General Provisions Establishing the Investment Regime for Specialized Investment Societies of Retirement Fund Societies

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DOF: 05/01/2018

GENERAL PROVISIONS establishing the Investment Regime to which specialized investment societies of retirement funds shall be subject.

At the margin, a seal with the National Coat of Arms, which reads: United Mexican States.- Ministry of Finance and Public Credit.- National Commission for the Retirement Savings System.

GENERAL PROVISIONS ESTABLISHING THE INVESTMENT REGIME TO WHICH SPECIALIZED INVESTMENT SOCIETIES OF RETIREMENT FUNDS SHALL BE SUBJECT.

CHAPTER I

COMMON PROVISIONS

Section I

Generalities

FIRST.- These provisions aim to establish the investment regime to which specialized investment societies of retirement funds shall be subject.

SECOND.- For the purposes of these provisions, the following shall be understood:

I.

Administrators, to the administrators of retirement funds, as well as public institutions that perform similar functions;

II.

Asset Managed by the Mandatary, to the market value of the Investment Assets of the Investment Society that are under the financial management of each Mandatary contracted by said Investment Society;

III.

Asset Managed by the Investment Society, to the market value of the Investment Assets of the Investment Society directly managed in terms of investments by it;

IV.

Total Asset of the Investment Society, to the sum of the Asset Managed by an Investment Society and of the Assets Managed by the Mandatories contracted by said Investment Society;

V.

Investment Assets, to the Instruments, Currencies, Foreign Securities, Equity Components, Neutral Investments, Structures Linked to Underlyings, Commodities and operations with Derivatives, repurchase agreements and securities lending;

VI.

Voluntary Savings, to the Complementary Retirement Contributions, Voluntary Contributions, Voluntary Contributions with Long-Term Investment Perspective and Long-Term Savings Contributions made by Workers;

VII.

Complementary Retirement Contributions, to the contributions made to the complementary retirement contributions sub-account referred to in article 79 of the Law;

VIII.

Long-Term Savings Contributions, to the contributions made by Workers to the sub-account provided for in fraction VII of article 35 of the Regulations of the Law;

IX.

Voluntary Contributions, to the contributions made to the voluntary contributions sub-account referred to in article 79 of the Law, without considering the Voluntary Contributions with Long-Term Investment Perspective;

X.

Voluntary Contributions with Long-Term Investment Perspective, to the Voluntary Contributions referred to in article 151 fraction V of the Income Tax Law;

XI.

Banks, to the Credit Institutions, as well as to foreign entities that carry out the same operations as the Credit Institutions;

XII.

Counterparty Rating, to the one assigned by the securities rating institutions authorized by the National Banking and Securities Commission to intermediaries for the celebration of operations with repurchase agreements, securities lending, Derivatives or bank deposits;

XIII.

Exchange Certificates, to the credit titles provided for in the Securities Market Law, which represent the individual participation of their holders in a collective credit owed by corporations, or by an estate affected in trust;

XIV.

Fiduciary Exchange Certificates of Investment Projects, to those referred to in article 1, of the general provisions applicable to securities issuers and other participants in the securities market, issued by the National Banking and Securities Commission, with their respective modifications and additions;

XV.

Exchange Certificates Linked to Real Projects, to titles whose source of payment comes from the use or benefit of real assets. The Exchange Certificates must meet the requirements established in the general provisions in financial matters of the Retirement Savings Systems issued by the Commission;

XVI.

Participation Certificates, to the Instruments referred to in Chapter V Bis of the General Law of Credit Titles and Operations;

XVII.

Commission, to the National Commission for the Retirement Savings System;

XVIII.

Risk Analysis Committee, to that provided for in article 45 of the Law;

XIX.

Investment Committee, to that provided for in article 42 of the Law;

XX.

Financial Risks Committee, to that provided for in article 42 bis of the Law;

XXI.

Valuation Committee, to that provided for in article 46 of the Law;

XXII.

Equity Components, to the Equity Instruments and Foreign Equity Securities with which exposure to authorized equity assets is obtained through Vehicles that confer rights on them, shares or Derivatives;

XXIII.

Counterparties, to the financial institutions with whom Investment Societies can carry out operations with Derivatives, repurchase and securities lending, in terms of the Provisions of the Bank of Mexico, as well as those in which they carry out bank deposits of money on demand;

XXIV.

Open Contracts, to the operations carried out with Derivatives regarding which no operation of a contrary nature has been carried out with the same Counterparty;

XXV.

Custodian, to the financial intermediary that receives instruments or securities for safekeeping, or to the institutions authorized for the foregoing purposes;

XXVI.

Derivatives, to the Forward Operations, Option Operations, and Swap Contracts, including Forward Operations on Swap Contracts, Option Operations on Forward Operations and Option Operations on Swap Contracts (Options on Swaps), to which the Provisions of the Bank of Mexico refer;

XXVII.

Differential of Conditional Value at Risk, to the difference in the Conditional Value at Risk of the portfolio of an Investment Society and the Conditional Value at Risk of that same portfolio calculated excluding positions in Derivatives in accordance with sections I and III of Annex L of these provisions;

XXVIII.

Provisions of the Bank of Mexico, to those directed at specialized investment societies of retirement funds in matters of financial operations known as derivatives, repurchase and securities lending, issued by the Central Bank;

XXIX.

Currencies, to the United States of America dollars, euros, yen, the currencies of the Eligible Countries for Investments that the Risk Analysis Committee determines, considering the security of the investments and the development of the markets, as well as other elements that said collegiate body judges it necessary to analyze;

XXX.

Private Companies, to the commercial companies of Mexican nationality authorized to issue securities, as well as to the Financial Entities;

XXXa.

State Productive Companies, to the companies of exclusive ownership of the Federal Government, with legal personality and own assets that enjoy technical, operational and management autonomy, in accordance with what is provided in the Mexican Petroleum Law and the Federal Electricity Commission Law, named Mexican Petroleum and Federal Electricity Commission;

XXXI.

National Issuers, to the Federal Government, Bank of Mexico, Private Companies, State Productive Companies, federative entities, municipalities, Government of the Federal District and Parastatal Entities, that issue Instruments, as well as Financial Entities, that issue, accept or guarantee said Instruments;

XXXII.

Foreign Issuers, to the Governments, Central Banks and Government Agencies of Eligible Countries for Investments, as well as the entities that issue securities under the regulation and supervision of these and the multilateral organizations other than those indicated in fraction LIV of this provision;

XXXIII.

Financial Entities, to those authorized in accordance with Mexican financial legislation to act as: general warehouses, Credit Institutions, guarantee institutions, insurance companies and multiple-purpose financial societies;

XXXIV.

Structures Linked to Underlyings, to assets that meet the following characteristics:

a)

Be offered through a public offering mechanism in some Eligible Country for Investments;

b)

Have a payment structure of flows to investors integrated by the following two components:

i.

A non-subordinated zero-coupon bond, or in its case, a payment with a financial structure similar to it, through which the invested amount is returned to the investor on the maturity date of the title. This component may be denominated in pesos, Investment Units or Currencies and may be issued by National or Foreign Issuers.

ii.

The payment of coupons, whose value is linked to Currencies, Investment Units, pesos, real or nominal interest rates, the national consumer price index, Commodities, Equity Components, FIBRAS or a combination of the foregoing. The value of the coupons in no case can be negative. Said value may be determined through authorized Derivatives.

c)

In its case, the payment structure of flows to the investor may offer an undefined maturity, to one hundred years or to a term greater than this;

d)

Have the credit ratings provided for in these provisions, and

e)

The instrument may require the investor only the contribution of the initial investment amount and must not require the latter to administer or contribute guarantees.

XXXV.

FIBRAS, to the Generic FIBRAS and to the FIBRAS-E;

XXXVI.

Generic FIBRAS, to the titles or securities issued by trusts dedicated to the acquisition or construction of real estate in national territory that are destined for leasing or to the acquisition of the right to receive income from the leasing of said assets, as well as to provide financing for those purposes, that comply with what is provided in articles 187 and 188 of the Income Tax Law;

XXXVII.

FIBRA-E, to the fiduciary exchange certificates of investment in energy and infrastructure referred to in article 1 of the general provisions applicable to securities issuers and other participants in the securities market, issued by the National Banking and Securities Commission, with their respective modifications and additions;

XXXVIII.

Mutual Funds, to national or foreign entities, that are registered, regulated and supervised by some authority belonging to the Eligible Countries for Investments that comply with the regulation of their country of origin, as well as with the following characteristics:

a)

The net value of their assets must be known daily through the mechanisms that for such purposes are established by the authorities of the Eligible Countries for Investments that regulate the fund in question;

b)

The liquidity and redemption of the shares or titles must be daily, or in accordance with the periodicity determined by the Risk Analysis Committee;

c)

Their administrators and/or investment advisors must be registered, regulated and supervised by some authority belonging to the Eligible Countries for Investments;

d)

They must have an investment prospectus in which they make public their investment policy and must periodically publish their financial situation, and

e)

The instruments in which they invest must be issued through public offering and observe the criteria applicable to Investment Assets determined in these provisions.

Mutual Funds can be National Mutual Funds or Foreign Mutual Funds.

The Risk Analysis Committee will determine the guidelines that these funds must comply with in order to protect the resources of workers invested in Investment Societies.

XXXIX.

Foreign Mutual Funds, to Mutual Funds composed of Foreign Debt Securities, Neutral Investments or Foreign Equity Securities;

XL.

National Mutual Funds, to Mutual Funds composed of Debt Instruments, Neutral Investments or Equity Instruments;

XLI.

Investment Grade, to that obtained by Debt Instruments and Foreign Debt Securities denominated in national currency, Investment Units or Currencies that hold the ratings related in Annexes A, B, C, D, E, F, G, H, I, J and K of these provisions;

XLII.

Financial Groups, to those constituted in terms of the Law to Regulate Financial Groupings;

XLIII.

Equity Indices of Eligible Countries for Investments, to equity indicators that satisfy the requirements established by the Risk Analysis Committee;

XLIV.

Real Estate Indices of Eligible Countries for Investments, to real estate indicators that satisfy the requirements established by the Risk Analysis Committee;

XLV.

Debt Indices of Eligible Countries for Investments, to debt indicators that satisfy the requirements established by the Risk Analysis Committee;

XLVI.

Credit Institutions, to national multiple banking and development banking institutions;

XLVII.

Instruments, to all Instrumentalized Instruments, Debt Instruments, Structured Instruments, FIBRAS and Equity Instruments denominated in national currency, Investment Units or Currencies issued by National Issuers, including Exchange Certificates and Participation Certificates, acquired directly or through Vehicles, the debt documents owed by the Federal Government, the deposits in the Bank of Mexico, the bank deposits of money on demand made in Credit Institutions, the Structures Linked to Underlyings, or in their case, the components of these, issued by National Issuers, as well as Commodities;

XLVIII.

Instrumentalized Instruments, to the following:

a)

Titles or securities that represent credit rights issued through Vehicles whose underlying assets are said credit rights, not including any other instrument different from those mentioned above, such as those known as Structured Instruments or any others that do not meet the requirements established in the general provisions in financial matters of the Retirement Savings Systems, nor meet the load levels, retained capital, subordinated series and financial guarantee determined by the Risk Analysis Committee, to which articles 43 fourth paragraph and 45 of the Law refer, and

b)

Exchange Certificates Linked to Real Projects;

XLIX.

Debt Instruments, to the following:

a)

Investment Assets, whose nature corresponds to securities, titles or documents representing a debt owed by a third party, placed in national or foreign markets, issued by National Issuers, as well as to Instrumentalized Instruments and deposits in the Bank of Mexico;

b)

The obligations convertible into shares of Public Limited Companies, distinct from Equity Instruments;

c)

The non-convertible subordinated obligations issued by Credit Institutions referred to in article 64 of the Law of Credit Institutions;

d)

The non-convertible subordinated obligations that meet the following requirements:

i.

That they have as their object to finance infrastructure projects in national territory;

ii.

That in none of the tranches or series in which they are structured are additional contributions established charged to the holders;

iii.

