Background on David Razú and Afore XXI Banorte
David Razú is the General Director of Afore XXI Banorte, one of Mexico’s largest pension fund administrators. With over 7.3 million individual accounts and approximately 1.53 trillion pesos in savings, Afore XXI Banorte plays a significant role in Mexico’s retirement savings landscape.
Mexico’s Geopolitical Advantage and Infrastructure Investment
In an interview ahead of the Encuentro Amafore 2025, Razú highlighted that Mexico is experiencing an extraordinary moment, making it “super attractive” for Afores to invest in infrastructure. He emphasized that there will be substantial investment in infrastructure, not just from Afores but also from other sources.
Razú referred to the Plan México, initiated by President Claudia Sheinbaum’s administration, which aims to allocate around 270 billion US dollars for infrastructure investment. He believes that Mexico’s current geopolitical situation positions it as the ideal manufacturing partner for North America, attracting numerous American and European companies.
He further explained that Mexico’s strategic location makes it an attractive gateway to the North American market, along with a growing domestic market due to rising wages and reduced poverty levels. Razú also mentioned that the terms of the newly signed USMCA (United States-Mexico-Canada Agreement) are expected to be favorable for various types of production, including manufacturing and consumer goods.
Macroeconomic Conditions Supporting Infrastructure Investment
Razú pointed out that Mexico’s solid macroeconomic conditions, such as controlled public debt, record-high international reserves, and currency stability, create confidence for long-term investments like infrastructure.
As the director of one of Mexico’s largest Afores, Razú stressed that investing in infrastructure is crucial for the country’s development, aligning with the objectives set by the Law for the Retirement Savings System (SAR).
However, he emphasized that such investments must always prioritize the best interests of workers. The primary goal of the SAR system is to secure the highest possible returns for savers, with the methodology being a secondary consideration.
Afore XXI Banorte’s Involvement in Infrastructure Projects
Razú mentioned that Afore XXI Banorte is already participating in various infrastructure projects, which are part of the Plan México, though he did not specify the exact projects.
He outlined three key criteria for Afore XXI Banorte to invest in a project: demand (the project should generate value and be needed), controlled risks, and adherence to Environmental, Social, and Governance (ESG) criteria.
Razú highlighted that due diligence processes ensure Afore XXI Banorte’s investments are well-managed, preventing any misallocation of funds in the system’s 27-year history.
The SAR System’s Challenge: Consolidation and Adaptation
Regarding the SAR system’s challenges, Razú identified consolidation and adaptation as key priorities. He mentioned recent reforms in 2020 that increased mandatory contributions, lowered commissions, and reduced the number of weeks required for a guaranteed pension.
Additionally, Razú pointed to the creation of the Universal Pension for Older Adults in 2019 and the Fondo de Pensiones para el Bienestar in 2024, which have strengthened Mexico’s retirement system to become one of the “most robust in the world.”
Razú concluded that the primary challenge for the SAR system is to continue consolidating and adapting to ongoing changes in the industry.
Key Questions and Answers
- What makes Mexico an attractive destination for infrastructure investment? Mexico’s favorable geopolitical position, growing domestic market, and strategic location make it an attractive destination for both American and European companies.
- What macroeconomic conditions support infrastructure investment in Mexico? Controlled public debt, high international reserves, and currency stability create confidence for long-term investments like infrastructure.
- What criteria does Afore XXI Banorte use to evaluate infrastructure projects? Afore XXI Banorte assesses demand, risk control, and adherence to Environmental, Social, and Governance (ESG) criteria before investing in any project.
- What are the main challenges facing Mexico’s SAR system? The primary challenges for the SAR system are consolidation and adaptation to ongoing changes in the industry.
