General Provisions Establishing the Investment Regime for Specialized Investment Companies of Retirement Fund Societies — SHCP — MX

DOF: 31/05/2016

GENERAL PROVISIONS establishing the investment regime to which specialized investment companies of retirement fund societies 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 COMPANIES OF RETIREMENT FUND SOCIETIES SHALL BE SUBJECT.

CHAPTER I

COMMON PROVISIONS

Section I

Generalities

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

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

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 Company that are under the financial management of each Mandatary contracted by said Investment Company;

III.

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

IV.

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

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;

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 Credit Institutions;

XII.

Counterparty Rating, to the one assigned by the securities rating agencies 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.

Securities 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 legal entities, or by an estate affected in trust;

XIV.

Fiduciary Securities 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.

Securities Certificates Linked to Real Projects, to titles whose source of payment comes from the use or exploitation of real assets. The Securities 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 Instruments and Operations;

XVII.

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

XVIII.

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

XIX.

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

XX.

Financial Risk Committee, to the one provided for in article 42 bis of the Law;

XXI.

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

XXII.

Equity Components, to the Equity Instruments and Foreign Equity Securities through 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 Companies 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), as referred to in the Provisions of the Bank of Mexico;

XXVII.

Conditional Value at Risk Differential, to the difference in the Conditional Value at Risk of the portfolio of an Investment Company and the Conditional Value at Risk of that same portfolio calculated excluding the 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 companies of retirement fund societies in matters of financial operations known as derivatives, repurchase and securities lending, issued by the Central Bank;

XXIX.

Currencies, to the United States dollars, euros, yen, the currencies of 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 is necessary to analyze;

XXX.

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

XXXI.

National Issuers, to the Federal Government, Bank of Mexico, Private Companies, federal 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 Governmental 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:

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

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

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, the value of which 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 may be negative. Said value may be determined through authorized Derivatives.

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

Have the credit ratings provided for in these provisions, and

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

XXXV.

FIBRAS, to Generic FIBRAS and 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, which comply with what is provided in articles 187 and 188 of the Income Tax Law;

XXXVII.

FIBRA-E, to the fiduciary securities 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, which are registered, regulated and supervised by an 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:

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

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

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

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

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

Indexed Mutual Funds are included within this definition, which must passively replicate some authorized Equity, Real Estate or Debt Index.

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 the workers invested in the Investment Companies.

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 qualifications 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 the equity indicators that satisfy the requirements established by the Risk Analysis Committee;

XLIV.

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

XLV.

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

XLVI.

Credit Institutions, to the national universal banks and development banks;

XLVII.

Instruments, to all Securitized Instruments, Debt Instruments, Structured Instruments, FIBRAS and Equity Instruments denominated in national currency, Investment Units or Currencies issued by National Issuers, including Securities 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.

Securitized Instruments, to the following:

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 capacity levels, retained capital, subordinated series and financial guarantee determined by the Risk Analysis Committee, referred to in articles 43 fourth paragraph and 45 of the Law, and

Securities Certificates Linked to Real Projects;

XLIX.

Debt Instruments, to the following:

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

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

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

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

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 though said principal may 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.

Non-convertible subordinated obligations into shares.

Those included in this subsection are excepted, the series contemplated in the issuance of a financial instrument that before any event other than liquidation or commercial bankruptcy grants differentiated collection precedence rights to the holders of said series, whatever its denomination. In particular, the subordinated or mezzanine series of Securitized Instruments are not contemplated in the present definition.

Likewise, the different obligations and series of shares issued by a specialized anonymous society for the investment of financial resources are excluded from the present subsection.

Hybrid Debt Instruments.

The obligations referred to in subsections b), c), d), e) and f) above, must reach the minimum qualifications determined by the Risk Analysis Committee. In any case, the qualifications must be granted by at least two securities rating agencies 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 Securitized Instruments.

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:

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

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

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

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

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

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

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

LI.

Structured Instruments, to the following:

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 the Mexican Stock Exchange, 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

The Fiduciary Securities Certificates of Investment Projects that are destined to the investment or financing of the activities or projects within the national territory, of one or more societies.

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:

Shares destined for individual investment or through Equity Indices of Eligible Countries for Investments, of National Issuers listed on the Mexican Stock Exchange;

The shares of National Issuers, or the titles that represent them, that are the object of an initial public offering, total or partial, on the Mexican Stock Exchange, or in it together with other securities exchanges, and

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

LIII.

Mandatory Investments of the Administrators, to the special reserve and to the portion of its minimum paid capital that the Administrators must invest in shares of the Investment Companies 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 Companies 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 Investment Companies have celebrated intermediation contracts in which an investment mandate is granted whose exercise is subject to the guidelines determined by the contracting Investment Company;

LVII.

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

LVIII.

Merchandise, to the physical exposure to gold, silver, or platinum through Vehicles authorized by the Risk Analysis Committee, as well as to the underlying assets mentioned in the Bank of Mexico's Provisions on 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 credit;

LIX.

