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Slim Plans to Boost Pension Returns by Buying Stocks

Carlos Slim, whose $60 billion fortune makes him the world’s third-richest person, plans to increase returns for pension fund clients of his Mexican bank by taking advantage of the slumping stock market.Slim’s $8.5 billion Afore Inbursa fund posted the biggest gains of the country’s five largest pension plans last year by keeping more than half of its assets in Treasury bills. Mexico’s benchmark Bolsa index dropped 16 percent in the past six months before today.

“The more the market declines, the more our holdings will change,” said Marco Antonio Slim Domit, Slim’s son and chief executive officer of Mexico City-based Grupo Financiero Inbursa SA, which oversees the pension fund. “There has been an important adjustment in the market, but nothing that makes me think we’ve touched bottom.”

New rules that take effect in March will allow Slim’s fund to increase its equity allocation to as much as 30 percent, part of a government initiative to improve the longer-term performance of pension assets. Inbursa had 5.7 percent of its assets in stocks last month, the third-lowest of the 21 state-regulated funds and below the current 15 percent limit.

If the Bolsa falls to 20,000, “we would go to the limit on stocks,” Slim Domit, 39, said in a Jan. 21 interview. The Bolsa fell 2.9 percent to 26,106.99 today at 12:11 p.m. New York time.

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