Mexico’s pension funds will probably double their assets under management over the next five years as the country’s economic expansion fuels job growth, according to BlackRock Inc.
Money managed by pension funds, known as Afores, may reach $300 billion by 2017 from a current $139 billion, according to Isaac Volin, BlackRock’s Mexico country head. Assets managed by mutual funds may also almost double over the period, Volin said. He said the combined total managed by pension and mutual funds could reach $500 billion in the next five to seven years.
“You see a very vibrant asset-management industry and we see a lot of opportunities there for our business,” Volin said in an interview at Bloomberg’s Mexico City office. “We expect the asset management industry in Mexico to basically duplicate.”
Volin said he expects Latin America’s second-biggest economy to expand more than 4 percent this year after growing 3.9 percent in 2011.