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

Those that participate in its share capital;

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

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 in question belongs, and

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, to the 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), to the member countries of the Pacific Alliance (AP) with full rights whose stock exchanges belong to the Latin American Integrated Market (MILA), to the European Union, or to the member countries of the Organization for Economic Co-operation and Development (OECD) with which Mexico has current free trade treaties. To this effect, the list of Eligible Countries for Investments will be published on the Commission's website. The Risk Analysis Committee, considering the security of investments and the development of markets, as well as other elements that said 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, to the legal entities authorized by the National Banking and Securities Commission in terms of the provisions applicable to Price Providers, as well as the 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, to the specialized investment societies of retirement funds;

LXIII.

Additional Investment Societies, to the 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 security funds;

LXIV.

Related Societies Among Themselves, to the commercial societies that form a set or group, in which, due to their patrimonial or liability links, the financial situation of one or more 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, to the legal entities independent of the Investment Societies, authorized by the National Banking and Securities Commission to provide the services of valuation of the shares of the Investment Societies, as well as the Custodians authorized by the corresponding authorities of the Eligible Countries for Investments to carry out operations in international markets;

LXVI.

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

LXVIII.

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

LXIX.

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

LXX.

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

LXXI.

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

LXXII.

Investment Units, to the units of account 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 the 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 the guarantees received to ensure the compliance of the operations with Derivatives that the Investment Societies enter into;

LXXIV.

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

LXXVII.

Foreign Debt Securities, to the 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 to the Securitized Instruments, issued by Foreign Issuers;

LXXVIII.

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

LXXIX.

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

LXXX.

Real Estate Investment Vehicles, to the 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 that are destined for leasing or to the acquisition of the right to receive income from the leasing of said properties, as well as to granting financing for those purposes.

THIRD.- The Investment Societies may enter into repo and securities lending operations with Counterparties on the Instruments, except Structured Instruments, Merchandise, Structures Linked to Underlyings and on Foreign Securities that make up their assets, acting the former only as repo sellers or lenders, 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.- The Debt Instruments denominated in national currency and Investment Units that the 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, the 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 rating 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 Counterparty of the investor with the Derivatives associated with the structure.

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

Structures Linked to Underlyings issued by Foreign Issuers, Foreign Issuers and the 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 the national Counterparties of the components of the 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 the national Counterparties referred to in this paragraph must reach the minimum ratings established in Annexes F, G or H of these provisions.

The aforementioned ratings must be granted by at least two authorized securities rating agencies and all the 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 have, 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 has.

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 the bank deposits of money on demand.

FIFTH.- The national Counterparties with which the Investment Societies enter into repo, securities lending or Derivatives operations, or the 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. This, without prejudice to complying with the Provisions of the Bank of Mexico.

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

SIXTH.- In the event that the authorized securities rating agencies modify the denomination of their ratings or authorized securities rating agencies 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 agencies. The Commission will publish in the Official Journal of the Federation the update of the Annexes determined by the Risk Analysis Committee and will inform the Consultative and Surveillance Committee and the Board of Directors of the Commission of the modification at the first session these bodies hold after 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 Derivatives 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 portfolio reconstruction of the Investment Societies, issued by the Commission.

EIGHTH.- The Investment Societies may only enter into Derivatives, 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 the Vehicles

NINTH.- The Risk Analysis Committee will determine the criteria to authorize the Vehicles, the Equity 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 object of investment by the Investment Societies, always ensuring the protection of the interests of the Workers.

The 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, the 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 the retirement fund administrators, the specialized investment societies of retirement funds, the receiving entities and the 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 the Administrators authorize, may make known 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, the Investment Societies must observe Best Practices.

The 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 the Mandatories they have hired.

The Investment Societies must define in the contracts they enter into with the Mandatories the investment rules to which the 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. The Investment Societies must provide in the aforementioned contracts that the Mandatories adhere to what is established in the general rules to which the information that the retirement fund administrators, the specialized investment societies of retirement funds, the receiving entities and the companies operating the National SAR Database must be subject, deliver to the National Commission of the Retirement Savings System.

The Basic Investment Societies, with the exception of the Basic Investment Societies of Pensions, 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 that are established in the general provisions in financial matters of the Retirement Savings Systems issued by the Commission.

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

ELEVENTH.- When the 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 hired, or due to inflows or outflows of resources, and as a consequence 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 hired 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 the Investment Societies or in their case to the Mandatories they have hired will not be considered as those causes provided for in the general provisions in financial matters of the Retirement Savings Systems regarding portfolio reconstruction, issued by the Commission where this is indicated.

Nor will non-compliance with the authorized investment regime attributable to the Investment Societies be considered as those originated by investments in Vehicles or replication of Equity Indices 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 approving opinion regarding compliance with the criteria that the Risk Analysis Committee determines to authorize the Vehicles, the Equity 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 object of investment by the Investment Societies.

For the purposes of the last paragraph of Article 44 of the Law, there shall be deemed to be a depreciation in the Total Managed Asset of the Investment Society when the price of the Investment Society's share at the close of a day (PS1) is lower than the price corresponding to said share on the previous business day (PS0). There shall be deemed to be a depreciation in the Managed Asset of 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 shall be deemed to be a depreciation in the Managed Asset of the Mandatary 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 shall establish through general provisions in financial matters the criteria applicable to Investment Societies to verify compliance with these provisions, whether by them or by the Mandataries that contract them.