That without prejudice to the order of precedence established between said tranches or series, in no case is the issuer released from the obligation to pay the principal, even if said principal can be deferred or amortized in advance, and

iv.

That in the case that they are issued through a Vehicle, this does not confer rights directly or indirectly, with respect to Derivatives or imply structures subject to financing.

e)

Non-convertible subordinated obligations in shares.

The series contemplated in the issuance of a financial instrument that, in any event other than liquidation or commercial bankruptcy, grants differentiated collection precedence rights to the holders of said series, whatever their denomination, are excepted from those included in this clause. In particular, the subordinated or mezzanine series of Instrumentalized Instruments are not contemplated in the present definition.

Likewise, the different obligations and series of shares issued by a specialized anonymous society in the investment of financial resources are excluded from this clause.

f)

Hybrid Debt Instruments.

The obligations referred to in clauses b), c), d), e) and f) above must reach the minimum ratings determined by the Risk Analysis Committee. In any case, the ratings must be granted by at least two securities rating institutions authorized by the National Banking and Securities Commission.

The Debt Instruments issued under the Securities Market Law and the general provisions applicable to securities issuers and other participants in the securities market, issued by the National Banking and Securities Commission, whose resources are destined to the financing of housing projects, whose source of payment comes directly or indirectly from mortgage credits, will be considered as unsecured debt titles or Instrumentalized Instruments.

L.

Hybrid Debt Instruments, to the titles or securities that represent a debt owed by a third party, placed in national or foreign markets that according to their issuance prospectus meet the following characteristics:

a)

That the payment precedence is preferential with respect to the payment of dividends or capital distributions;

b)

That the amount of coupon payment may be variable or accumulative, as well as the date of coupon payment may be deferrable;

c)

That the date of principal payment may have the optionality for the issuer to make it advance, deferrable or indefinite;

d)

That they satisfy the credit rating requirements provided for in these provisions;

e)

That they be issued by Private Companies other than Credit Institutions;

f)

That the maturity date be fixed, deferrable or perpetual, and

g)

That the Issuer has listed shares representing its capital in some securities exchange of Eligible Countries for Investments;

LI.

Structured Instruments, to the following:

a)

The fiduciary titles that are destined to the investment or financing of the activities or projects within the national territory, of one or more societies, including those that invest or finance the acquisition of share capital of Mexican societies whose shares are quoted on a Securities Exchange authorized to organize and operate in terms of the Securities Market Law, except those regulated by the Investment Funds Law.

The cash that forms part of the equity of the issuer trust of the Structured Instruments, while the selection of the activities or projects in which said resources will be destined is carried out, may be invested temporarily, in societies and investment funds regulated under the Investment Funds Law or in Vehicles listed in the Mexican capital market. The Risk Analysis Committee will determine the types of financial assets in which said societies, investment funds and Vehicles may invest, and

b)

The Fiduciary Exchange Certificates of Investment Projects.

The Structured Instruments must be issued under the Securities Market Law and the general provisions applicable to securities issuers and other participants in the securities market issued by the National Banking and Securities Commission.

Additionally, the Structured Instruments must meet the requirements that, in their case, are established in the general provisions in financial matters of the Retirement Savings Systems issued by the Commission.

Regarding the investment in Structured Instruments carried out by the Mandatories, the Risk Analysis Committee will define the criteria that Mandatories must satisfy to be eligible and in their case the Structured Instruments in which they may invest.

LII.

Equity Instruments, to the following:

a)

Shares destined for individual investment or through Equity Indices of Eligible Countries for Investments, of National Issuers listed on a Securities Exchange authorized to organize and operate in terms of the Securities Market Law;

b)

The shares of National Issuers, or the titles that represent them, that are the object of an initial public offering, total or partial, on a Securities Exchange authorized to organize and operate in terms of the Securities Market Law, or in it together with other securities exchanges, and

c)

Obligations forcibly convertible into shares of Public Limited Companies of National Issuers.

d)

The optional titles attached to shares representing the share capital of a Private Company that are the object of an initial public offering, total or partial, that have as underlying shares representing the share capital of the same Private Company.

LIII.

Mandatory Investments of the Administrators, to the special reserve and to the portion of its paid minimum capital that the Administrators must invest in shares of the Investment Societies they administer in accordance with what is provided by articles 27 fraction II and 28 of the Law;

LIV.

Neutral Investment, to that carried out by Investment Societies in Instruments issued, under the regulation and supervision of authorities that belong to the Eligible Countries for Investments, by international multilateral financial organizations of which the United Mexican States is a part, which will be considered within National Issuers;

LV.

Law, to the Law of the Retirement Savings Systems;

LVI.

Mandataries, to the specialized legal entities in the investment of financial resources supervised and regulated by authorities of the Eligible Countries for Investments with whom the Investment Societies have celebrated intermediation contracts in which they grant

an investment mandate whose exercise is subject to the guidelines determined by the Contracting Investment Society;

LVII.

Best Practices, the guidelines to control and minimize the operational risk of Investment Societies, arising from operations with Investment Assets, as well as from the handling of cash and securities in buy-sell, registration, administration, and custody operations of securities in national and foreign financial markets, which Administrators must adopt and incorporate into their self-regulation programs;

LVIII.

Commodities, the physical exposure to gold, silver, or platinum through Vehicles authorized by the Risk Analysis Committee, as well as the underlying assets stated in the Provisions of the Bank of Mexico regarding derivative operations, which have the character of fungible goods other than shares, price indices on shares, rates, national currency, Foreign Exchange, Investment Units, loans, and credits;

LIX.

Patrimonial Link, the one that exists between an Administrator and the Investment Societies it operates with the following natural or legal persons:

a)

Those that participate in its share capital;

b)

In their case, the other Financial Entities and brokerage houses that are part of the Financial Group to which the Administrator in question belongs;

c)

In their case, Financial Entities and brokerage houses that have a patrimonial relationship with Financial Entities that are part of the Financial Group to which the Administrator itself belongs, and

d)

In their case, Financial Entities and brokerage houses that, directly or indirectly, have a patrimonial relationship with the Financial Entity or brokerage house that participates in the share capital of the Administrator in question.

LX.

Eligible Countries for Investments, countries whose regulatory and supervisory authorities of financial markets belong to the Committee on the Global Financial System (CGFS) of the Bank for International Settlements (BIS); countries members of the Pacific Alliance (PA) with full rights whose stock exchanges belong to the Latin American Integrated Market (MILA); the European Union; or countries members of the Organization for Economic Cooperation and Development (OECD) with which Mexico has valid free trade treaties, and other countries determined considering the security of investments and the development of markets, each referred to in Annex P of these provisions. The Risk Analysis Committee, considering the security of investments and the development of markets, as well as other elements that this collegiate body deems necessary to analyze, may determine that a country ceases to be considered an Eligible Country for Investments for the purposes of these provisions;

LXI.

Price Provider, legal entities authorized by the National Banking and Securities Commission in terms of the provisions applicable to Price Providers, as well as legal entities specialized in the valuation of Foreign Securities, authorized for such purposes by the corresponding authorities of Eligible Countries for Investments, hired by Custodians for operations in international markets;

LXII.

Investment Societies, specialized investment societies of retirement fund vehicles;

LXIII.

Additional Investment Societies, Investment Societies whose purpose is the exclusive investment of Voluntary Contributions, Voluntary Contributions with Long-Term Investment Perspective, Complementary Retirement Contributions, Long-Term Savings Contributions, or social welfare funds;

LXIV.

Mutually Related Societies, commercial societies that form a set or group, in which, due to their patrimonial or liability links, the financial situation of one or several of them may decisively influence that of the others, or when the administration of said legal entities depends directly or indirectly on the same person;

LXV.

Valuation Society, legal entities independent of Investment Societies, and limited operating societies of investment funds, authorized by the National Banking and Securities Commission to provide valuation services for the shares of Investment Societies, as well as Custodians authorized by the corresponding authorities of Eligible Countries for Investments to carry out operations in international markets;

LXVI.

Retirement Insurance Sub-account, the one provided for in Chapter V bis of Title Second of the Social Security Law in force until July 1, 1997, which is integrated with the contributions corresponding to Retirement Insurance made during the period from the second bimester of 1992 to the third bimester of 1997 and the returns they generate;

LXVII.

Retirement Savings Sub-account, the one provided for in article 90 BIS-C of the Law of the Institute for Social Security and Services for State Workers in force until March 31, 2007, which is integrated with contributions made under the retirement savings system in force from the first bimester of 1992, until March 31, 2007, and the returns they generate;

LXVIII.

Solidarity Savings Sub-account, the one provided for in article 100 of the Law of the Institute for Social Security and Services for State Workers, whose resources are subject to the norms applicable to the RCV ISSSTE Sub-account;

LXIX.

RCV IMSS Sub-account, the retirement, old-age, and disability sub-account referred to in fraction I of article 159 of the Social Security Law;

LXX.

RCV ISSSTE Sub-account, the retirement, old-age, and disability sub-account referred to in article 76 of the Law of the Institute for Social Security and Services for State Workers;

LXXI.

Workers, the workers who are holders of an individual account referred to in articles 74, 74 bis, 74 ter, and 74 quinquies of the Law;

LXXII.

Investment Units, the accounting units whose value is published by the Bank of Mexico in the Official Journal of the Federation, in accordance with articles third of the Decree by which obligations that may be denominated in Investment Units are established and reform and add various provisions of the Federal Tax Code and the Income Tax Law, published in the Official Journal of the Federation on April 1, 1995, and 20 ter of the Federal Tax Code;

LXXIII.

Compensated Value, that which results from subtracting from the market value of Open Contracts, the market value of guarantees received to ensure the fulfillment of operations with Derivatives that Investment Societies enter into;

LXXIV.

Value at Risk, the depreciation or loss that the Asset Managed by the Investment Society may have, given a certain level of confidence, in a determined period;

LXXV.

Conditional Value at Risk, the simple average of the depreciation or losses of the Asset Managed by the Investment Society, conditioned to exceed the Value at Risk corresponding to the given level of confidence, in a determined period, in accordance with section III, numeral 1 of Annex L of these provisions;

LXXVI.

Foreign Securities, all Foreign Debt Securities and Foreign Equity Securities, Structures Linked to Underlyings, the components thereof referred to in provision Second fraction XXXIV, issued by Foreign Issuers, Real Estate Investment Vehicles, acquired directly or through Vehicles, as well as demand money bank deposits made in foreign financial entities authorized for such purposes, and Derivatives whose underlying is Foreign Equity Securities;

LXXVII.

Foreign Debt Securities, Investment Assets, whose nature corresponds to securities, titles, or documents representing a debt owed by a third party, acquired directly or through Vehicles, as well as Securitized Instruments, issued by Foreign Issuers;

LXXVIII.

Foreign Equity Securities, Investment Assets listed in some stock market provided for in these provisions, supervised by an authority of Eligible Countries for Investments, whose nature corresponds to capital, issued by Foreign Issuers, acquired directly or through Vehicles;

LXXIX.

Vehicles, investment societies or funds, Mutual Funds, investment trusts, or others analogous to the aforementioned that, whatever their denomination, confer rights, directly or indirectly, regarding Investment Assets, and

LXXX.

Real Estate Investment Vehicles, securities, other than FIBRAS, listed in markets of Eligible Countries for Investments, issued by trusts, companies, or mechanisms authorized for such purposes in the corresponding jurisdiction, referred to in some of said jurisdictions as Real Estate Investment Trust or REITs, which are dedicated to the acquisition or construction of real estate properties intended for lease or to the acquisition of the right to receive income from the lease of said properties, as well as to providing financing for those purposes.

THIRD.- Investment Societies may enter into repo and securities lending operations with Counterparties on the Instruments, except Structured Instruments, Commodities, Structures Linked to Underlyings, and on Foreign Securities that make up their assets, acting as lenders or lenders of securities, respectively, in accordance with what is provided in the Law and in the Provisions of the Bank of Mexico.

