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Mexico's largest pension fund awards Asian equity mandate to Pioneer

Mexico's largest pension fund awards Asian equity mandate to Pioneer

Pioneer Investments has been awarded an Asian equity mandate by Afore XXI Banorte worth $150 million (€141 million) with the Mexican pension fund expected to announce more asset managers on this mandate in the coming weeks.

As the country's largest pension fund with €28.7 billion in assets under management, Banorte currently has one other mandate for European equity worth $1.2 billion, which it awarded to Schroders and BlackRock back in 2014.

The investment strategy adopted by the Mexican Afores for their international market exposure is to award a mandate to more than one manager, usually between two and five.

In the case of Banorte's Asian equity mandate, Pioneer Investments is the first to be announced.

While the funding period for the European equity mandate took almost two years, BlackRock were handed $320 million to manage only at the start of 2016, Banorte expects it to be quicker this time round on the back of regulation flexibility and experience acquired.

Its Asian equity mandate with Pioneer Investments will invest in the Asia Pacific region including Japan, allowing its investors to benefit from emerging Asia potential while investing in developed market companies based in Japan and Australia, according to a statement by the asset manager.

Commenting on the news, Jose Castellano, head of Iberia, North America offshore & Latin American markets at Pioneer Investments, said: 'Pioneer Investments opened a Mexico Office in 2012 and being able to work with Afore XXI Banorte is the culmination of efforts from a variety of areas of our business.

'Afore XXI Banorte is the largest pension fund in Mexico and key for our consolidation as a top international active manager in the country and the region.'

The $246 billion global asset manager has two mandates with Afore Banamex, Mexico's second biggest pension fund with $24.5 billion assets under management. It is one of five managers running its European equity mandate and of one of four selected to run its Asian equity mandate.

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