There shall be deemed to be a depreciation in an Investment Object Asset when the price of said asset at the close of a day (PA1) is lower than the price corresponding to that asset on the previous business day or, as applicable, the acquisition price (PA0). The foregoing shall be applicable to the assets that make up the Vehicles and Real Estate Investment Vehicles in which the Investment Society invests. Regarding Investment Object Assets managed by Mandataries, 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 Object Asset or set of Investment Object Assets cause the non-compliance with the authorized investment regime, those Investment Object 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 Mandataries, the investments made in the projects that do not comply with what is provided in the Tenth Sixth Provision, fraction I, subsection f), or fraction II, subsection a), respectively, and other provisions applicable to FIBRAS or Structured Instruments, respectively.

Regarding the minimum limits applicable as referred to in the following Tenth Fifth Provision, the applicable selling price shall be used to determine that there is a depreciation. In this case, it shall be considered that a loss is caused to the Investment Society due to the non-compliance with regulatory limits 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 the depreciations caused to the Total Asset of the Investment Society, to the Managed Asset of the Investment Society, or as applicable, to the Managed Asset of the Mandatary, and the amounts of the depreciations of an Investment Object Asset with which the authorized investment regime is not complied with, shall be determined in accordance with the procedure provided in this provision and in Annex O of these provisions.

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

TENTH SECOND.- 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 that results from dividing the amount of the 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 the portfolio reconstruction of Investment Societies, issued by the Commission. The foregoing, 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

TENTH THIRD.- 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:

The Pension Basic Investment Society must invest the resources of:

Workers who are 60 years of age or older, who, considering their contribution period information, 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 in the Law of the Institute for Security and Social Services of State Workers published in said Gazette on December 27, 1983 with its reforms and additions;

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

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 for Security and Social Services of State Workers, or

ii.

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

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 for Security and Social Services of State Workers;

At the request of Workers:

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 for Security and Social Services of State Workers promulgated in 1983.

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

II.

The 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 modality of programmed withdrawals;

III.

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

IV.

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

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

TENTH FOURTH.- 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 different from 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. In order for Workers to exercise the rights provided 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

TENTH FIFTH.- 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 computed.

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 computed in accordance with the general provisions in financial matters of the Retirement Savings Systems issued by the Commission.

TENTH SIXTH.- Basic Investment Societies may invest in the following:

Basic Investment Societies 1 to 4:

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

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.

In demand money deposits in Banks;

In operations authorized to guarantee Derivatives as 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 to that effect 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 Tenth Fourth Provision of these provisions and the prudential provisions established in the general provisions in financial matters of the Retirement Savings Systems shall apply.

Up to 20% of the Total Asset of the Investment Society, in Foreign Securities. 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

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

Up to 5% of the Total Asset of the Investment Society, to the authorized equity underlyings for Basic Investment Societies 1;

ii.

Up to 25% of the Total Asset of the Investment Society, to the authorized equity underlyings for Basic Investment Societies 2;

iii.

Up to 30% of the Total Asset of the Investment Society, to the authorized equity underlyings for Basic Investment Societies 3, and

iv.

Up to 40% of the Total Asset of the Investment Society, to the authorized equity underlyings for Basic Investment Societies 4.

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

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

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 that the Commission establishes to that effect 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 provision of Annex M of these provisions.

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

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

II.

Basic Investment Societies 2 to 4:

In Structured Instruments, observing the diversification criteria provided in fractions IV and V of the following Tenth Fourth Provision. The investment may only be:

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

ii.

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 societies whose shares are listed on the Mexican Stock Exchange, provided that the latter had been subject to financing through a Structured Instrument prior to their listing in said capital market or when the cited societies object of the 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 securities markets by authorities of Eligible Countries for Investments. The investment in the Structured Instruments referred to in this paragraph must be subject to what is established in subsections ii and iii of this subsection. Structured Instruments may not be acquired nor maintain exposure through Derivatives.

In Commodities:

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 shall determine the criteria to authorize Commodity indices that may be subject to investment by Investment Societies, always ensuring the protection of the interests of Workers.

Likewise, in the case 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 if 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 that 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 of the modifications and additions of the set of Commodity indices to the Advisory and Surveillance Committee and to the Board of Directors of the Commission in the first session that these bodies hold subsequent to the publication.

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 to that effect in the general provisions in financial matters of the Retirement Savings Systems or in their defect carry out the investment through Mandataries.

III.

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

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;

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

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;

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

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 in Annexes A, B and C of these provisions, in which they act respectively as repos 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 Object Assets referred to in this provision and the Tenth Eighth Provision, directly, through Vehicles or as applicable Derivatives or Mandataries 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 Object Assets referred to in fraction III of this provision, must be subject to the minimum liquidity parameters referred to in the Tenth Sixth Provision of these provisions and may not acquire Investment Object Assets through Vehicles, Derivatives or Mandataries.