Section II

Of Credit Quality

FOURTH.- Debt Instruments denominated in national currency and Investment Units that Investment Societies acquire must reach the minimum ratings established in Annexes A, B, C, D, or E of these provisions. Regarding Debt Instruments denominated in Foreign Exchange, placed in national or foreign markets, they must reach the minimum ratings established in Annexes F, G, H, or I of these provisions. The foregoing is not applicable to Debt Instruments issued or guaranteed by the Federal Government nor to those issued by the Bank of Mexico.

Neutral Investment must reach the ratings established in Annexes A, J, or K of these provisions, as applicable, and Foreign Debt Securities must reach the minimum ratings established in Annex J or K of these provisions, as applicable. Without prejudice to the foregoing, Investment Societies may acquire Debt Instruments that hold the ratings determined by the Risk Analysis Committee.

In the case of Structures Linked to Underlyings issued in Mexico under the regulation of the National Banking and Securities Commission, the credit quality requirements defined in this provision will be applicable to the issuer of the instrument in question or, in its case, to the issuer of the zero-coupon bond or the payment structure, referred to in provision Second fraction XXXIV subclauses b) or c) and to the Investor Counterparty with the Derivatives associated with the structure.

In the case of Structures Linked to Underlyings issued abroad, the credit quality requirements defined in these provisions will be applicable to them.

Structures Linked to Underlyings issued by Foreign Issuers, Foreign Issuers, and Foreign Counterparties of the components linked to these referred to in provision Second fraction XXXIV subclauses b) and c), must reach the minimum ratings established in Annex J or K of these provisions, as applicable.

National Issuers and National Counterparties of the components of Structures Linked to Underlyings referred to in provision Second fraction XXXIV subclauses b) and c), must reach the minimum ratings established in Annexes A, B, C, or D of these provisions. When the aforementioned components of the structures are denominated in Foreign Exchange, placed in national or foreign markets, the National Issuers and National Counterparties referred to in this paragraph must reach the minimum ratings established in Annexes F, G, or H of these provisions.

The mentioned ratings must be granted by at least two authorized securities rating institutions, and all ratings with which a Debt Instrument, Foreign Debt Security, in its case, the issuances of Structures Linked to Underlyings or the issuers of said structures, must be public. When the ratings of the same Debt Instrument or Foreign Debt Security correspond to different Annexes, said Debt Instrument or Foreign Debt Security will be subject, for the purposes of these provisions, to the lowest rating it holds.

Without prejudice to the foregoing, regarding National Issuers that issue Debt Instruments denominated in Foreign Exchange, placed in national or foreign markets, which in turn have ratings established in Annexes A to I, these ratings may be considered for the purposes of computing the lowest rating referred to in the previous paragraph.

The rating requirements provided for in this provision will be applicable to the Counterparties of demand money bank deposits.

FIFTH.- National Counterparties with which Investment Societies enter into repo, securities lending, or Derivative operations, or Credit Institutions in which said Investment Societies make bank deposits, must have the minimum Counterparty Ratings established in Annexes A, B, C, or D, of these provisions. In the case of Foreign Counterparties, they must have the minimum Counterparty Ratings established in Annex J or K of these provisions. The foregoing, without prejudice to complying with the Provisions of the Bank of Mexico.

The Ratings with which a Counterparty holds must be public and granted by at least two authorized securities rating institutions. When a Counterparty has Counterparty Ratings that correspond to different grades, said Counterparty will be subject, for the purposes of these provisions, to the lowest Counterparty Rating it holds.

SIXTH.- In the event that authorized securities rating institutions modify the denomination of their ratings or authorized securities rating institutions not provided for in the aforementioned Annexes are authorized by the competent authority, the Risk Analysis Committee must analyze the new rating scales and determine the modifications that must be made to the aforementioned Annexes. Likewise, the Risk Analysis Committee may determine the equivalence of the ratings granted by the different authorized securities rating institutions. The Commission will publish in the Official Journal of the Federation the update of the Annexes determined by the Risk Analysis Committee and inform the Consultative and Surveillance Committee and the Board of Directors of the Commission of the modification in the first session that these bodies hold subsequent to the publication.

SEVENTH.- In the event that some of the Debt Instruments or Foreign Debt Securities that make up the portfolio of an Investment Society, or the Counterparty with which an Investment Society enters into repo, securities lending, or Derivative operations, or in which it makes bank deposits, the Structures Linked to Underlyings, in their case, the issuers and the Counterparties linked to the components of said structures, suffer changes in their rating that cause them to cease to comply with what is stated in the previous Fourth and Fifth provisions, the Investment Society must be subject to what is provided in the general provisions in financial matters of the Retirement Savings Systems regarding the recomposition of portfolios of Investment Societies, issued by the Commission.

EIGHTH.- Investment Societies may only enter into Derivative, repo, and securities lending operations, or invest in Structures Linked to Underlyings in which the value is determined through Derivatives, with Counterparties.

Section III

Of Vehicles

NINTH.- The Risk Analysis Committee will determine the criteria to authorize Vehicles, Equity Indices of Eligible Countries for Investments, Real Estate Indices of Eligible Countries for Investments, and Debt Indices of Eligible Countries for Investments that may be the object of investment by Investment Societies, always ensuring the protection of the interests of Workers.

Administrators may provide evidence of compliance with the requirements referred to in the previous paragraph by having the opinion of an independent expert, provided that this expert satisfies the requirements provided for in the general provisions in financial matters of the Retirement Savings Systems issued by the Commission. Likewise, Administrators, and in their case, those whom they authorize, must report to the Commission with the frequency established in the general provisions in financial matters of the Retirement Savings Systems and the general rules to which the information that retirement fund administrators, specialized investment societies of retirement fund vehicles, receiving entities, and companies operating the National SAR Database must be subject, deliver to the National Commission of the Retirement Savings System, the information of the opinions, indices, and Vehicles referred to in this provision.

The Commission, and in their case, those whom Administrators authorize, may make public the list of indices and Vehicles in accordance with the criteria issued by the Risk Analysis Committee in accordance with what is provided in this provision.

Section IV

Compliance with the Investment Regime and the Prospectus

TENTH.- Each Investment Society will determine the investment regime with which it will operate in accordance with the limits provided for in these provisions, which will be made known in the respective information prospectus. The investment regime provided for in said prospectus must be observed daily by the same.

The Investment Committee of each Investment Society will select the Investment Assets that will be acquired and sold by it in accordance with the investment regime provided for in these provisions and in the information prospectus of each Investment Society, observing the limits and parameters established by its Financial Risk Committee. In the operation of the investment regime, Investment Societies must observe Best Practices.

Investment Societies will make known in the information prospectus a general description of the investment activities that, in their case, they will carry out on behalf of Mandatories that have been contracted.

Investment Societies must define in the contracts they enter into with Mandatories the investment rules to which Mandatories will be subject, which must observe the limits, parameters, and criteria established in these provisions and must be determined in accordance with the general provisions in financial matters of the Retirement Savings Systems issued by the Commission. Investment Societies must provide in the cited contracts that Mandatories adhere to what is established in the general rules to which the information that retirement fund administrators, specialized investment societies of retirement fund vehicles, receiving entities, and companies operating the National SAR Database must be subject, deliver to the National Commission of the Retirement Savings System.

Basic Investment Societies, with the exception of Basic Pension Investment Societies, must define a reference portfolio, in accordance with the characteristics of each Investment Society, which must specify the class of Investment Assets, of Foreign Exchange, liquidity, rebalancing rules, governance, the maximum allowed deviation of the investment portfolio with respect to said portfolio, and the information that will be revealed to the public, as well as with the other obligations established in the general provisions in financial matters of the Retirement Savings Systems issued by the Commission.

Basic Investment Societies may update their reference portfolios whenever at least one year has elapsed since their definition, counted from the non-objection of the Commission. To update the aforementioned portfolios with greater frequency, Basic Investment Societies must inform the Commission prior to the update, attaching the drafts of the investment manuals and of policies and procedures for the control of financial risks that incorporate the corresponding adjustments.

ELEVENTH.- When Investment Societies fail to comply with the authorized investment regime due to causes attributable to them or, in their case, to the Mandatories they have contracted, or due to inflows or outflows of resources, and as a consequence thereof, a depreciation or loss is caused in the Total Asset of the Investment Society, in the Asset Managed by the Investment Society, or in the Asset Managed by the Mandatory that it has contracted and/or in some Investment Asset, the Administrator that operates the Investment Society in question must compensate for the depreciation in accordance with the formula provided for in Annex O of these provisions.

Non-compliance with the authorized investment regime attributable to Investment Societies or, in their case, to the Mandatories they have contracted, will not be considered those causes provided for in the general provisions in financial matters of the Retirement Savings Systems regarding portfolio recomposition, issued by the Commission where it is so stated.

Nor will non-compliance with the authorized investment regime attributable to Investment Societies be considered those originated by investments in Vehicles or replication of Indices

Shareholders of Eligible Countries for Investments, Real Estate Indices of Eligible Countries for Investments or Debt Indices of Eligible Countries for Investments, which have been assessed by the independent expert provided for in the Ninth Provision of these provisions and which have a current favorable opinion regarding compliance with the criteria determined by the Risk Analysis Committee to authorize the Vehicles, the Shareholder Indices of Eligible Countries for Investments, the Real Estate Indices of Eligible Countries for Investments and the Debt Indices of Eligible Countries for Investments that may be the subject of investment by the Investment Societies.

For the purposes of the last paragraph of Article 44 of the Law, there will be deemed to be depreciation in the Total Asset Managed by the Investment Society when the price of the share of the Investment Society at the close of a day (PS 1) is lower than the price corresponding to said share on the previous business day (PS 0). There will be deemed to be depreciation in the Asset Managed by the Investment Society when the market value of the portfolio directly managed by the Investment Society at the close of a day, adjusted for inflows and outflows of resources, is lower than the value corresponding to said valuation on the previous business day.

There will be deemed to be depreciation in the Asset Managed by the Mandatee in question, when the market value of the portfolio directly managed by it at the close of a day, adjusted for inflows and outflows of resources, is lower than the value corresponding to said valuation on the previous business day. The Commission will establish through general provisions in financial matters the criteria applicable to Investment Societies to verify compliance with these provisions, either by them or by the Mandatees they hire.

There will be deemed to be depreciation in an Investment Asset when the price of said asset at the close of a day (PA 1) is lower than the price corresponding to that asset on the previous business day or, as applicable, the acquisition price, (PA 0). The foregoing shall apply to the assets that make up the Vehicles and Real Estate Investment Vehicles in which the Investment Society invests. Regarding Investment Assets managed by Mandatees, the aforementioned periodicity shall be subject to what is established in the general provisions in financial matters issued by the Commission.

To determine which Investment Asset or set of Investment Assets cause non-compliance with the authorized investment regime, those Investment Assets that have been traded on the day of non-compliance shall be taken into account, or in the case of investments made in FIBRAS or Structured Instruments, directly by the Investment Society or through Mandatees, the investments made in the projects that fail to comply with what is provided in the Sixteenth Provision, fraction I, subsection f), and subsection g), respectively, and other provisions applicable to FIBRAS or Structured Instruments, respectively.

Regarding the minimum limits referred to in the following Fifteenth Provision, the applicable selling price will be used to determine that there is depreciation. In this case, a loss to the Investment Society caused by non-compliance with regulatory limits will be considered to have occurred when it maintains a deficit with respect to said limits and the closing price of the traded asset is higher than the valuation price of the date corresponding to the periodicity established in the general provisions in financial matters issued by the Commission, or as applicable, the selling price.

The acquisition or selling prices referred to in this provision shall be determined in accordance with the criteria established by the Valuation Committee and the criteria described in the general provisions in financial matters of the Retirement Savings Systems issued by the Commission.

The amounts of depreciation caused to the Total Asset of the Investment Society, to the Asset Managed by the Investment Society, or as applicable, to the Asset Managed by the Mandatee, and the amounts of depreciation of an Investment Asset with which the authorized investment regime is not complied with, shall be determined in accordance with the procedure provided for in this provision and in Annex O of these provisions.

