MEXICO - Mexican pension funds have agreed to only invest in domestic investments this year and will focus on investing in real estate to help boost the struggling Mexican economy.
The Asociación Mexicana de Administradoras de Fondos (AMAFORE), which groups together all Mexican pension funds, has agreed to invest employee and employer contributions into housing and strategic infrastructure projects similar to Real Estate Investment Trusts (REITs), to help create jobs, increase investment activity and lift the country's financial markets.
AMAFORE insisted all national investments made would "prioritise achieving competitive returns for workers".
The initiative was drafted by Mexico's private pension funds, which are known as Afore, and which between them served over 39 million workers at the end of 2008.
AMAFORE was created in 1997 to represent the interests of its pension fund members. It is today made up by Mexico's 18 pension funds, including those provided by HSBC, ING and Metlife.
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