Investment Societies may invest in Investment Object Assets, in accordance with this chapter, in the aforementioned forms of exposure, 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 Object Assets when in its judgment they represent excessive risks for the portfolio of Investment Societies, in order to protect the interests of Workers.

TENTH SEVENTH.- Basic Investment Societies 1 to 4 may acquire Investment Object Assets through Mandataries.

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

That the Investment Society and the Mandatary 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 that it enters into with each Mandatary on behalf of the Investment Societies it operates, the parameters to which the Mandataries in question must be subject in accordance with the investment objectives of the Investment Society;

II.

That investments made in the name and representation of Investment Societies, are registered as investments for third parties segregated from the patrimony of the entity that contracts;

III.

The obligation of the Mandatary not to carry out the operations object of the contract with the Investment Society with entities with which any of the parties has a patrimonial link or conflict of interest of any kind;

IV.

That the valuation of Investment Object Assets and the report of investment portfolios are carried out in accordance with the general provisions in financial matters issued by the Commission;

That Mandataries must report to Investment Societies and to the Commission with the periodicity established in the General Provisions in financial matters issued by

the Commission, the prices applicable to determine, if applicable, the capital losses referred to in

Tenth Provision of these provisions;

VI.

The obligation of the Mandatario to comply, for investments in Investment Assets subject to

the contract in question, with the diversification criteria provided in section IV of the

Twenty-Fourth Provision;

VII.

That the costs generated by the administration of the mandate will be considered

as part of the commission charged by the Mandatario, with the exception of brokerage costs

established in the general provisions on financial matters 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 Mandatarios, as well as with

the investment advisors in Structured Instruments, must be available to the Commission.

TENTH EIGHTH.- Investment in Bursatilized Instruments that meet the requirements established

in the general provisions on financial matters of the Retirement Savings Systems,

must observe the diversification criteria provided in sections I, III and IV of the following

Twenty-Fourth Provision and obey the following limits:

Up to 10% of the Total Assets of the Investment Society, for Basic Investment

Societies

II.

Up to 15% of the Total Assets of the Investment Society, for Basic Investment

Societies

III.

Up to 20% of the Total Assets of the Investment Society, for Basic Investment

Societies

3, and

IV.

Up to 30% of the Total Assets of the Investment Society, for Basic Investment

Societies

TENTH NINTH.- Within the limits referred to in the Sixteenth Provision, the sum of the Compensated Values of operations with Derivatives that Basic Investment Societies enter into in over-the-counter markets in accordance with the Provisions of the Bank of

Mexico, must be computed, provided that the Investment Society has the status of creditor with respect to said

Compensated Values.

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

TWENTY-FIRST.- It is prohibited for:

Basic Investment Societies, the following:

To acquire 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 acts

equivalent ordered, if applicable, by some financial authority belonging to the Countries

Eligible for Investments;

To acquire Debt Instruments, Foreign Debt Securities, FIBRAS, Real Estate Investment

Vehicles issued, accepted or guaranteed by Financial Entities or brokerage houses with

which they have Patrimonial Links, as well as to invest in Mutual Funds administered by

Financial Entities with which they have Patrimonial Links;

To acquire Subordinated Debt Instruments and Foreign Debt Securities, except for Basic

Investment Societies 1 to 4, when it comes to the subordinated obligations referred to in

section XLIX subsections c), d), e) and f), of the previous Second Provision;

To acquire shares, as well as Debt Instruments and Foreign Debt Securities,

convertible into shares, except for Basic Investment Societies 1 to 4, when it comes to,

the shares or obligations convertible into shares referred to in sections

XLIX, subsection b) and LII, subsections a), b) and c) of the previous Second Provision, or of Foreign

Equity Securities acquired through Mandatarios;

To acquire 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 Societies;

To make bank deposits and enter into repo operations, securities lending, and

Derivatives with Financial Entities or brokerage houses with which they have Patrimonial Links;

To acquire Foreign Equity Securities, other than Equity Components.

For this purpose, the assets referred to in the penultimate paragraph of

the previous Sixteenth Provision shall not be considered prohibited, nor shall Foreign Equity Securities acquired through Mandatarios, and

To acquire FIBRAS, Real Estate Investment Vehicles or Bursatilized 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 Patrimonial Links.

Section III

Risk Parameters

TWENTY-SECOND.- Pension Basic Investment Societies and Basic Investment Societies 1 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, Pension Basic Investment Societies and Basic Investment Societies 1 must adhere to the methodology provided in sections I and II of Annex L of these provisions.

Pension Basic Investment Societies and Basic Investment Societies 1, 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, Pension Basic Investment Societies and Basic Investment Societies 1 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 that operates them, or in their case by the Valuation Society that provides them services.

To this effect, 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 provisions on financial matters of the Retirement Savings Systems, which will be provided by the Price Provider that each Investment Society has contracted.

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:

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

Societies 1;

II.

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

Societies 2;

III.

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

Societies 3, and

IV.

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

Societies 4.

For these purposes, the Risk Analysis Committee will determine and update annually, or when

market conditions require, the limits for each of the Investment Societies

regarding the Conditional Value at Risk Differential within the parameters established in the

previous sections 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 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 limit

maximum 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 that operates them, or in their case by the Valuation Society that provides them services.

