Mexico's pension funds, known as Afores, will be allowed to invest in most commodity-linked securities starting June 20 as regulators seek to allow them to diversify investments.
The pension funds will be able to invest in commodity futures, options and swaps contracts, Mexico's central bank said in guidelines published in Friday's official gazette. About $9 billion in pension assets will be eligible to invest in commodities, according to Bloomberg calculations.
Mexican pension funds, with 1.68 trillion pesos ($121 billion), since December have been able to invest 5% to 10% of some portfolios for younger workers in commodity-linked securities. The Afores had mostly allocated their holdings to the country's debt markets.
Afore Banamex, Mexico's largest pension fund, plans to “gradually” invest as much as 2% of total assets in commodities, said Luis Sayeg, CEO of the bank's pension unit. The fund will hire a third-party asset manager for such investments, Mr. Sayeg said in a June 11 interview. Afore Banamex manages about $22.5 billion, according to data from the country's pension regulator.