- The agency, an affiliate of the Fitch Ratings Group, highlighted the quality of the company, its controls, investments and operations.
The strength of its shareholders and market positioning were some of the qualities that motivated the rating agency FIX SCR Uruguay to evaluate AFAP SURA with the Highest Standards as an asset manager, in the categories Company, Controls, Investments and Operations, in addition to weighting the Technology category with High Standards.
The region's leading ratings agency, affiliated with the Fitch Ratings Group, is internationally recognized for using rigorous analysis methodologies and models to achieve transparent and independent results.
The rating system applied this time is governed by the National Rating Procedures Manual for Asset Managers. Its measurement scale ranges from Good Standards, High Standards to the Highest Standards. In this case, AFAP SURA received the top evaluations as a manager of third-party assets, such as pension savings funds.
“We are proud to see the fruits of our collective effort reflected in the levels of excellence in which we are positioned by prestigious and rigorous rating agencies. It is a way of validating our commitment to our clients in how we invest their savings, how we manage the risks involved and the support provided by the entire organization,” said Santiago Hernández, Investment Manager of AFAP SURA.
According to the FIX report, the firm considers being part of the holding of SURA Asset Management - the main pension fund manager in Latin America - is a relevant factor in the rating.
“AFAP SURA benefits from the operational synergies derived from its membership in SURA Asset Management, its high standards of corporate governance, track record and expertise on the economic sector in which it operates, and its consistent performance over the years,” the document states.
On the other hand, the text highlights the consolidation that AFAP SURA has had in the market, since it is currently the second largest pension savings fund manager by total number of members and contributors (23% and 21% respectively as of June 2022), and by assets managed under the Pension Savings Fund, concentrating 18% of the total assets managed by the system.
In that regard, the rating agency's document states that “the company maintains a consolidated position in the industry in which it operates, supported by SURA Asset Management's experience and knowledge, and with a high potential for future growth”.
In turn, the company obtained an outstanding evaluation for its high corporate governance standards, derived from the application of SURA Asset Management's internal governance policies at a regional level for all its subsidiaries. In this regard, the FIX report mentions that the control system is based “on the policies and procedures of its Integral Risk Management System, based on three lines of defense with a clear division of independence between the areas in charge of risk management and monitoring functions, which minimizes conflicts of interest and ensures the transparency of its operations”.
In reference to AFAP SURA's investment processes, the rating agency mentions that the organization has a “consistent investment process”, based on the clarity of its investment objectives, philosophy, and risk limits. It also mentions that the management of this sector has a staff of highly trained professionals subject to ongoing training by SURA Asset Management, good processes and methodology for control and monitoring, as well as a timely reporting system for decision making.
AFAP SURA S.A. (AFAP SURA) is a corporation whose main activity is the administration of a Pension Savings Fund under the regime established by Law No. 16,713 of December 1995 and Law No. 19,162 of November 2013, and its regulations.
AFAP SURA's capital is wholly owned by SURA Asset Management Uruguay Sociedad de Inversión S.A. (SURA AM Uy), both entities belonging to Grupo de Inversiones Suramericana S.A. (Grupo SURA) through SURA Asset Management S.A. (SURA AM) (rated BBB for its Long-Term IDR with Stable Outlook by Fitch Ratings), which concentrates the business unit linked to pension fund management. Grupo SURA (currently rated BB+ for its Long-Term IDR with Stable Outlook by Fitch Ratings on the international scale) is a holding company with investments focused mainly in the financial services sector.
About SURA Asset Management
An expert in savings and retirement, investments and asset management, SURA Asset Management is present in Chile, Mexico, Colombia, Peru, El Salvador, Uruguay, United States, Luxembourg and Argentina. It is a subsidiary of Grupo SURA, with other minority shareholders. As of September 2022, SURA Asset Management manages USD 142.0 billion in assets, which belong to nearly 22.6 million clients in the region*.
* Clients and AUM include AFP Protección in Colombia and AFP Crecer in El Salvador.