The depreciation shall be covered by the Administrator operating the Investment Society from the special reserve constituted in the terms provided for in the Law and, in case this proves insufficient, it must do so from its share capital.

TWELFTH.- In order to compensate for the depreciation referred to in the previous provision, Administrators must cancel from their position the number of variable capital shares resulting from dividing the amount of depreciation by the valuation price of the share of the Investment Society in question in accordance with what is provided in the general provisions in financial matters of the Retirement Savings Systems regarding portfolio reconstruction of Investment Societies, issued by the Commission. This is without prejudice to their obligation to reconstitute the special reserve and, as applicable, the share capital in accordance with what is provided by the Law.

CHAPTER II

OF THE INVESTMENT REGIME OF INVESTMENT SOCIETIES

Section I

Of Basic Investment Societies

THIRTEENTH.- Administrators must jointly invest the resources of the RCV IMSS Subaccount, the RCV ISSSTE Subaccount and, as applicable, the Solidarity Savings Subaccount, the Retirement Insurance Subaccount and the Retirement Savings Subaccount, in the corresponding Basic Investment Society according to the following:

I.

The Pension Basic Investment Society must invest the resources of:

a)

Workers who are 60 years of age or older, who, considering the information from their contribution period, do not have the right to the pension scheme established in the Social Security Law published in the Official Gazette of the Federation on March 12, 1973 or to the pension regime provided for in the Law of the Institute of Security and Social Services for State Workers published in said Gazette on December 27, 1983 with its reforms and additions;

b)

Workers who are 60 years of age or older who are not in a service-providing administrator in terms of the Law and who, considering the information from their contribution period:

i.

Do not have the right to a pension for old age or old age according to the Social Security Law or the Law of the Institute of Security and Social Services for State Workers, or

ii.

Are not within the period of conservation of rights provided for in the Social Security Law;

c)

Workers with redeemed pension bonuses who are 63 years of age or older and who have the right to a pension for old age or old age according to the Law of the Institute of Security and Social Services for State Workers;

d)

At the request of Workers:

i.

The Retirement Insurance Subaccount of Workers who are 60 years of age or older with the right to a pension for old age or old age according to the Social Security Law promulgated in 1973, and

ii.

The Retirement Savings Subaccount of Workers who are 60 years of age or older with the right to a pension for old age or old age according to the Law of the Institute of Security and Social Services for State Workers promulgated in 1983.

The foregoing, in accordance with the guidelines that the Commission establishes, taking into account the studies carried out to protect the resources of Workers.

II.

Basic Investment Society 1 must invest the resources of Workers who are 60 years of age or older who do not correspond to invest their resources in the Pension Basic Investment Society and the resources of pensioners under the modalities of programmed withdrawals;

III.

Basic Investment Society 2 must invest the resources of Workers who are between 46 and 59 years of age;

IV.

Basic Investment Society 3 must invest the resources of Workers who are between 37 and 45 years of age, and

V.

Basic Investment Society 4 must invest the resources of Workers who are 36 or fewer years of age.

FOURTEENTH.- Without prejudice to what is provided in the previous provision, Workers may request at any time the transfer of their resources from one Basic Investment Society to another of their choice other than the one corresponding to them by age, in terms of what is provided in the general provisions in matters of operations of the retirement savings systems.

Workers who have invested the resources of their individual account in accordance with what is provided in the previous paragraph may decide that the investment of their resources be made in the Investment Society corresponding to them by age. For Workers to exercise the rights provided for in this paragraph, they must be subject to what is established in the general provisions in matters of operations of the retirement savings systems.

Section II

Permitted and Prohibited Instruments and Operations

FIFTEENTH.- Basic Investment Societies 1 shall maintain at least 51% of the Total Asset of the Investment Society in Debt Instruments or Foreign Debt Securities that are denominated in Investment Units or national currency, whose interest guarantees a yield equal to or greater than the variation of the Investment Unit or the national consumer price index.

Within the limit referred to in this provision, the market value of Open Contracts with Derivatives that Investment Societies enter into with underlying in Investment Units or referred to the national consumer price index shall be counted.

Exposure to Derivatives whose underlying assets are denominated in Investment Units or whose interest guarantees a yield equal to or greater than the Investment Unit or the national consumer price index shall be counted in accordance with the general provisions in financial matters of the Retirement Savings Systems issued by the Commission.

SIXTEENTH.- Basic Investment Societies may invest in the following:

I.

Basic Investment Societies 1 to 4:

a)

Up to 100% of the Total Asset of the Investment Society in:

i.

Debt Instruments issued or guaranteed by the Federal Government, or in Debt Instruments issued by the Bank of Mexico. The investment referred to in this paragraph does not include Debt Instruments issued, guaranteed or accepted by development banking institutions, unless in these the guarantee of the Federal Government is expressly stated, and

ii.

Debt Instruments that have Investment Grade in accordance with Annexes A to I of these provisions.

b)

In demand money deposits in Banks;

c)

In operations authorized to guarantee Derivatives referred to in the Provisions of the Bank of Mexico. Regarding foreign Counterparties, Investment Societies that carry out the operations referred to in this subsection must previously demonstrate to the Commission compliance with the requirements established for this purpose in the general provisions in financial matters of the Retirement Savings Systems when such Counterparties hold the qualifications referred to in Annex K of these provisions.

For the purposes of what is established in subsections b) and c) above, the diversification criteria established in the Twenty-Fourth Provision of these provisions and the prudential provisions established in the general provisions in financial matters of the Retirement Savings Systems shall apply.

d)

Up to 20% of the Total Asset of the Investment Society, in Foreign Securities and Fiduciary Stock Certificates of Investment Projects that are destined to the investment or financing of activities or projects outside the national territory. Investments in Foreign Debt Securities and foreign Counterparties must have Investment Grade in accordance with Annexes J or K of these provisions.

For the purposes of what is established in this subsection, the general provisions in financial matters of the Retirement Savings Systems issued by the Commission shall apply, and

e)

In Equity Components. The sum of the exposure or as applicable market value of investments in Equity Components must be:

i.

Up to 10% of the Total Asset of the Investment Society, to the shareholder underlyings authorized for Basic Investment Societies 1;

ii.

Up to 30% of the Total Asset of the Investment Society, to the shareholder underlyings authorized for Basic Investment Societies 2;

iii.

Up to 35% of the Total Asset of the Investment Society, to the shareholder underlyings authorized for Basic Investment Societies 3, and

iv.

Up to 45% of the Total Asset of the Investment Society, to the shareholder underlyings authorized for Basic Investment Societies 4.

For the purposes of what is established in subsection e) of this fraction, the provisions of Annex N of these provisions shall apply.

f)

In FIBRAS and Real Estate Investment Vehicles, in accordance with the following:

i.

Up to 5% of the Total Asset of the Investment Society, for Basic Investment Societies 1, and

ii.

Up to 10% of the Total Asset of the Investment Society, for Basic Investment Societies 2 to 4.

Regardless of the foregoing, Investment Societies must verify that they comply with the criteria established for this purpose by the Commission through the general provisions in financial matters of the Retirement Savings Systems.

Basic Investment Societies may only acquire exposure to Real Estate Investment Vehicles when these are part of Instruments whose values correspond to some index provided for in the provisions of Annex M of these provisions.

As an exception to what is provided in the previous paragraph, Mandatees may individually acquire Real Estate Investment Vehicles. Investment in said Vehicles through Mandatees may be up to the percentage of the Total Asset of the Investment Society determined by the Risk Analysis Committee, based on the development of the financial markets in question, a percentage that may not exceed the maximum limits provided for in subsection f) of this fraction.

For the purposes of what is established in subsection f) of this fraction, the provisions of Annex N of these provisions shall apply.

g)

In Structured Instruments, observing the diversification criteria provided for in fractions IV and V of the following Twenty-Fourth Provision. Investment may only be:

i.

Up to 10% of the Total Asset of the Investment Society, for Basic Investment Societies 1;

ii.

Up to 15% of the Total Asset of the Investment Society, for Basic Investment Societies 2, and

iii.

Up to 20% of the Total Asset of the Investment Society, for Basic Investment Societies 3 and 4.

Investment Societies may acquire Structured Instruments that invest or finance the acquisition of share capital of Mexican companies whose shares are quoted on a Stock Exchange authorized to organize and operate in terms of the Securities Market Law, provided that the latter had been subject to financing through a Structured Instrument prior to their listing in said capital market or when the companies subject to financing are eligible in accordance with the issuance prospectus of the Structured Instrument, in which case said Structured Instrument may not acquire more than 51% of the total share capital that has been subject to public offer in regulated markets by authorities of Eligible Countries for Investments. Investment in the Structured Instruments referred to in this paragraph must be subject to what is established in subsections i to iii of this subsection. Structured Instruments may not be acquired nor maintain exposure through Derivatives.

II.

Basic Investment Societies 2 to 4:

a)

In Commodities:

i.

Up to 5% of the Total Asset of the Investment Society, for Basic Investment Societies 2, and

ii.

Up to 10% of the Total Asset of the Investment Society, for Basic Investment Societies 3 and 4.

The Risk Analysis Committee will determine the criteria to authorize commodity indices that may be the subject of investment by Investment Societies, always safeguarding the protection of the interests of Workers.

Likewise, in the event that there are modifications in the denomination of authorized commodity indices, or if for their convenience it is intended to modify or include new commodity indices in the list of commodity indices published on the Commission's website, the Risk Analysis Committee must decide whether such modifications or additions are made and determine the changes that must be made in said list.

The Commission must make known the list of commodity indices it authorizes in accordance with the criteria issued by the Risk Analysis Committee in accordance with what is provided in the previous paragraph and inform the Consultative and Oversight Board and the Board of Directors of the Commission of the modifications and additions to the set of commodity indices at the first session these bodies hold subsequent to the publication.

b)

In Foreign Debt Securities that meet the minimum qualifications referred to in Annex K. Investment Societies that invest in the Foreign Debt Securities referred to in this subsection must previously demonstrate to the Commission compliance with the requirements established for this purpose in the general provisions in financial matters of the Retirement Savings Systems or, failing that, carry out the investment through Mandatees.

III.

Pension Basic Investment Societies may invest up to 100% of the Total Asset of the Investment Society solely in a combination of the following Investment Assets denominated in national currency or Investment Units:

a)

In demand money deposits denominated in national currency in Multiple Banking Institutions, classified with level I capitalization in accordance with what is provided in the general provisions applicable to Credit Institutions issued by the National Banking and Securities Commission; published in the statistical bulletin of multiple banking of the aforementioned National Banking and Securities Commission, and that comply with the liquidity requirements established by the Bank of Mexico and the National Banking and Securities Commission in accordance with what is provided in the general provisions referred to in article 96 Bis 1 of the Credit Institutions Law;

b)

Debt Instruments issued or guaranteed by the Federal Government, whose term to maturity is less than or equal to 1 year;

c)

Up to 25% of the Net Asset of the Investment Society in Debt Instruments, other than those issued by the Institute for the Protection of Bank Savings, issued or guaranteed by the Federal Government with a revisable rate whose term to maturity is greater than 1 year;

d)

Up to 25% of the Net Asset of the Investment Society in Debt Instruments issued by the Institute for the Protection of Bank Savings with a revisable rate whose term to maturity is greater than 1 year, and

e)

In repo and securities lending operations whose term to maturity is equal to or less than one year with Counterparties that meet the credit qualifications provided for in Annexes A, B and C of these provisions, in which they act respectively as repo lenders and lenders, in accordance with what is provided in the Law and in the Provisions of the Bank of Mexico.

Basic Investment Societies 1 to 4 may acquire the Investment Assets referred to in this provision and the Eighteenth Provision, directly, through Vehicles or as applicable Derivatives or Mandatees in accordance with the investment regime, unless otherwise specified in the subsections of this provision.

Pension Basic Investment Societies, for the acquisition of the Investment Assets referred to in fraction III of this provision, must be subject to the minimum liquidity parameters referred to in the Twenty-Sixth Provision of these provisions and may not acquire Investment Assets through Vehicles, Derivatives or Mandatees.