To this effect, 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 provisions on

financial matters of the Retirement Savings Systems, which will be provided by the

Price Provider that each Investment Society has contracted for the calculation of the Conditional Value at

Risk and subsequently calculate the Conditional Value at Risk Differential.

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

Investment in Debt Instruments and Foreign Debt Securities issued, guaranteed or

accepted by the same issuer may not exceed 5% of the Total Assets of the Investment

Society and must hold the ratings provided 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 referred to in subsections c), d) and e) of section XLIX of

the Second Provision of these provisions, issued, guaranteed or accepted by the same

issuer may not exceed 1% of the Total Assets of the Investment Society and must hold the

ratings provided 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 Assets of the Investment Society and must hold the

ratings provided in Annex D or H of these provisions, as appropriate.

Within the investment referred to in this section, Linked Structures to

Underlyings or, in their case, the issuers of these or the issuers and the Counterparties of the

components of these structures referred to in the Second Provision section XXXIV

subsections b) and

c) will be computed.

Within the investment referred to in this section, indirect investment in

Equity Components or Commodities carried out by Basic Investment Societies, through

notes, Linked Structures to Underlyings or other authorized debt Vehicles that

might contain them, in accordance with the investment regime of the Basic Investment Society

in question, will not be considered.

The 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 Total Assets

of the Investment Society provided in this section, and it must be considered, if applicable, if

they have a recognized guarantee.

Within the limit referred to in this section, the Compensated Value of

Derivative 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 any Debt Instrument or Foreign

Debt Security will be considered for the purposes of this limit, and the ratings of the

Counterparties must satisfy the requirements provided in these provisions. Likewise,

repo operations and securities lending must be computed within the limit referred to in this section,

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 form part of the guarantees referred to in this paragraph.

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

In the case of Fiduciary Bursatilized Certificates or Participation Certificates, the limit referred to in

this section 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 constitutes 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 section will be calculated in the same proportion

in which they participate in the assets subject to the trust; with the exception of Bursatilized Instruments.

Without prejudice to the other limits applicable to guaranteed Debt Instruments and Foreign Debt Securities, the limit referred to in this section 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 Assets of the Investment Society. If the guarantee does not meet the criteria regarding the 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 towards the limit provided in this section in accordance with the credit rating of the issuance.

Likewise, Basic Investment Societies may consider that a Bursatilized Instrument is placed by an independent issuer, when such instruments meet the requirements established in the general provisions on financial matters of the Retirement Savings Systems. In this case, each Bursatilized Instrument will be subject to the limit referred to in this section. In any case, the sum of all Bursatilized Instruments that meet the above 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 section, the general provisions on financial matters of the Retirement Savings Systems issued by the Commission will apply.

II.

Investment in shares of National Issuers listed on the Mexican Stock Exchange referred to in subsections a) and b) of section LII of the previous Second Provision that belong to the national indices provided in these provisions, may be a percentage of the maximum limit referred to in section I subsection e) 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 Mexican Stock Exchange determined by the Risk Analysis Committee, as well as the range of modification due to bursatilization determined by the Risk Analysis Committee. In the case of shares of National Issuers listed on the Mexican Stock Exchange 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 section I subsection e) 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 Equity Securities acquired through Mandatarios may be up to the percentage of the Total Assets 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 in subsections d) and e) of section 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 Assets of the Investment Society.

IV.

Investment in Debt Instruments, Foreign Debt Securities, Bursatilized Instruments,

Linked Structures to Underlyings, FIBRAS and, in its case, Structured Instruments,

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 Mandatarios with the frequency that

determines the Commission to send them the report of the investments in the assets referred to in this

paragraph that they have made during the immediate previous period; in the event that the sum of

the investments made by the Mandatarios and those made by all Investment Societies

operated by the same Administrator exceed the limit provided in this section;

the Investment Society must comply with what is provided in the general provisions on

financial matters of the Retirement Savings Systems regarding the recomposition of

portfolio of Investment Societies, issued by the Commission.

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

In the case of Structured Instruments, the group of Basic Investment Societies

operated by the same Administrator may acquire directly more than 35% of an issuance in accordance with what is provided in the general provisions on financial matters of the

Retirement Savings Systems. For the instruments referred to in section LI, subsection a) of

the previous Second Provision, it will only apply when the promoter, the administrator or other

qualified investors, including Investment Societies operated by other

Administrators, alone or together, invest in the promoted projects, if applicable, through

the instrument in question, when at least a percentage equivalent to 20% of the value of the issuance.

This exception will not apply when the societies that carry out the promoted projects

or their shareholders have patrimonial links with the Investment Societies or the

Administrator that operates them. Without prejudice to the above, in the case of investment in

instruments referred to in section LI, subsection a) of the previous Second Provision acquired through

Mandatarios, the Risk Analysis Committee will determine the maximum investment limits

applicable, in no way shall the sum of the investments made by the

Mandatarios and those made by all Investment Societies operated by the same

Administrator exceed the limit provided in this section. To this effect, Administrators

must request Mandatarios to 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 Mandatarios and those made by

the Investment Society exceed the limit provided in this paragraph; the Investment Society

must comply with what is provided in the general provisions on financial matters of the

Retirement Savings Systems regarding the recomposition of portfolio of Investment Societies,

issued by the Commission.

