The investment companies specialized in retirement funds ("SIEFORES" as per its initials in Spanish) will be able to invest in stock certificates of investment projects ("CERPIS" as per its initials in Spanish) investing outside of Mexico if at least 10% is invested in Mexico.
On January 5th, 2018, amendments to the General Provisions for the SIEFORES' Investment Regime (Circular del Régimen de Inversión de las SIEFORES) were published in the Official Journal of the Federation, abrogating the previous amendments published on September 19th, 2017. It establishes, among others, the adjustment of the diversification criteria to be observed by SIEFORES, where SIEFORES will only be able to acquire those stock certificates of investment projects ("CERPIS" as per its initials in Spanish) which allocate at least 10% of the maximum authorized total amount of the emission, to the investment or the financing, of activities or projects within the national territory, of one or more companies. In case an investment allocated within the national territory is below the minimum percentage required, it will be abided by the General Provisions for Financial Matters ("CUF" as per its initials in Spanish), which are expected to be modified in the following days to make them consistent with the amendments.
Basic SIEFORES may invest up to 20% of the SIEFORES' Total Assets, in foreign securities and CERPIS, investing or financing activities or projects outside the national territory. Likewise, SIEFORES may also acquire structured instruments that invest or finance the acquisition of Mexican companies' equity, whose shares are listed in a stock exchange authorized to organize and operate in terms of the Securities Market Law, provided that the latter had been financed through a structured instrument.
In the same way, Mutual Funds are included as an additional investment vehicle. Mutual Funds are national or foreign entities, which are registered, regulated and supervised by an authority of eligible countries as long as its investments comply with the regulation of their country of origin, investing in equity, real estate or fixed income instruments.
Finally, it is included within the definition of variable income (or equity) instruments, warrants adhered to equity shares of a private company, object of a total or partial initial public offering, which have as underlying assets, equity shares of the same private company.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.