Investment Societies may invest in Investment Assets, in accordance with this chapter, in the forms of exposure mentioned above, once they comply with what is established in these provisions, as well as with the requirements and certifications established in the general provisions in financial matters of the Retirement Savings Systems.

For the purposes of this provision, the Commission, hearing the opinion of the Risk Analysis Committee, may prohibit the acquisition of Investment Assets when in its judgment they represent excessive risks for the portfolio of Investment Societies, in order to protect the interests of Workers.

SEVENTEENTH.- Basic Investment Societies 1 to 4 may acquire Investment Assets through Mandatees.

In the contracts that Investment Societies enter into with Mandatees, the following must be provided:

I.

That the Investment Society and the Mandatee must permanently observe all limits, parameters, diversification criteria and obligations established in these provisions, in the information prospectus of the Investment Society in question and in the general provisions in financial matters issued by the Commission. For these purposes, the

Administrator must establish in the contract it enters into with each Manager on behalf of the Investment Societies it operates, the parameters to which the respective Managers must adhere in accordance with the investment objectives of the Investment Society;

II.

That investments made in the name and on behalf of the Investment Societies be registered as investments on behalf of third parties, segregated from the assets of the entity contracting them;

III.

The obligation of the Manager not to carry out the operations subject to the contract with the Investment Society with entities with which any of the parties has a financial nexus or any conflict of interest;

IV.

That the valuation of the Investment Assets and the reporting of investment portfolios be carried out in accordance with the general financial provisions issued by the Commission;

V.

That Managers must report to the Investment Societies and to the Commission with the frequency established in the General Financial Provisions issued by the Commission, the prices applicable to determine, if applicable, the write-downs referred to in the Eleventh Provision of these provisions;

VI.

The obligation of the Manager to comply, for investments in Investment Assets subject to the contract in question, with the diversification criteria provided for in fraction IV of the Twenty-Fourth Provision;

VII.

That the costs generated by the administration of the mandate be considered as part of the commission charged by the Manager, with the exception of brokerage costs established in the general financial provisions of the Retirement Savings Systems, issued by the Commission, and

VIII.

Comply with the other requirements determined by the Risk Analysis Committee.

The model contracts to be entered into between the Investment Societies and the Managers, as well as with investment advisors in Structured Instruments, must be available to the Commission.

TENTH EIGHTEEN.- Investment in Marketized Instruments that satisfy the requirements established in the general financial provisions of the Retirement Savings Systems must observe the diversification criteria provided for in fractions I, III and IV of the following Twenty-Fourth Provision and obey the following limits:

I.

Up to 10% of the Total Asset of the Investment Society, for Basic 1 Investment Societies;

II.

Up to 15% of the Total Asset of the Investment Society, for Basic 2 Investment Societies;

III.

Up to 20% of the Total Asset of the Investment Society, for Basic 3 Investment Societies, and

IV.

Up to 30% of the Total Asset of the Investment Society, for Basic 4 Investment Societies.

TENTH NINETEEN.- Within the limits referred to in the Sixteenth Provision, the sum of the Compensated Values of Derivatives operations that Basic Investment Societies enter into in over-the-counter markets in accordance with the Bank of Mexico Provisions must be computed, provided that the Investment Society has the status of creditor with respect to said Compensated Values.

TWENTIETH.- Basic 1 to 4 Investment Societies may acquire Structures Linked to Underlyings. Basic 1 Investment Societies may not invest in these assets when they are linked to Commodities.

TWENTY-FIRST.- The following is prohibited for:

I.

Basic Investment Societies, the following:

a)

Acquiring Investment Assets issued, accepted or guaranteed by Financial Entities or brokerage houses that are subject to administrative or managerial intervention that has been declared by the competent supervisory authority of the financial system or equivalent acts ordered, if applicable, by some financial authority belonging to the Countries Eligible for Investments;

b)

Acquiring Debt Instruments, Foreign Debt Securities, FIBRAS, Real Estate Investment Vehicles issued, accepted or guaranteed by Financial Entities or brokerage houses with which they have Financial NEXUS, as well as investing in Mutual Funds administered by Financial Entities with which they have Financial NEXUS;

c)

Acquiring Subordinated Debt Instruments and Foreign Debt Securities, except for Basic 1 to 4 Investment Societies, when it comes to the subordinated obligations referred to in fraction XLIX letters c), d), e) and f), of the previous Second Provision;

d)

Acquiring shares, as well as Debt Instruments and Foreign Debt Securities, convertible into shares, except for Basic 1 to 4 Investment Societies, when it comes to the shares or obligations convertible into shares referred to in fractions XLIX, letter b) and LII, letters a), b) and c) of the previous Second Provision, or Foreign Variable Income Securities acquired through Managers;

e)

Acquiring Instruments and Foreign Securities that grant their holders rights or returns referred, directly or indirectly, to individual shares, to a set of shares, to variations in the price of commodities, assets, or instruments, that are not authorized within the investment regime of the corresponding Basic Investment Society;

f)

Making bank deposits and entering into repo operations, securities lending, and Derivatives with Financial Entities or brokerage houses with which they have Financial NEXUS;

g)

Acquiring Foreign Variable Income Securities, other than Variable Income Components.

For this purpose, the assets referred to in the penultimate paragraph of the previous Sixteenth Provision and Foreign Variable Income Securities acquired through Managers shall not be considered prohibited, and

h)

Acquiring FIBRAS, Real Estate Investment Vehicles or Exchange Certificates Linked to Real Projects in which the real estate or real assets that form part of the trust assets have been contributed by Private Companies, financial institutions or brokerage houses, with which they have Financial NEXUS.

Section III

Risk Parameters

TWENTY-SECOND.- Basic Pension Investment Societies and Basic 1 Investment Societies must maintain a maximum Value at Risk limit of 0.70% of the Assets Managed by said Investment Societies.

For the calculation of Value at Risk, Basic Pension Investment Societies and Basic 1 Investment Societies must adhere to the methodology provided for in sections I and II of Annex L of these provisions.

Basic Pension Investment Societies and Basic 1 Investment Societies, in their operation, will determine the Value at Risk limit for the Assets Managed by the Investment Societies, which will not exceed the maximum limit established in the first paragraph of this provision. For this purpose, Basic Pension Investment Societies and Basic 1 Investment Societies will use the Value at Risk parameter, expressed as a percentage with respect to the value of the Assets Managed by the Investment Society, which is provided to them by the Administrator operating them, or in their case by the Valuation Society providing them services.

To this end, they will use as input the matrix of price differences, described in section I of the aforementioned Annex L, which must meet the criteria established for this purpose in the general financial provisions of the Retirement Savings Systems, which will be provided by the Price Provider contracted by each Investment Society.

TWENTY-THIRD.- Investment Societies must maintain a maximum limit of the Conditional Value at Risk Differential on the Assets Managed by the Investment Society, which will be determined by the Risk Analysis Committee based on the following parameters:

I.

Up to 0.30% of the Assets Managed by the Investment Society, for Basic 1 Investment Societies;

II.

Up to 0.45% of the Assets Managed by the Investment Society, for Basic 2 Investment Societies;

III.

Up to 0.70% of the Assets Managed by the Investment Society, for Basic 3 Investment Societies, and

IV.

Up to 1.00% of the Assets Managed by the Investment Society, for Basic 4 Investment Societies.

For such purposes, the Risk Analysis Committee will determine and update annually, or whenever market conditions require, the limits for each of the reference Investment Societies regarding the Conditional Value at Risk Differential within the parameters established in the previous fractions and inform the Administrators, as well as the Board of Directors of the Commission in the first session held by this body.

For the calculation of the Conditional Value at Risk Differential, Investment Societies must adhere to the methodology provided for in sections I and III of Annex L of these provisions.

Investment Societies, in their operation, will determine the limits of the Conditional Value at Risk Differential for the Assets Managed by the Investment Societies, which will not exceed the maximum limit established for this purpose by the Risk Analysis Committee. For this purpose, Investment Societies will use the Conditional Value at Risk Differential parameter, expressed as a percentage with respect to the value of the Assets Managed by the Investment Society, which is provided to them by the Administrator operating them, or in their case by the Valuation Society providing them services.

To this end, they will use as input the matrix of price differences, described in section I of the aforementioned Annex L, which must meet the criteria established for this purpose in the general financial provisions of the Retirement Savings Systems, which will be provided by the Price Provider contracted by each Investment Society for the computation of Conditional Value at Risk and subsequently calculate the Conditional Value at Risk Differential.

TWENTY-FOURTH.- Basic Investment Societies must observe the following diversification criteria:

I.

Investment in Debt Instruments and Foreign Debt Securities issued, guaranteed or accepted by the same issuer may not exceed 5% of the Total Asset of the Investment Society and must hold the ratings provided for in Annexes A, B, C, D, F, G, H, J or K of these provisions, as appropriate with the nationality of the issuer and the Currency in which it is denominated. Investment in Debt Instruments issued, guaranteed or accepted by the same issuer referred to in the Second Provision fraction XXXa may not exceed 10% of the Total Asset of the Investment Society and must hold the ratings provided for in Annexes A, B, C, D, F, G or H of these provisions, as appropriate.

Investment in Debt Instruments referred to in letters c), d) and e) of fraction XLIX of the Second Provision of these provisions, issued, guaranteed or accepted by the same issuer may not exceed 1% of the Total Asset of the Investment Society and must hold the ratings provided for in Annexes E or I of these provisions, as appropriate.

Investment in Hybrid Debt Instruments issued, guaranteed or accepted by the same issuer may not exceed 2% of the Total Asset of the Investment Society and must hold the ratings provided for in Annex D or H of these provisions, as appropriate.

Within the investment referred to in this fraction, Linked Structures to Underlyings or in their case the issuers of these or the issuers and the Counterparties of the components of said structures referred to in the Second Provision fraction XXXIV letters b) and c) will be computed.

Within the investment referred to in this fraction, indirect investment in Variable Income Components or Commodities carried out by Basic Investment Societies, through notes, Linked Structures to Underlyings or other authorized debt vehicles that may contain them, in accordance with the investment regime of the Basic Investment Society in question, will not be considered.

Investments of a Basic Investment Society in Debt Instruments and/or Foreign Debt Securities issued by the same issuer may not exceed the percentage of the Total Asset of the Investment Society provided for in this fraction, it being necessary to consider, if applicable, if they have a recognized guarantee.

Within the limit referred to in this fraction, the Compensated Value of Derivatives operations carried out with the same Counterparty, directly or in their case through Linked Structures to Underlyings, must be computed, provided that the Investment Society has the status of creditor with respect to said Compensated Value.

Derivatives whose underlying value is composed of some Debt Instrument or Foreign Debt Security will be considered for the purposes of this limit, the ratings of the Counterparties satisfying the requirements provided for in these provisions. Likewise, repo and securities lending operations must be computed within the limit referred to in this fraction, net of the guarantees received for this purpose. The Instruments that constitute the direct object of the repo and securities lending operations carried out by the Basic Investment Society in question will be part of the guarantees referred to in this paragraph.

Bank deposits will also be included within the limit referred to in this fraction.

In the case of Fiduciary Exchange Certificates or Participation Certificates, the limit referred to in this fraction will be calculated considering the settlor as the issuer and for debt investment vehicles, it will be calculated considering the issuer of each Debt Instrument or Foreign Debt Security that makes up the Vehicle. In the case where the settlor is a Bank, a Counterparty, a brokerage house, a Financial Entity or a corporation and the assets affected in trust are receivable rights, directly or indirectly, against one or more legal entities, the limit referred to in this fraction will be calculated in the same proportion in which they participate in the assets subject to the trust; with the exception of Marketized Instruments.

