Latinnews Daily - 22 January 2018

* According to new figures from Mexico’s finance ministry (SHCP), to the end of 2017 local private pension fund administrators (Afores) had accumulated some M$3.1trn (US$170.5bn) in total savings – equivalent to 14.8% of the country's GDP and 7.3% higher than that registered in 2016. An SHCP press release notes that Afores achieved annual investment returns of 9.85% on average in 2017 while the annual average rate between 1997 and 2017 was 11.45% or 6.2% in real terms. In 1997 Mexico reformed its pension system, transforming it from a pay as you go (PAYG), defined benefit (DB) scheme to a fully funded, private and mandatory defined contribution (DC) scheme.

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