Financial uncertainty causes capital losses in the Afore

Financial uncertainty causes capital losses in the Afore

“At Consar we promote that they be informed and not rush to make decisions,” said Iván Pliego, president of Consar.

In May, losses amounted to 244,023 million pesos (mdp), according to figures from the agency.

Iván Pliego highlighted that despite these figures, the greatest losses have occurred in the accounts that are at greatest risk, that is, of the youngest people, while they are seen less in the accounts of workers who are about to retire.

In May there was a loss due to the fact that the rates have presented upward movements, especially those of the United States. The rates of that country, being the reference for other economies, have an impact on Treasury bonds because they are short-term, explained Janneth Quiroz, Deputy Director of Economic Analysis at Monex Grupo Financiero.

“For June we would expect the same trend of losses since in that month we have seen greater volatility in the markets due to very accelerated inflation data in the United States,” he said.

As of May 2022, the Afores managed a total of 5.1 billion pesos. Until that same date, the system has a total of 70.8 million accounts, with an average balance of 85,000 pesos per account.

“The period of volatility will continue, the inflation data in the United States is expected and this will continue to generate increases in central bank rates and therefore losses in bond portfolios. The volatility of the financial markets is recovering. But these movements do not have permanent effects,” warned Bernardo Gonzalez, head of the Mexican Association of Afores (Amafore).

Amafore recalled that capital losses are temporary and historically there have been 45 months of capital gains compared to 8 months of capital losses.

Bernardo González said that the effects of the disabilities will not be permanent, so he asked to be informed of the information issued by Consar each month.

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