforementioned factors.
The investments made by the Afores are under an investment regime that allows them to have the money diversified into different financial instruments and for different terms, which helps to ensure that in times of volatility the negative effects are not so marked.
“The volatility that may be generated in the international markets due to conjunctural events will not represent a change in the current situation of the Afores, since one of the advantages of the investment regime is that the administrators have a diversified portfolio that allows us to face these episodes”, according to data from the National Commission of the Retirement Savings System (Consar) in its report Why do Afore yields rise and sometimes fall?
Currently pension operators manage just over 5.1 billion pesos, of which 50.05% are invested in government securities; 15.13% in national private debt, that is, in local companies; 12.89% in international equities; 7.50% in structured instruments; 6.50% in shares of national companies, and the rest is operated in Fibras, merchandise, international debt and other assets.
“Investments are made through the Investment Companies Specialized in Retirement Funds (Siefores), and they do so in shares, titles and bonds of different companies in the world, which move over time, and a loss in its value it is called handicap”, informed the Mexican Association of Afores (Amafore).
The yields, that is, the profits that the Afores have obtained from the investment of workers’ money in the 25 years of operation that these companies have in Mexico amounts to 2 billion 236,412 million pesos, however, this year they reflect a decrease with accumulated losses of 233,598 million pesos.
Should handicaps be a concern?
The loss in the value of the assets managed by the Afores is momentary. Throughout the history of these companies they have faced disabilities, money that is recovered over time.
“In the event that the Siefore (where your money is invested) faces losses, it is important to remember that these only become effective, that is, they become losses, if it is decided to withdraw the resources at the time they arise,” explained the Amafore in a campaign called Did you have more money in your Afore yesterday?, which is promoted through social networks so that people who will receive their account statement this month understand why they could find a reduction in their savings.
The recommendation that both Bernardo González, president of the Amafore, and Iván Pliego, president of the Consar, the regulatory body of the Afores, have made to the workers, is that in times of disability they do not carry out procedures such as withdrawals for unemployment or marriage , do not change Afores or do not start the pension process, because in those moments the Afores make a cut of the money that you have and that is when the virtual losses materialize.
“This loss of value is momentary, that is, it happens in the short term,” affirms Amafore through different channels, and invites workers to remain calm in the face of these temporary events.
It is important to take into account the recommendations not to carry out withdrawal or transfer processes because this would have negative effects on your savings.
Be careful with the information that the agents show at this time to invite you to transfer your savings to the Afore where they work and avoid this process for the time being.
yuridia.torres@eleconomista.mx
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