Without prejudice to the other limits applicable to guaranteed Debt Instruments and Foreign Debt Securities, the limit referred to in this fraction will be calculated for guarantors only by the guaranteed amount. The amount of the guarantee must not be accumulated to the issued amount for the purposes of calculating the Total Asset of the Investment Society. If the guarantee does not satisfy the criteria regarding credit ratings of these provisions, or if the Debt Instrument or Foreign Debt Security has a guarantor or some other credit enhancer not considered in these provisions, only the rating of the settlor or legal entities that apply according to the aforementioned paragraph will be taken into account. Guaranteed issuances will count in the limit provided for in this fraction in accordance with the credit rating of the issuance.

Likewise, Basic Investment Societies may consider that a Marketized Instrument is placed by an independent issuer, when such instruments meet the requirements established in the general financial provisions of the Retirement Savings Systems. In this case, each Marketized Instrument will be subject to the limit referred to in this fraction. In any case, the sum of all Marketized Instruments, which meet the above established, will be subject to the limit established in the previous Eighteenth Provision.

For the purposes of computing the value of investments made with each Counterparty or issuer in accordance with this fraction, the general financial provisions of the Retirement Savings Systems issued by the Commission will be followed.

II.

Investment in shares of National Issuers listed on a Stock Exchange authorized to organize and operate in terms of the Securities Market Law referred to in letters a) and b) of fraction LII of the previous Second Provision that belong to the national indices provided for in these provisions, may be a percentage of the maximum limit referred to in letter e) of fraction I of the previous Sixteenth Provision, which will be equivalent to the sum of the value of the weight assigned to each share in the IPC CompMX index, or in its case the most representative index of the Stock Exchange authorized to organize and operate in terms of the Securities Market Law determined by the Risk Analysis Committee, as well as the range of modification due to marketability determined by the Risk Analysis Committee. In the case of shares of National Issuers listed on a Stock Exchange authorized to organize and operate in terms of the Securities Market Law that do not form part of the IPC CompMX index or that determined by the Risk Analysis Committee, investment may be up to 4% of the limit referred to in letter e) of fraction I of the previous Sixteenth Provision. In the case of FIBRAS and Real Estate Investment Vehicles, this limit may not exceed 2% of the Total Assets Managed by the Investment Society, and in its case the limit determined by the Risk Analysis Committee.

Investment in Foreign Variable Income Securities acquired through Managers may be up to the percentage of the Total Asset of the Investment Society determined by the Risk Analysis Committee, based on the development of the financial markets in question, a percentage that may not exceed the maximum limits provided for in letters d) and e) of fraction I of the previous Sixteenth Provision.

III.

Investment in Investment Assets issued, guaranteed or accepted by Related Societies may be up to 15% of the Total Asset of the Investment Society.

IV.

Investment in Debt Instruments, Foreign Debt Securities, Marketized Instruments, Linked Structures to Underlyings, and FIBRAS, if applicable, belonging to the same issuance, may be up to 35% of the total value of the respective issuance, together with what other Investment Societies operated by the Administrator have invested. Administrators must request that Managers send them with the frequency determined by the Commission the report of the investments in the assets referred to in this paragraph that they have carried out during the immediate previous period; in the event that the sum of the investments made by the Managers and those made by all Investment Societies operated by the same Administrator exceeds the limit provided for in this fraction; the Investment Society must adhere to what is provided in the general financial provisions of the Retirement Savings Systems regarding the portfolio reconstruction of Investment Societies, issued by the Commission.

Investments made in Vehicles must observe what is provided in the previous paragraph.

For investment in Structured Instruments, the set of Basic Investment Societies operated by the same Administrator must adhere to the following:

a)

They may acquire directly up to 100% of the same issuance;

b)

They may invest up to 50% of the value of each financed project, when the amount of the Structured Instrument issuance is greater than or equal to the threshold established in the general financial provisions of the retirement savings systems, provided that the promoter, the administrator or other qualified investors, including Investment Societies operated by other Administrators, alone or together, invest 50% or more of the value of each financed project;

c)

They may invest up to 80% of the value of each financed project, when the amount of the Structured Instrument issuance is less than the threshold established in the general financial provisions of the retirement savings systems, provided that the promoter, the administrator or other qualified investors, including Investment Societies operated by other Administrators, alone or together, invest 20% or more of the value of each financed project.

In any case, the investment of the promoter, the administrator or other qualified investors, may be through the Structured Instrument.

Investment Societies or the Administrator operating them will adhere to what is provided in the general financial provisions of the retirement savings systems when they have financial links with the societies carrying out the promoted projects, their shareholders or co-investors. Without prejudice to the above, in the case of investment in Structured Instruments acquired through Managers, the Risk Analysis Committee will determine the maximum applicable investment limits, in no way shall the sum of the investments made by the Managers and those made by all Investment Societies operated by the same Administrator exceed the limit provided for in this fraction.

To this end, Administrators must request that Managers send them with the frequency determined by the Commission the report of the percentage of the issuances they have acquired during the immediate previous period; in the event that the sum of the investments made by the Managers and those made by the Investment Society exceeds the limit provided for in this fraction; the Investment Society must adhere to what is provided in the general financial provisions of the Retirement Savings Systems regarding the portfolio reconstruction of Investment Societies, issued by the Commission.

In the case of Debt Instruments, Foreign Debt Securities and Marketized Instruments, Investment Societies may acquire the value that is greater between three hundred

millions of pesos and 35% of the same issuance. This is without prejudice to the Risk Analysis Committee's authority to establish criteria and guidelines for the selection of permissible credit risks, considering market conditions.

Debt Instruments, Foreign Debt Securities, Securitized Instruments, FIBRAs, and, where applicable, Structured Instruments shall be considered part of the same issuance when they have identical characteristics, which must be expressly stated in the independent legal opinion regarding the issuance in question. This applies even if such Debt Instruments, Foreign Debt Securities, Securitized Instruments, FIBRAs, and Structured Instruments were issued through different acts and on different dates by the same issuer.

For the purposes of investment limits per issuance, Debt Instruments, Foreign Debt Securities, Securitized Instruments, FIBRAs, and, where applicable, Structured Instruments that are pending placement or have been amortized shall not be considered.

V.

Investment in a single issuance of Structured Instruments shall not exceed 3% of the Total Assets of the Investment Company.

VI.

Investment Companies may only acquire Fiduciary Exchange Certificates for Investment Projects that allocate at least 10% of the total maximum authorized amount of the issuance to investment or financing of activities or projects within national territory, by one or more companies.

In the event that investment within national territory is less than the percentage defined in this subsection, the provisions of the General Provisions on Financial Matters of the Retirement Savings Systems shall apply.

In the case of the Vehicles referred to in the previous Ninth provision, whose underlying assets are Debt Instruments and Foreign Debt Securities, the limits provided in this provision shall apply only to the issuers of said Instruments and Securities. Such Vehicles shall not be subject to the limits provided in the previous subsection IV.

The limits provided in subsections I and IV of this provision shall not apply to Instruments issued or guaranteed by the Federal Government or issued by the Bank of Mexico.

TWENTY-FIFTH.- Investment in Investment Assets denominated in Foreign Currency may sum up to 30% of the Total Assets of the respective Basic Investment Company.

Within the limit referred to in the preceding paragraph, the market value of Open Contracts with Derivatives entered into by Basic Investment Companies whose underlying asset is Foreign Currency, as well as the market value of Derivatives, repurchase agreements, and securities lending denominated in Foreign Currency, shall be computed.

For the purposes of verifying compliance with this provision, the provisions of the General Provisions on Financial Matters of the Retirement Savings Systems issued by the Commission shall apply.

Basic Investment Companies 1 to 4 may acquire Foreign Currencies, directly or through Derivatives, that they require to effect the settlement or hedging of operations with Investment Assets.

The Risk Analysis Committee, considering the safety and development of the corresponding markets, may establish requirements for the operation of Investment Companies with Foreign Currencies.

TWENTY-SIXTH.- Basic Investment Companies shall subject their investment portfolios to the guidelines and limits regarding minimum liquidity parameters established in the General Provisions on Financial Matters of the Retirement Savings Systems.

CHAPTER III

ADDITIONAL INVESTMENT COMPANIES

TWENTY-SEVENTH.- Additional Investment Companies may invest their resources in Investment Assets and any other documents permitted by the Law.

TWENTY-EIGHTH.- Additional Investment Companies must establish in their information prospectuses the matters related to risk parameters, as well as observe what is provided in the previous Fourth, Fifth, and Eighth provisions.

CHAPTER IV

ON THE MERGER OR TRANSFER OF PORTFOLIOS OF INVESTMENT COMPANIES

TWENTY-NINTH.- In the event of the merger or transfer of portfolios of Investment Companies, the merging company, or, where applicable, the assignee, may exceed during a period of 360 natural days counted from the date the merger or transfer takes effect, the limits provided in the Twenty-Second, Twenty-Third, and subsection IV of the Twenty-Fourth provisions of these General Provisions, provided that the excess is a consequence of the merger or transfer of the portfolio. Investment Companies shall not acquire more Debt Instruments, Foreign Debt Securities, Structures Linked to Underlyings, FIBRAs, and, where applicable, Structured Instruments of the issuance in which they have the excess during the aforementioned period.

TRANSITORY PROVISIONS

FIRST.- These General Provisions shall enter into force on the next business day following their publication in the Official Gazette of the Federation, with the exception of the Second provision, subsection LII, clause d), Sixteenth provision, subsection I, clause g), subnumber i, and Twenty-Fourth provision, subsection IV, third paragraph, until such time as specific requirements are established in the General Provisions on Financial Matters of the Retirement Savings Systems.

SECOND.- Basic Investment Companies 2 to 4 that comply with the following may substitute the regulatory limits of Value at Risk:

I.

Establishment of an investment policy and strategy consistent with the term and profile of each Basic Investment Company operating, with the opinion of their risk committees, investment committees, their Independent Directors, and a monitoring process by the Regulatory Comptroller;

II.

Possession of the non-objection of the Commission regarding the reference portfolio in accordance with the General Provisions on Financial Matters of the Retirement Savings Systems, and

III.

Possession of the necessary systems for the coordination of operations, risk management, and registration of operations.

Until Basic Investment Companies 2 to 4 comply with the above, they must obey the following Value at Risk limits and the methodology provided in sections I and II of Annex L of these provisions:

a.

Up to 1.10% of the Assets Managed by the Investment Company, for Basic Investment Companies 2;

b.

Up to 1.40% of the Assets Managed by the Investment Company, for Basic Investment Companies 3, and

c.

Up to 2.10% of the Assets Managed by the Investment Company, for Basic Investment Companies 4.

THIRD.- Investment Companies shall observe the following diversification criteria until such time as the Commission verifies that the methodologies and measurement elements for the additional credit evaluation provided by securities rating agencies have been fully implemented in accordance with the General Provisions on Financial Matters of the Retirement Savings Systems issued by the Commission:

a)

Up to 5% of the Total Assets of the Investment Company in Debt Instruments and Foreign Debt Securities that hold the ratings provided in Annexes A, F, and J of these provisions;

b)

Up to 3% of the Total Assets of the Investment Company in Debt Instruments that hold the ratings provided in Annexes B and G of these provisions;

c)

Up to 2% of the Total Assets of the Investment Company in Debt Instruments that hold the ratings provided in Annex C of these provisions, and

d)

Up to 1% of the Total Assets of the Investment Company in Debt Instruments that hold the ratings provided in Annex D of these provisions.

For the purposes of computing the value of investments made with each Counterparty or issuer in accordance with this provision, what is established in these provisions and Annex G of the General Provisions on Financial Matters of the Retirement Savings Systems issued by the Commission shall apply.

What is provided in this article is not applicable to the Debt Instruments referred to in the Second provision, subsection XXXa.

FOURTH.- The "General Provisions Establishing the Investment Regime to which Specialized Investment Companies for Retirement Funds shall be Subject," published in the Official Gazette of the Federation on September 19, 2017, are hereby repealed.

Likewise, with the entry into force of these provisions, any provision issued by the Commission that is contrary to this regulation is hereby repealed.

FIFTH.- Investment Companies that demonstrate to the Commission that, as a result of the entry into force of these General Provisions, some investment limit is breached, must present to the Commission a portfolio reconstruction program for its non-objection, in order to adjust their investment portfolios and comply with the investment limits defined in these provisions.