In the case of Debt Instruments, Foreign Debt Securities and Bursatilized Instruments, Investment Societies may acquire the value that is greater between three hundred million pesos and 35% of the same issuance. This, without prejudice to the power of the Risk Analysis Committee to establish criteria and guidelines for the selection of permissible credit risks considering market conditions.

It will be considered that Debt Instruments, Foreign Debt Securities, Bursatilized Instruments, FIBRAS and, in its case, Structured Instruments belong to the same issuance when they have identical characteristics, which must be expressly stated in the independent legal opinion of the issuance in question. This, notwithstanding that said Debt Instruments, Foreign Debt Securities, Bursatilized Instruments, FIBRAS and Structured Instruments have been issued through acts and on different dates by the same issuer.

For the purposes of investment limits per issuance, Debt Instruments, Foreign Debt Securities, Bursatilized Instruments, FIBRAS and, in its case, Structured Instruments that are pending placement or have been amortized will not be considered.

Investment in Structured Instruments:

In case it is greater than 50% of the limit referred to in the Sixteenth Provision, section

II, subsection a), but less than 85% of said limit, it must be diversified into two or more

Structured Instruments authorized for each Investment Society, and

In case it is greater than 85% of the limit referred to in the Sixteenth Provision, section

II, subsection a), it must be diversified into three or more Structured Instruments authorized for

each Investment Society.

In the case of the Vehicles indicated in the previous Ninth Provision, whose underlying assets are

Debt Instruments and Foreign Debt Securities, the limits provided in this provision will be

applicable only to the issuers of said Instruments and Securities. Such Vehicles will not be subject to the limits provided in the previous section IV.

The limits provided in sections I and IV of this provision will not be applicable to

Instruments issued or guaranteed by the Federal Government or issued by the Bank of Mexico.

TWENTY-FIFTH.- Investment in Investment Assets denominated in Currencies 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 is Currencies, as well as the market value of Derivatives, repos, and securities lending denominated in Currencies, shall be counted.

For the purpose of verifying compliance with this provision, the general provisions in financial matters of the Retirement Savings Systems issued by the Commission shall apply.

Basic Investment Companies 1 to 4 may acquire 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 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 in financial matters of the Retirement Savings Systems.

CHAPTER III

ADDITIONAL INVESTMENT COMPANIES

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

EIGHTY-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 Fourth, Fifth, and Eighth provisions above.

CHAPTER IV

ON THE MERGER OR PORTFOLIO TRANSFER OF INVESTMENT COMPANIES

NINETIETH.- In the event of the merger or portfolio transfer of Investment Companies, the merging company, or, as applicable, the acquiring company, 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 the IV fraction of the Twenty-Fourth provision of these provisions, provided that the excess is a consequence of the merger or portfolio transfer. Investment Companies shall not acquire more Debt Instruments, Foreign Debt Securities, Structures Linked to Underlyings, FIBRAS, and, as applicable, Structured Instruments of the issuance in which they have the excess during the aforementioned period.

TRANSITORY

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 what is provided below in the following provisions:

Second, fractions XIV and XXXVII, which shall enter into force once they meet the requirements established in the general provisions in financial matters of the Retirement Savings Systems issued by the Commission;

II.

Tenth, regarding the definition of reference portfolios, shall enter into force in accordance with what is established in the General Provisions in financial matters of the Retirement Savings Systems issued by the Commission;

III.

Fourteenth, regarding the transfer of resources from one Basic Investment Company to another of their choice other than the one corresponding to their age, until such time as the applicable regulation is available in the general provisions in matters of operations of the retirement savings systems, and

IV.

Ninth, Eleventh, and Annex M, regarding the independent expert until such time as Administrators meet the eligibility requirements of the independent expert and accredit the requirements established in the general provisions in financial matters of the Retirement Savings Systems issued by the Commission.

Regarding the Commission's requirement to inform the Consultative and Surveillance Committee and the Board of Directors of the Commission about modifications and additions to the set of indices, said requirement shall be carried out in the first session that these bodies hold after the publication of said list, until such time as Administrators meet the eligibility requirements of the independent expert established in the general provisions in financial matters of the Retirement Savings Systems issued by the Commission.

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

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 surveillance process by the Regulatory Comptroller;

II.

Have the non-objection of the Commission regarding the reference portfolio in accordance with the general provisions in financial matters of the Retirement Savings Systems, and

III.

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

Until Basic Investment Companies 2 to 4 do not 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:

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

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

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

THIRD.- Investment Companies shall observe the relationship of Stock Indices of Eligible Countries for Investments, Real Estate Indices of Eligible Countries for Investments, or Debt Indices of Eligible Countries for Investments, as well as the Vehicles that replicate them, provided in fraction I of Annex M of the General Provisions establishing the investment regime to which specialized investment companies of retirement savings funds must be subject, published in the Official Gazette of the Federation on January 4, 2016, as well as those published on the Commission's website, until such time as Administrators meet the eligibility requirements of the independent expert and accredit the requirements established in the general provisions in financial matters of the Retirement Savings Systems issued by the Commission.

