Afores Register Their Second Month in Capital Gains 2020

Afores Register Their Second Month in Capital Gains 2020

The assets of the Retirement Fund Administrators (Afores) gained 143 thousand 761 million pesos in November, motivated by the positive performance of financial markets, mainly in equity markets in the world, their second best month in capital gains of 2020 .

According to figures released by the National Commission of the Retirement Savings System (Consar) tonight, the capital gains of the Afores returned in the penultimate month of the year, after they reported losses of 55 thousand 534 during September and October millions of pesos.

The capital gains of the Afores, in favor of the savers of the Retirement Savings System (SAR) reached an amount of 471 thousand 614 million pesos in the accumulated of the year (January-November).

The earnings of the administrators in November were slightly below the best month of the year, which April conquers with 144 thousand 447 million pesos; the above, after two previous months of disability.

Capital gains resumed their trend after the recovery experienced by the valuation of workers’ savings to the losses of September and October, caused by the effects that the global pandemic had on the stock markets, the United States elections and the hesitations of the arrival of the new vaccine.

After the United States elections , the markets considered as opportunity purchases a better expectation of the economy with a victory for Joe Biden, as the new tenant of the White House and with the prompt approval of a vaccine.

In Mexico, the Price and Quotation Index (IPC) of the Mexican Stock Exchange closed with an advance of 12.95 percent in November. This was the best monthly performance for the IPC since November 2005, beating even the gains of April this year, when markets recovered from the Great Lockdown, and 2009, when markets recovered from the Great Recession.

For their part, the S&P 500 and Nasdaq indices advanced at monthly rates of 10.75 and 11.80 percent, respectively, in November. So far this year, the S&P 500 is up 12.10 percent and the Tech Index 35.96 percent. Hence, markets had a profitable November and institutional investors, such as Afores, also jumped on the wave.

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