The last five years have been ones of intense transformation for the largest pension fund in Mexico. Establishing a sound and replicable investment process has been one of the main challenges for the team. Changing the team’s culture towards long-term investing, based on optimising diversification, has been the name of the game, and even though there are additional challenges in the future, positive results arise both from a quantitative and qualitative perspective.

As a fusion between Banorte Bank and the Mexican Social Security Institute (IMSS), Afore XXI-Banorte is Mexico’s largest pension provider and is rightly held to extremely high standards of responsible investing. This partnership resulted in strong governance that provides both robustness and business continuity.

This partnership provides a unique mix of social responsibility, focus on profitability and awareness of environmental, social and governance (ESG) issues, which are increasingly important both to corporations and individuals investing for their pension. The knowledge sharing has not only resulted in high profitability levels for the company, but also in levering high standards that have resulted in having the most extensive regulatory licences in the system, which brings to the table better options for building portfolios in a more diversified way and the flexibility to diligently manage risk and active exposure in the markets.

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