FOURTH.- Investment Companies shall observe the following diversification criteria until such time as the Commission verifies that the methodologies and elements of measurement for additional credit evaluation provided by rating agencies have been fully implemented in accordance with the general provisions in financial matters of the Retirement Savings Systems issued by the Commission:

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;

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, and

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.

For the purpose 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 in financial matters of the Retirement Savings Systems issued by the Commission shall apply.

FIFTH.- The "General Provisions establishing the investment regime to which specialized investment companies of retirement savings funds must be subject," published in the Official Gazette of the Federation on January 4, 2016, 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 repealed.

SIXTH.- 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 recomposition program, for its non-objection, in order to adjust their investment portfolios and comply with the investment limits defined in these provisions.

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

SEVENTH.- The submission of modifications to prospectuses and brochures resulting from the entry into force of these provisions shall be in terms of what is established in the general provisions in financial matters of the Retirement Savings Systems.

EIGHTH.- Until such time as the general provisions in matters of operations of the retirement savings systems referred to in the Fourteenth provision of these provisions are issued, Workers shall not be able to request the transfer of resources from one Basic Investment Company to another of their choice.

NINTH.- Structured Instruments that on the date of entry into force of these provisions form part of the investment portfolios of Basic Investment Companies may be held to maturity applying the concentration limit per issuance applicable at the time of their acquisition.

Mexico City, May 17, 2016.- Based on the provisions of articles 9, third paragraph, 11, and 12, fractions I, VIII, XIII, and XVI of the Law of the Retirement Savings Systems; 2, fraction III, 4, third and fourth paragraphs, and 8, first paragraph of the Internal Regulation of the National Commission of the Retirement Savings System,

the President of the National Commission of the Retirement Savings System,

Carlos

Ramírez Fuentes.- Signature.

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

mxA-1+

HR+1

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

mxAAA

HR AAA

To comply with what is provided in the Fourth provision of these provisions, Administrators must verify that at least one of the rating agencies issuing an opinion on the Investment Asset has at least ten years of experience performing these functions in the Mexican market.

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

mxA-1

HR1

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

mxAA+ / mxAA / mxAA-

HR AA+ / HR AA / HR AA-

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

mxA-2

HR2

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

mxA+

HR A+

mxA

HR A

mxA-

HR A-

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)

No aplica

3/M

STANDARD & POOR ' S

HR RATINGS DE MEXICO

mxA-3

HR3

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

mxBBB+

HR BBB+

mxBBB

HR BBB

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

mxA-3

HR3

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

mxBBB-

HR BBB-

mxBB+

HR BB+

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

ANNEX F 7

Ratings for Instruments denominated in Currencies.

Short-term Issuances

(Maturity up to one year)

MOODY ' S

FITCH IBCA

P-1

F1+ / F1

P-2

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

Aaa

AAA

Aa1/ Aa2 / Aa3

AA+/ AA /AA-

A1/ A2 / A3

A+/ A/ A-

Baa1

BBB+

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)

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 performing these functions in the Mexican market.

ANNEX G 8

Ratings for Instruments denominated in Currencies.

Short-term Issuances

(Maturity up to one year)

MOODY ' S

FITCH IBCA

P-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

Baa2/ Baa3

BBB/ BBB-

STANDARD & POOR ' S

HR RATINGS DE MEXICO

BBB/ BBB-

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

ANNEX H 9

Ratings for Instruments denominated in Currencies.

Medium and long-term Issuances

(Maturity greater than one year)

MOODY ' S

FITCH IBCA

Ba1/ Ba2

BB+/ BB

STANDARD & POOR ' S

HR RATINGS DE MEXICO

BB+/ BB

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

ANNEX I 10

Ratings for Subordinated Obligations denominated in Currencies. 11

Short-term Issuances

(Maturity up to one year)

MOODY ' S

FITCH IBCA

P-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

Ba3/ B1

BB-/ B+

STANDARD & POOR ' S

HR RATINGS DE MEXICO

BB-/ B+

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

Subordinated obligations as defined in fraction XLIX, subsections 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

P-1

F1+/F1

P-2

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

Aaa

AAA

Aa1/ Aa2/ Aa3

AA+/ AA/ AA-

A1/ A2 /A3

A+/ A/ A-

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)

ANNEX K 13

Ratings for Foreign Securities and for Foreign Counterparties

Short-term Issuances

(Maturity up to one year)

MOODY ' S

FITCH IBCA

P-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

Baa1 / Baa2 / Baa3

BBB+ / BBB / BBB-

STANDARD & POOR ' S

HR RATINGS DE MEXICO

BBB+ / BBB / BBB-

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

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, as applicable, the Valuation Society providing services to them, will 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 in 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, repo operations, and securities lending that are feasible to be acquired or operated by the Investment Company shall be referred to as the Permitted Assets or Permitted Asset in case referring to only one of these.

