Mexico’s Afores Post MX$143.6 Billion Gains in August, Up 93%

Mexico’s pension fund administrators, known as Afores, reported MX$143.6 billion (US$7.8 billion) in investment gains for August, a 93% increase from July, according to the National Commission of the Retirement Savings System (CONSAR). This marked the fourth consecutive month of positive returns, bringing cumulative gains for the first eight months of 2025 to MX$752.1 billion—the highest on record for this period and 35% above 2024’s total.

The gains coincided with global stock market rises and a 25-basis-point cut by the Bank of Mexico, which lowered its benchmark rate to 7.75%. The S&P 500 gained 1.9% in August, while Mexico’s S&P/BMV IPC rose 2.28%.

Afores invest workers’ retirement savings across government debt, equities, and private debt. Over half of their portfolios were in Mexican government securities, including Cetes and Udibonos; international equities represented 13%, Mexican equities 7%, and domestic private debt 11%. High-performing instruments historically include Udibonos, CBICs, international securities, and private debt, with cumulative historical gains reaching MX$4.15 trillion—55% of all managed assets.

By August, Afores managed 68.8 million accounts, 17.5 million unclaimed, totaling MX$7.78 trillion (22% of GDP). Between January and August, 1.24 million unemployment withdrawals were made, totaling MX$24.6 billion, a 25% year-over-year increase. CONSAR highlighted ongoing fraud, involving inflated salaries and simulated layoffs, despite the July 2024 validation mechanism.