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Afore Sura funds $150m Investec global equity mandate

Afore Sura funds $150m Investec global equity mandate

Mexico pension fund Afore Sura has handed Investec Asset Management $150 million for a global equity mandate, further diversifying the firm’s international portfolio.

Investec manager Clyde Rossouw (pictured) will run the mandate using the same investment style as his $3.7 billion Luxembourg-domiciled Investec GSF Global Franchise fund, Richard Garland, managing director, global advisor at Investec, confirmed to Citywire Americas.

The mandate, funded January 9, is Afore Sura’s third global equity deal after funding a $150 million mandate to Morgan Stanley Investment Management and a $200 million to Pioneer Investments, now Amundi Pioneer, in March 2017.

It initially hired the firms to run global equity strategies in 2013, however, it is not unusual within the Mexican pension industry to see a lag between awarding the mandate and their actual funding.

The firm selected US firm State Street as the international custodian for the mandate.

Afore Sura is Mexico’s third largest pension fund with 628.7 billion Mexican Pesos ($32 billion) in assets as of the end of November.

Future funding

As of this month, Mexico’s pension regulator Consar has loosened rules over how the Afores can invest abroad, allowing them to invest in foreign mutual funds for the first time.

Afore Sura said it was still considering the rule change and is expecting more clarification from Consar before reviewing their investment strategy. 

‘When these [new rules] are published we will evaluate the best investment strategy. In terms of mandates, we continue to be open to seeking the best managers to strengthen our investment strategy,’ a spokesperson for the firm said. 

Mexican pension funds can invest up to 20% of their portfolios in foreign assets, however. the majority of Afores have yet to take full advantage of this option.

Of the 11 pension funds in the Mexican market, only four Afores have awarded international investment mandates so far. 

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