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Pension funds management company Profuturo completes 25 years

IFM_Profuturo CEO Arturo Garcia-image
Profuturo's novel ESG practises aligns with its long-term vision of better portfolio management for the people of Mexico.

Profuturo, a Mexico based pension funds management company has reached its first 25 years of existence with close to seven million clients, nearly 859 billion pesos managed, and the most competitive performance in the market, ranking second in this industry’s market share with 17.4%. Backed by Grupo Bal, one of the most significant business conglomerates, the company has strengthened its market presence by establishing itself as one of the main pension funds and institutional investors in the country over the years—offering a host of banking services like retirement savings plans, pensions and loans.

The company has redoubled its commitment to offer the highest standards of quality and service in order to maintain its leadership and establish itself as the optimal alternative for Mexican workers. The company has been awarded as the Best Pension Fund Manager at the International Finance Awards for the fourth consecutive year.

Profuturo’s 25-year history is characterized by innovation and continuous improvement in order to remain at the cutting edge, and by its mission to properly satisfy the needs of its clients, providing them with the most advantageous advisory services for their retirement. Throughout these years, the company has developed and incorporated various new practices and criteria in accordance with international standards to ensure solid investment management with a long-term vision and exemplary governance.

Among the broad array of efforts made by Profuturo in this regard, the company continues to incorporate sustainable, innovative, and exceptional practices, so that it may continue to provide its clients with significant benefits and attractive returns according to a long-term vision that will allow them to improve the quality of their lives in the future.

In line with this long-term vision and the company’s commitment to offer a better future for Mexican workers and for the country, since 2018 Profuturo has adopted ESG (Environmental, Social, and Governance) criteria in its portfolio management in order to offer its clients greater benefits while taking care of the environment.

For Profuturo, the incorporation of these types of criteria has been a natural step beginning that same year, when, within the framework of the signing of the cooperation and exchange agreement between the Green Finance Advisory Council (CCFV, Spanish initials) and the Green Finance Initiative of the City of London Corporation, Profuturo signed the investors’ statement on disclosure of ESG information, which, with the support of 51 institutional investors, promotes greater incorporation of these aspects into investment management while increasing transparency, sustainability, and the social benefits of the corresponding investment projects.

Through this statement, Profuturo, a member of the CCFV, made a commitment to the inclusion of a greater proportion of green assets in its investment portfolio. The company also aims to promote the long-term development of sustainable infrastructure in Mexico and incorporate a greater number of environmental, social, and governance factors into its investment management process.

Subsequently, in 2019 Profuturo signed the United Nations Principles for Responsible Investment (PRI), representing another milestone on the company’s road to continued strengthening and promotion of environmental, social, and governance elements in its investments. These principles are a set of six voluntary and aspirational precepts for the gradual incorporation of environmental, social, and governance
criteria into investment practice.

“This type of practice allows us to maintain a more harmonious and sustainable economic development, in addition to helping Mexicans achieve their goals for the future. We confirm our commitment to the advancement of responsible investing regarding the economy and society by thinking in the long term, thus positively impacting the future of Mexicans,” said Arturo García, CEO of Profuturo.

In line with its commitment to strengthen its investment portfolio with a sustainable approach, Profuturo became the first pension fund manager in Mexico to sign an agreement with the globally prestigious CFA institute, in order to certify its entire investment and risk teams in environmental, social, and corporate governance (ESG) matters. Through this training, Profuturo is convinced that its team will be better prepared and have a greater understanding of the trends in sustainable development and their application in investment processes.

The ESG criteria also help Profuturo to better allocate investments and obtain positive results, allowing it to achieve one of the highest scores in the governance pillar of the PRI (Principles of Responsible Investment). Furthermore, these criteria are fully consistent with our long-term vision for the benefit of our clients and Mexico.

In 2021, the Principles for Responsible Investment awarded the group an A rating for its responsible investment policy. This assessment is above average in Latin America and, internationally, which is only one step below the maximum for the category. Profuturo has also been recognized by ALAS 20, a Latin American initiative that comprehensively evaluates, scores, and recognizes excellence in the public
disclosure of information regarding ESG practices.

Finally, Profuturo has reinforced its commitment to providing a friendly and ethical work environment by continually maintaining its status as a Socially Responsible Company, an award given by the Mexican Center for Philanthropy (Cemefi, Spanish Acronym), and the Alliance for Corporate Social Responsibility (AliaRSE, Spanish acronym), in recognition of its outstanding sustainability strategy.

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