Mexican pensions’ regulator Consar has allowed pension schemes, known as Afores, to employ external managers for asset management, Financial Times reports. The selected external managers are required to have at least $50 billion in assets under management and the support of a custodian bank.
Afores may employ external managers to handle both Mexican and international mandates, but cannot invest over 20% of their portfolios outside Mexico. The pension funds can invest in domestic private equity, but not in hedge funds, commodities and overseas private equity.
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