Afore XXI Banorte Adopts Target-Date Funds
Posted on 01/07/2020
Mexico’s Afore XXI Banorte rolled out a new series of funds called SIEFORES Generacionales, which officially started on December 13, 2019. The fund products have a new investment strategy according to the investment time horizon of each generational cohort. Essentially, SIEFORES Generacionales are modeled after U.S. target-date funds. The new funds will go from five to ten generational blocks. The first generational block is called Initial Basic and will register people who are under 25 years old.
In addition, the Mexican government has been putting pressure on afores to reduce their commissions and fees charged on money management.