Pension funds face crisis of low returns

Headline: Pension funds face crisis of low returnsSource: EuromoneyDate: January 2002Author: Robin Emmott Mexico         Vicente Corta Historically low interest rates are a boon for borrowers. Yet for Mexico’s pension fund administrators they have become a headache. Four years or so ago, Mexico’s pension fund managers had merely to invest in government […]

Headline: Pension funds face crisis of low returns
Source: Euromoney
Date: January 2002
Author: Robin Emmott

Mexico

       
Vicente Corta
Historically low interest rates are a boon for borrowers. Yet for Mexico’s pension fund administrators they have become a headache. Four years or so ago, Mexico’s pension fund managers had merely to invest in government bonds, sit back and watch real returns of 13% roll in. Those were the days of interest rates at 25%.

Today, as in the 1990s, 89% of pension funds in Mexico are invested in government bonds.








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