The Afore lost money

National
The “Afore” lose money
By: Carlos Damian February 23, 2010
Use "discretionary" of 77 thousand 561 million by SHCP
Instead of a public fideicommissum constituted one private
México. – The Secretariat of Estate and Treasure (SHCP) ignored the Federal Law and the Regulation of the Federal Law of Budget and Responsibility of Treasure (LFPRH), that was ordering to it in the year 2008, to create the fund of support for the Restructures of the pension (FARP) as public fideicommissum, but yes constituted a mandate (private fideicommissum figure) to which destined 77 thousand 561 million of pesos. Such figure must be have used par to alleviate the problems of the pensions in the country.

The audit Superior of the Federation (ASF) reveals in its report of the Result of the Inspection Superior of the Public Account 2008 that the federal executive incurred in "excessive discreetness" by conduit of the Treasure Secretariat, upon destining the multimillionaire quantity of money for a mandate whose destination is ignored. Once overdraft the act of discreetness in the bosom of the federal government, the ASF requested that the internal organ of control in the SHCP accomplishes the relevant investigations and in its case begin the administrative procedure to put the demands of the administrative responsibilities discreetness of the public servants that in its management did not constitute the Fund of Support for the Restructures of Pensions as a public fideicommissum and deposited federal resources by 77 thousand 561 million of pesos.

Such resources "would be provided in the patrimony of that fund, in an account in the Treasury of the federation, act that designated analogous mandate without be empowered for this, using the departure 7802 Contributions to Public Mandates, in no fulfillment to the Federal Law of Budget and Treasure Responsibility". in order to proving that the resources that the federal government destined for FARP are adjusted to disposed what is in the LFPRH., the investigating organ requested the SHCP the elements of those which was thrown hand in 2008. The general address of financial Resources of the secretariat informed that were destined initially for FARP, 77 thousand 450 million.

The administrative captured greater quantity of resources
The resources of the workers in hands of the Fund Administrative for the Pension (Afore), lost 4 thousand 400 million of pesos, reveal reports of the National Commission of the System for the Pensions (Consar). The wastage was attributed to the instability of the international stock markets. According to the reports, The “Afore” captured in January of 2010 the greater resources wining of the workers in the pasts 21 months. The “Afore” closed January with a monthly yield joint of hardly 0.09 percent, that in terms annuity equals to a yield of 1.12 percent, less than a fourth part of the inflation index projected by the government for this year of 4.7 to 5.2 percent.

This modest yield is resulted of the wrong performance of the variable income portfolios, as consequence of the setback in the global stock markets. In spite that the resources invested in the stock markets only represent 13 percent of the total of administered assets, the appreciation acquired in the debt portfolios were not sufficient to compensate the setbacks in the Investment Societies Specialized in Funds for the Pension (Siefores) basic 4 and 5, for persons until of 36 years old, whose monthly yields were - 0.17 and - 0.32 percent respectively.

Historically, the “Afore” have been characterized by maintaining a position largely in debt instruments, mainly governmental (Cetes, Bonds, bonus IPAB), the one which closed January with a participation of almost 67 %, followed by the investment in corporative papers with 16.6 percent and international debt with 4.1 percent. The total position in the international and local stock market ended January with a representation altogether of almost 13 percent of the total of assets in custody.

In this way, the “Afore” ended January with a total position in variable income of 146 thousand 200 million of pesos, amount that represents a reduction of 1.6 percent compared with 148 thousand 600 million registered to the close of 2009. The position in the local stock market presented a monthly growth of 0.9 percent, upon going from 102 thousand 650 million of pesos in December of 2009 to 103 thousand 500 million in January.

Por su parte, la posición total de las Afore en los mercados accionarios internacionales presentó una fuerte reducción de 7.2 por ciento como consecuencia del retiro de flujo de inversión por mil 500 millones de pesos, que se sumaron a las minusvalías obtenidas por el ajuste en los mercados accionarios internacionales, las cuales ascendieron a mil 800 millones de pesos. (La Jornada, economía, p. 21, 21 de Febrero, 2010)

As far as it is concerned, the total position of the “Afore” in the international stock markets presented a strong reduction of 7.2 percent as consequence of the withdrawal of investment flow by thousand 500 million of pesos, that were added to the minus worth obtained by the adjustment in the international stock markets, those which ascended to thousand 800 million of pesos. (La Jornada, economía, p. 21, 21 de Febrero, 2010)