In the event of observing any non-compliance with these provisions, it shall not be imputable to the Administrator operating the respective Investment Company, provided that the corresponding adjustment is provided for in the reconstruction program presented to the Commission.

SIXTH.- The presentation of modifications to the prospectuses and brochures resulting from the entry into force of these provisions shall be in terms of what is established in the General Provisions on Financial Matters of the Retirement Savings Systems.

Mexico City, December 21, 2017.- Based on the provisions of articles 9, third paragraph, 11, and 12 subsections I, VIII, XIII, and XVI of the Law of the Retirement Savings Systems; 2 subsection III, 4 third and fourth paragraphs, and 8 first paragraph of the Internal Regulations of the National Commission of the Retirement Savings System, the President of the National Commission of the Retirement Savings System,

Carlos

Ramírez Fuentes .- Rubric.

ANNEX A 1

Ratings for Instruments denominated in National Currency and Investment Units, as well as for National Counterparties.

Short-Term Issuances

(Maturity up to one year)

FITCH MEXICO

MOODY ' S

VERUM

F1+(mex)

MX-1

1+/M

STANDARD & POOR ' S

HR RATINGS DE MEXICO

DBRS RATINGS MEXICO

mxA-1+

HR+1

R-1.MX(high)

Medium and Long-Term Issuances

(Maturity greater than one year)

FITCH MEXICO

MOODY ' S

VERUM

AAA(mex)

Aaa.mx

AAA/M

STANDARD & POOR ' S

HR RATINGS DE MEXICO

DBRS RATINGS MEXICO

mxAAA

HR AAA

AAA.MX

1

To comply with what is provided in the Fourth provision of these provisions, Administrators must verify that at least one of the securities rating agencies issuing an opinion on the Investment Asset has at least ten years of experience counted from its authorization to organize and operate in the Mexican market or in any of the other Eligible Countries for Investments.

ANNEX B 2

Ratings for Instruments denominated in National Currency and Investment Units, as well as for National Counterparties.

Short-Term Issuances

(Maturity up to one year)

FITCH MEXICO

MOODY ' S

VERUM

F1(mex)

MX-2

1/M

STANDARD & POOR ' S

HR RATINGS DE MEXICO

DBRS RATINGS MEXICO

mxA-1

HR1

R-1.MX(medium)

Medium and Long-Term Issuances

(Maturity greater than one year)

FITCH MEXICO

MOODY ' S

VERUM

AA+(mex) / AA(mex) / AA-(mex)

Aa1.mx / Aa2.mx / Aa3.mx

AA+/M / AA/M / AA-/M

STANDARD & POOR ' S

HR RATINGS DE MEXICO

DBRS RATINGS MEXICO

mxAA+ / mxAA / mxAA-

HR AA+ / HR AA / HR AA-

AA.MX(high) / AA.MX /

AA.MX(low)

2

To comply with what is provided in the Fourth provision of these provisions, Administrators must verify that at least one of the securities rating agencies issuing an opinion on the Investment Asset has at least ten years of experience counted from its authorization to organize and operate in the Mexican market or in any of the other Eligible Countries for Investments.

ANNEX C 3

Ratings for Instruments denominated in National Currency and Investment Units, as well as for National Counterparties.

Short-Term Issuances

(Maturity up to one year)

FITCH MEXICO

MOODY ' S

VERUM

F2(mex)

MX-3

2/M

STANDARD & POOR ' S

HR RATINGS DE MEXICO

DBRS RATINGS MEXICO

mxA-2

HR2

R-1.MX(low)

Medium and Long-Term Issuances

(Maturity greater than one year)

FITCH MEXICO

MOODY ' S

VERUM

A+(mex)

A1.mx

A+/M

A(mex)

A2.mx

A/M

A-(mex)

A3.mx

A-/M

STANDARD & POOR ' S

HR RATINGS DE MEXICO

DBRS RATINGS MEXICO

mxA+

HR A+

A.MX(high)

mxA

HR A

A.MX

mxA-

HR A-

A.MX(low)

3

To comply with what is provided in the Fourth provision of these provisions, Administrators must verify that at least one of the securities rating agencies issuing an opinion on the Investment Asset has at least ten years of experience counted from its authorization to organize and operate in the Mexican market or in any of the other Eligible Countries for Investments.

ANNEX D 4

Ratings for Instruments denominated in National Currency and Investment Units, as well as for National Counterparties.

Short-Term Issuances

(Maturity up to one year)

FITCH MEXICO

MOODY ' S

VERUM

F3(mex)

Not applicable

3/M

STANDARD & POOR ' S

HR RATINGS DE MEXICO

DBRS RATINGS MEXICO

mxA-3

HR3

R-2.MX(high)

R-2.MX(medium)

R-2.MX(low)

R-3.MX

Medium and Long-Term Issuances

(Maturity greater than one year)

FITCH MEXICO

MOODY ' S

VERUM

BBB+(mex)

Baa1.mx

BBB+/M

BBB(mex)

Baa2.mx

BBB/M

STANDARD & POOR ' S

HR RATINGS DE MEXICO

DBRS RATINGS MEXICO

mxBBB+

HR BBB+

BBB.MX(high)

mxBBB

HR BBB

BBB.MX

4

To comply with what is provided in the Fourth provision of these provisions, Administrators must verify that at least one of the securities rating agencies issuing an opinion on the Investment Asset has at least ten years of experience counted from its authorization to organize and operate in the Mexican market or in any of the other Eligible Countries for Investments.

ANNEX E 5

Ratings for Subordinated Obligations denominated in National Currency and Investment Units. 6

Short-Term Issuances

(Maturity up to one year)

FITCH MEXICO

MOODY ' S

VERUM

F3(mex)

MX-3

3/M

STANDARD & POOR ' S

HR RATINGS DE MEXICO

DBRS RATINGS MEXICO

mxA-3

HR3

R-2.MX(high)

R-2.MX(medium)

R-2.MX(low)

R-3.MX

Medium and Long-Term Issuances

(Maturity greater than one year)

FITCH MEXICO

MOODY ' S

VERUM

BBB-(mex)

Baa3.mx

BBB-/M

BB+(mex)

Ba1.mx

BB+/M

STANDARD & POOR ' S

HR RATINGS DE MEXICO

DBRS RATINGS MEXICO

mxBBB-

HR BBB-

BBB.MX(low)

mxBB+

HR BB+

BB.MX(high)

5

To comply with what is provided in the Fourth provision of these provisions, Administrators must verify that at least one of the securities rating agencies issuing an opinion on the Investment Asset has at least ten years of experience counted from its authorization to organize and operate in the Mexican market or in any of the other Eligible Countries for Investments.

6

Subordinated obligations as defined in subsection XLIX clauses c), d), and e) of the Second provision of these provisions.

ANNEX F 7

Ratings for Instruments denominated in Foreign Currency.

Short-term issuances

(Maturity up to one year)

MOODY'S

FITCH IBCA

DBRS RATINGS MEXICO

P-1

F1+ / F1

R-1(high) / R-1(middle)

P-2

F2

R-1(low)

STANDARD & POOR ' S

HR RATINGS DE MEXICO

A-1+ /A-1

HR + 1(G)/ HR1(G)

A-2

HR2(G)

Medium and long-term issuances

(Maturity greater than one year)

MOODY'S

FITCH IBCA

DBRS RATINGS MEXICO

Aaa

AAA

AAA

Aa1/ Aa2 / Aa3

AA+/ AA / AA-

AA(high) / AA / AA(low)

A1/ A2 / A3

A+/ A/ A-

A(high) / A / A(low)

Baa1

BBB+

BBB(high)

STANDARD & POOR ' S

HR RATINGS DE MEXICO

AAA

HR AAA(G)

AA+/ AA/ AA-

HR AA+(G)/ HR AA(G)/ HR AA-(G)

A+/ A /A-

HR A+(G)/ HR A(G)/ HR A-(G)

BBB+

HR BBB+(G)

7

To comply with what is provided in the Fourth provision of these provisions, Administrators must verify that at least one of the credit rating agencies issuing an opinion on this matter regarding the Investment Asset has at least ten years of experience counted from its authorization to organize and operate in the Mexican market or in any of the other Eligible Countries for Investments.

ANNEX G 8

Ratings for Instruments denominated in Foreign Currency.

Short-term issuances

(Maturity up to one year)

MOODY'S

FITCH IBCA

DBRS RATINGS MEXICO

P-3

F3

R-2(high)

R-2(middle)

R-2(low)

R-3

STANDARD & POOR ' S

HR RATINGS DE MEXICO

A-3

HR3(G)

Medium and long-term issuances

(Maturity greater than one year)

MOODY'S

FITCH IBCA

DBRS RATINGS MEXICO

Baa2/ Baa3

BBB/ BBB-

BBB/BBB(low)

STANDARD & POOR ' S

HR RATINGS DE MEXICO

BBB/ BBB-

HR BBB (G)/ HR BBB-(G)

8

To comply with what is provided in the Fourth provision of these provisions, Administrators must verify that at least one of the credit rating agencies issuing an opinion on this matter regarding the Investment Asset has at least ten years of experience counted from its authorization to organize and operate in the Mexican market or in any of the other Eligible Countries for Investments.

ANNEX H 9

Ratings for Instruments denominated in Foreign Currency.

Medium and long-term issuances

(Maturity greater than one year)

MOODY'S

FITCH IBCA

DBRS RATINGS MEXICO

Ba1/ Ba2

BB+/ BB

BB(high)/BB

STANDARD & POOR ' S

HR RATINGS DE MEXICO

BB+/ BB

HR BB+ (G)/ HR BB(G)

9

To comply with what is provided in the Fourth provision of these provisions, Administrators must verify that at least one of the credit rating agencies issuing an opinion on this matter regarding the Investment Asset has at least ten years of experience counted from its authorization to organize and operate in the Mexican market or in any of the other Eligible Countries for Investments.

ANNEX I 10

Ratings for Subordinated Obligations denominated in Foreign Currency. 11

Short-term issuances

(Maturity up to one year)

MOODY'S

FITCH IBCA

DBRS RATINGS MEXICO

P-3

F3

R-2(high)

R-2(middle)

R-2(low)

R-3

STANDARD & POOR ' S

HR RATINGS DE MEXICO

A-3

HR3(G)

Medium and long-term issuances

(Maturity greater than one year)

MOODY'S

FITCH IBCA

DBRS RATINGS MEXICO

Ba3/ B1

BB-/ B+

BB(low)/B(high)

STANDARD & POOR ' S

HR RATINGS DE MEXICO

BB-/ B+

HR BB-(G)/ HR B+(G)

10

To comply with what is provided in the Fourth provision of these provisions, Administrators must verify that at least one of the credit rating agencies issuing an opinion on this matter regarding the Investment Asset has at least ten years of experience counted from its authorization to organize and operate in the Mexican market or in any of the other Eligible Countries for Investments.

11

Subordinated obligations as defined in subsection XLIX clauses c), d), and e) of the Second provision of these provisions.

ANNEX J 12

Ratings for Foreign Securities and for Foreign Counterparties.

Short-term issuances

(Maturity up to one year)

MOODY'S

FITCH IBCA

DBRS RATINGS MEXICO

P-1

F1+/F1

R-1(high) / R-1(middle)

P-2

F2

R-1(low)

STANDARD & POOR ' S

HR RATINGS DE MEXICO

A-1+/A-1

HR+1(G)/ HR1(G)

A-2

HR2(G)

Medium and long-term issuances

(Maturity greater than one year)

MOODY'S

FITCH IBCA

DBRS RATINGS MEXICO

Aaa

AAA

AAA

Aa1/ Aa2/ Aa3

AA+/ AA/ AA-

AA(high) / AA / AA(low)

A1/ A2 /A3

A+/ A/ A-

A(high) / A / A(low)

STANDARD & POOR ' S

HR RATINGS DE MEXICO

AAA

HR AAA(G)

AA+/ AA/ AA-

HR AA+ (G)/ HR AA(G)/ HR AA-(G)

A+/ A/ A-

HR A+(G)/ HR A(G)/ HR A-(G)

12

To comply with what is provided in the Fourth provision of these provisions, Administrators must verify that at least one of the credit rating agencies issuing an opinion on this matter regarding the Investment Asset has at least ten years of experience counted from its authorization to organize and operate in the Mexican market or in any of the other Eligible Countries for Investments.

