Profit of the Afores fell 65% at the end of November: Consar

Las retirement fund managers (Afores) obtained a profit of 5,125 million pesos between January and November 2022, which meant a 65% drop, in real terms, when compared to the same period last year, according to data from the National Commission of the Retirement Savings System (Consar).

Likewise, the figures from Consar, in charge of Iván Pliego Moreno, also revealed that there are still two administrators (Invercap and Principal) that continue to post losses so far this year.

Meanwhile, if one compares the utility November with the earnings of October of this year, the administrators registered a profit of 1,133 million pesos.

The contraction in profit Retirement Savings System (SAR) is linked to the commission cap -approved in the reform to the SAR Law of 2020- that the Afores charge on the worker’s balance and which forced a historical decrease from 0.80 to 0.57% in the average commission for this year .

It should be noted that the commission income they are the main source of funds for fund managers, therefore the drop of 23 percentage points in this category has impacted the entire industry.

In this sense, commission income registered 26,531 million pesos between January and November, which meant a drop in real terms of 32.2% when compared to the same period last year.

Only in the eleventh month of the year, income from the collection of commissions from the Afores registered 2,384 million pesos, this represented an annual contraction of 35% in real terms.

In this context, the Consar confirmed that the average commission charged by the Afores on the worker’s balance will continue at 0.57% by 2023.

However, Iván Pliego Moreno, president of Consar, commented a few days ago that a retirement fund manager still does not adhere to the maximum limit of 0.57% for the following year.

Pliego Moreno explained at that time that he had requested more information from the afore to justify the proposed commission charge.

In this sense, the official added that around these dates is when the Governing Board of the Consar and a decision will be made on that issue.