With the reform to Pension System which entered into force last year, a greater number of people have had access to a guaranteed minimum pension or old-age pension, as confirmed by Afore Coppel.
In an interview for The Economist, Juan Manuel Valley. General Director of Afore Coppel, explained that during 2021 they had 69,000 rights, of which 36,000, that is, 52% corresponded to normal pensions and the remaining 48% corresponded to pension refusals.
“The previous year the percentage of pension refusals was 65%, so there was a difference of more than 10 percent.”
He added that the two years prior to the reform had an average of 50 minimum pensions guaranteed and in 2021 they increased to 3,600.
It should be noted that a pension denial occurs when the worker does not meet the minimum requirements to retire, which this year are: 775 weeks of quote and be at least 60 years of age at the time of submitting the application for the old-age severance pension and 65 years of age for the old-age pension.
grow active
Likewise, the manager highlighted the growth that Afore Coppel has had in the last two years, since it currently manages 14 million accounts and its assets as of March 2022 amount to 380,000 million pesos.
“Between December 2019 and March 2022, managed accounts grew by 25%, registered accounts grew by 22.4%, and accounts assigned to siefores they grew 61%, this was mainly due to the fact that at the end of 2020 we received approximately 480,000 accounts in the process of assigning and reallocating accounts carried out by Consar”, explained the manager.
He added that more than 50% of the accounts managed by Afore Coppel are for people under 37 years of age.
Investments
Regarding the way in which the Afore is investing the resources of the workers, the Coppel executive pointed out that they have a well-diversified portfolio.
“Currently the composition of the portfolios is as follows: 27.5% in Mexican government debt with the highest proportion in Udized instruments; 30.3% in corporate debt; 33% in national and international equities; in fibers and alternatives 2.9% and 3.3% respectively; and in repos and other assets around 3 percent”.
He indicated that in the last year the participation in government debt and in repos was reduced and the participation in corporate debt, equities, fibers and alternatives. In addition to that they are also actively investing in sustainable instruments.
“As of this year, policies and procedures were implemented to monitor exposure to environmental, social and corporate governance (ESG) risks, and a significant part of the investment portfolio has a ESG rating, and translates into the consideration of multiple sustainability elements as part of the evaluation carried out, which are managed using the MSCI methodology and platform”, he concluded.