ANNEX K 13

Ratings for Foreign Securities and for Foreign Counterparties

Short-term issuances

(Maturity up to one year)

MOODY'S

FITCH IBCA

DBRS RATINGS MEXICO

P-3

F3

R-2(high)

R-2(middle)

R-2(low)

R-3

STANDARD & POOR ' S

HR RATINGS DE MEXICO

A-3

HR3(G)

Medium and long-term issuances

(Maturity greater than one year)

MOODY'S

FITCH IBCA

DBRS RATINGS MEXICO

Baa1 / Baa2 / Baa3

BBB+ / BBB / BBB-

BBB(high) / BBB / BBB(low)

STANDARD & POOR ' S

HR RATINGS DE MEXICO

BBB+ / BBB / BBB-

HR BBB+(G) / HR BBB(G) / HR BBB-(G)

13

To comply with what is provided in the Fourth provision of these provisions, Administrators must verify that at least one of the credit rating agencies issuing an opinion on this matter regarding the Investment Asset has at least ten years of experience counted from its authorization to organize and operate in the Mexican market or in any of the other Eligible Countries for Investments.

ANNEX L

I. Methodology for the calculation of Value at Risk (VaR) for one day using historical data.

To calculate the VaR of each Investment Company considering the Assets Managed by the respective Investment Company, using historical data, the Administrator or, where applicable, the Valuation Company providing services to them, shall calculate the VaR based on the information provided by the corresponding Price Provider and the positions of the different Investment Assets that make up the portfolio of the respective Investment Company, in accordance with the General Provisions on Financial Matters issued by the Commission. Bank deposits denominated in pesos and Structured Instruments shall not be considered.

Information provided by the Price Provider:

The Instruments, Foreign Securities, Derivatives, repurchase agreements, and securities lending operations that are feasible to be acquired or operated by the Investment Company shall be referred to as the Assets

Permitted or Permitted Asset in case of referring to only one of them.

Each business day prior to the date of calculating the VaR represents a possible scenario for the value of the factors that determine the price of the Permitted Assets. The 1,000 business days prior to the day of calculating the VaR will be called Scenarios. From the information obtained in the Scenarios, an estimate of the price distribution can be obtained.

The price of each of the Permitted Assets is determined by a valuation formula according to the methodology of the Price Provider authorized by the National Banking and Securities Commission that involves k risk factors

such as inflation, interest rates, exchange rates, etc. depending on each of the Permitted Assets to be evaluated. The price of Permitted Asset j on day h is expressed in terms of these factors as the valuation formula f:

Specifically, the PRs are constructed assuming that the percentage of the portfolio allocated to equity investment is made entirely in the Mexican Stock Exchange Price and Quotation Index. Similarly, it is assumed that the percentage of the portfolio allocated to fixed-income investment is made through a basket of government debt securities with weights for each security defined as the percentage that said security represents with respect to the amount in circulation of government securities.

The Risk Analysis Committee may make adjustments, when market conditions dictate, on the parameters used in the determination of value as well as in the PR to ensure that said portfolio continues to be representative of the investment opportunities of the type of Investment Company in question. The Commission will publish through its website the detailed characteristics of the PRs, as well as the current value of the number of scenarios corresponding to the VaR of each Investment Company obtained considering the inputs provided by the Price Providers.

To calculate the VaR, eight decimal places will be used, truncating the last digit, which is equivalent to saying that when the VaR is expressed in percentage terms, six truncated decimals must be used.

III.

Calculation of the Conditional Value at Risk Differential applicable to Investment Companies

To calculate the Conditional Value at Risk Differential for each Investment Company considering only the Assets Managed by the Investment Company, the following shall apply:

The CVaR of each Investment Company is calculated, using the distribution of returns ordered from lowest to highest obtained for the calculation of VaR detailed in section I of this Annex as the simple average of those observations, expressed in positive terms, that are above scenario 26 including this scenario.

The CVaR of each Investment Company is calculated, following the same procedure indicated in the previous numeral, but excluding for its computation the positions in Derivative instruments.

The value of the difference of the CVaR determined in the previous numeral 1 minus the CVaR determined in the previous numeral 2 is calculated; for such purposes, the Risk Analysis Committee will determine the scenarios with which the CVaR values will be computed, which will remain in effect until the Risk Analysis Committee defines a new set of scenarios. The Risk Analysis Committee will evaluate and, if applicable, define at least every two years the set of scenarios considered in the computations described in this paragraph.

Additionally, the Risk Analysis Committee at any time may determine a different set of scenarios in a period shorter than indicated, considering the security of investments and the development of markets, as well as other elements that said collegiate body judges necessary to analyze; in the latter case, the Commission will make the applicable scenarios known to the Administrators in a period no less than five business days prior to their entry into force.

In the estimation of the CVaR and the CVaR Differential, eight decimal places will be used, truncating the last digit, which is equivalent to saying that, when the CVaR is expressed in percentage terms, six truncated decimals must be used.

ANNEX M

Stock Indices and Real Estate Indices of Countries Eligible for Investments.

The Stock Indices of Countries Eligible for Investments, Debt Indices of Countries Eligible for Investments, or Real Estate Indices of Countries Eligible for Investments acquired directly, through Vehicles or Derivatives by Investment Companies in eligible capital markets, may only refer to indices dictated by the independent expert referred to in the Ninth provision of these provisions that have a current favorable opinion. For such purposes, the Commission will request from the Administrators the information related to the dictation performed by the independent expert of the indices and, if applicable, Vehicles in accordance with what is established in the general provisions on financial matters of the Retirement Savings Systems and the general rules to which the information that administrators of retirement funds, specialized investment companies for retirement funds, receiving entities, and operating companies of the National SAR Database must submit to the National Retirement Savings System Commission shall be subject.

It shall be the responsibility of the Administrators to verify that the assets included in the reference index of Foreign Equity Value, Foreign Debt Value, Equity Instruments, Debt Instruments, FIBRAs or Real Estate Investment Vehicles, or the Vehicles that represent them, have a current favorable opinion issued by the independent expert referred to in the Ninth provision of these provisions.

Investments made in Foreign Equity Securities, Foreign Debt Securities, and Real Estate Investment Vehicles acquired through Mandatories may only be traded in capital markets of Countries Eligible for Investments.

I. Index replication criteria and others

Foreign Equity Securities, Foreign Debt Securities, and Real Estate Investment Vehicles acquired directly by Investment Companies in international capital markets, must refer to the shares, Foreign Debt Securities, and Real Estate Investment Vehicles that make up the indices and sub-indices, following the official weights of each of the issuers, of the Foreign Debt Securities and/or Real Estate Investment Vehicles that make up said indices and sub-indices. In this case, considering the stock, debt, or Real Estate Investment Vehicle indices that have a current favorable opinion issued by the independent expert referred to in the Ninth provision of these provisions, the official weights may be modified due to liquidity effects within a range that does not exceed +/- 6.5 percentage points, avoiding that the weight of each issuer, Foreign Debt Security, and/or Real Estate Investment Vehicle is negative.

The Risk Analysis Committee may modify the range described in the previous paragraph if, as a result of the correct operation of Foreign Equity Securities, Foreign Debt Securities, and/or Real Estate Investment Vehicles, the diversification of the portfolios of Investment Companies is fostered.

Investment Companies, when investing in indices directly, or if applicable, through Derivatives, must observe that said indices are composed of at least 97.5% of companies supervised by some authority of Countries Eligible for Investments.

In the event that there are modifications in the denomination of the indices or sub-indices mentioned in this Annex, or if it is intended to modify or include new indices or sub-indices in the list of indices that have a favorable opinion issued by the independent expert referred to in the Ninth provision of these provisions, the latter must re-evaluate the indices or sub-indices if such modifications or additions are made and determine the changes that must be made in said list.

The modifications and additions to the set of indices will be reported to the Advisory and Surveillance Committee and to the Board of Directors of the Commission in the first session that these bodies hold after the update performed by the independent expert referred to in the Ninth provision of these provisions.

ANNEX N

Methodology to calculate the exposure of investments through the Equity Component or to FIBRAs and Real Estate Investment Vehicles.

Section I. Calculation of the exposure of investments through Equity Components.

The exposure of investments made through Notes acquired or structured, Structures Linked to Underlyings, as well as Equity Components, must be calculated using the procedure described in this section.

For the purposes of this section, Notes and Structures Linked to Underlyings refer to Debt Instruments or Foreign Debt Securities whose returns are linked to Equity Components.

For the computation of the exposure referred to in this section, the debt component of the Notes and Structures Linked to Underlyings will not be considered.

I. Exposure of investments through Notes, Structures Linked to Underlyings, or Equity Component:

To determine the exposure of the Investment Company's portfolio, in case of the portfolios of the Mandatories that it has hired, when investing in Notes, Structures Linked to Underlyings, or Equity Components, the 'Deltas' of Equity Instruments, Foreign Equity Securities, or Derivatives, referred to Equity Components directly or through the Vehicles containing them, will be used.

The 'Delta' will be:

a)

In the case of Vehicles that confer rights on Equity Components, shares that replicate them, futures referred to said underlyings, equal to one.

b)

In the case of option contracts or optional titles referred to in the second provision, fraction LII, subsection d) of these provisions, they will be calculated by the Price Provider contracted by the Investment Company. Such Delta will be calculated per contract unit or title as appropriate and assuming a long position.

The amount exposed to each share that is part of the investment portfolio through Notes, Structures Linked to Underlyings, or Equity Components, will be calculated as follows:

I. Exposure of investments through Notes, Structures Linked to Underlyings, FIBRAs or Real Estate Investment Vehicles:

To determine the exposure of the Investment Company's portfolio, in case of the portfolios of the Mandatories that it has hired, when investing in Notes, Structures Linked to Underlyings, FIBRAs or Real Estate Investment Vehicles, the 'Deltas' of Derivative Instruments, referred to FIBRAs or Real Estate Investment Vehicles directly or through the Vehicles containing them, will be used.

The 'Delta' will be:

a)

In the case of Vehicles that confer rights on FIBRAs or Real Estate Investment Vehicles, futures referred to said underlyings, equal to one.

b)

In the case of option contracts, they will be calculated by the Price Provider contracted by the Investment Company. Such Delta will be calculated per contract unit and assuming a long position.

The amount exposed to each FIBRA or Real Estate Investment Vehicle that is part of the investment portfolio through Notes, Structures Linked to Underlyings, will be calculated as follows:

ANNEX P

List of Countries Eligible for Investments

In accordance with fraction LX of the Second provision of these provisions, the list of Countries Eligible for Investments is presented:

I.

Committee on the Global Financial System (CGFS) of the Bank for International Settlements (BIS)

Germany

India

Australia

England

Belgium

Italy

Brazil

Japan

Canada

Luxembourg

China

Mexico

South Korea

Netherlands

United States

Singapore

Spain

Sweden

France

Switzerland

Hong Kong

II.

Members of the Pacific Alliance (AP) with full rights whose stock exchanges belong to the Latin American Integrated Market (MILA)

Colombia

Peru

III.

European Union

Germany

Hungary

Austria

Ireland

Belgium

Italy

Bulgaria

Latvia

Cyprus

Lithuania

Croatia

Luxembourg

Denmark

Malta

Slovakia

Netherlands

Slovenia

Poland

Spain

Portugal

Estonia

United Kingdom

Finland

Czech Republic

France

Romania

Greece

Sweden

IV.

Members of the Organization for Economic Cooperation and Development (OECD) with which Mexico has valid free trade treaties

Chile

Israel

Iceland

Norway

V.

Countries determined considering the security of investments and the development of markets

Malaysia

South Africa

New Zealand

Thailand

Taiwan

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