Each business day prior to the date of VaR calculation represents a possible scenario for the value of the factors that determine the price of the Permitted Assets. They shall be called Scenarios the 1,000 business days prior to the day of VaR calculation. From the information obtained in the Scenarios, an estimate of the distribution of prices 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 the Permitted Asset j on day h is expressed in terms of these factors as the valuation formula f:

To calculate the VaR of day h using historical data, the Administrator, or as applicable, the corresponding Valuation Society on behalf of the Administrator, will use the matrix of differences between the price of day h and the price of scenario i (i = 1, 2,...,1000) sent by the Price Provider. Administrators must stipulate in the contracts they enter into with the Price Provider that to calculate this matrix, the Price Provider follows the following steps:

Estimate the daily percentage variations that the risk factors, which influence the valuation of the Permitted Assets, had over the last 1,000 business days.

By multiplying the percentage variations of a risk factor by the value of the risk factor on day h, a sample of 1,000 possible observations of the value of the risk factor is obtained. By

For example, for risk factor F 1, we have:

From the observations generated for the risk factors, observations for the prices of the Permitted Assets are obtained using the corresponding valuation formula.

With these prices, the price difference matrix of 1000 x n is constructed, where n is the number of Permitted Assets. The element (i, j) of that matrix will be the following:

The price difference matrix calculated by the Price Provider must meet the criteria established in the general provisions in financial matters of the Retirement Savings Systems.

Calculation of VaR (Performed by the Administrator or, as applicable, by the corresponding Valuation Society)

The Administrator or, as applicable, the corresponding Valuation Society, will multiply the price difference matrix calculated by the Price Provider by the vector containing the number of shares or contracts, as applicable, per Permitted Asset that make up the Investment Society's portfolio. In this way, a vector of possible value changes (gains or losses) in the amount of said portfolio is obtained. In symbols,

For the case of Investment Societies, this vector will be divided by the Assets Managed by the Investment Society in question on day h,

, thus obtaining the returns with respect to the current portfolio; for the case of Investment Assets managed by each Mandatary, this vector will be divided by the Assets Managed by the respective Mandatary, excluding in both cases Structured Instruments. In symbols

The possible returns thus obtained are ordered from smallest to largest, with which an estimation of the distribution of returns is obtained and from it the VaR and Conditional Value at Risk on the assets determined according to the previous paragraph will be calculated.

The Commission must notify the Administrators about the additions or modifications to the scenarios that will remain fixed determined by the Risk Analysis Committee, one month in advance of the date of their application.

II.

Methodology to determine the scenario corresponding to the VaR applicable to Basic Investment Societies that correspond.

To observe the maximum VaR limit that corresponds to each investment society, the number of the scenario corresponding to the VaR of each Investment Society will be the E-th worst observation expressed in positive terms. In case that value is originally positive, it will not be considered that it is higher than the limit expressed in said provisions. The value of the scenario corresponding to the VaR will be computed according to the following methodology:

A reference portfolio (PR) is defined for each Basic Investment Society.

On date t, the 1000 loss/gain scenarios of the PR are calculated in accordance with the procedure described in this Annex. These scenarios will be used to compute the variables described below.

Where:

On date t, is the number of PR scenarios that exceed the regulatory VaR limit.

Considering the 30 most recent scenarios generated with the PR on date t, is the number of scenarios that exceed the regulatory VaR limit.

Considering the 60 most recent scenarios generated with the PR on date t, is the number of scenarios that exceed the regulatory VaR limit.

On date t is the number of the scenario corresponding to the VaR of the type of Investment Society in question.

This variable cannot be less than 26. Additionally, on the date of entry into force of this methodology, it takes a value equal to 26. That is,

It is the slack on day t.

This variable is defined as the difference between the number of the scenario corresponding to the VaR minus the number of PR scenarios that exceed the regulatory VaR limit. That is .

Then, the value of will be determined with the following policy:

If on date the slack has a value lower than 5 and in the last 30 natural days more than 5 scenarios are generated that exceed the regulatory VaR limit, then the number of the scenario corresponding to the VaR is increased by 5. Or,

If the slack is lower than 3, then the number of the scenario corresponding to the VaR is increased by 5.

If the slack is higher than 15 and in the last 60 natural days fewer than 5 scenarios were generated that exceed the regulatory VaR limit, then the number of the scenario corresponding to the VaR is reduced by 5.

If the conditions in a) or b) do not prevail, then the number of the scenario corresponding to the VaR remains unchanged.

The policy can be described symbolically in the following way:

Once the value of is determined on date t, the VaR of the portfolios corresponding to the type of Investment Society for which the PR was defined is calculated with this parameter. The Commission will notify the Administrators and, as applicable, the Valuation Societies, when in accordance with the procedure described above changes arise in the value of . In any case, on date t the value that will be in force on date t+1 will be notified.

The PR of each Basic Investment Society is computed assuming that the allowed Equity Income limit is fully exploited and that the rest of the portfolio is invested in a portfolio of fixed-income instruments.

Specifically, the PRs are constructed assuming that the percentage of the portfolio destined for investment in equity income is carried out completely in the Mexican Stock Exchange Price and Quotation Index. Similarly, it is assumed that the percentage of the portfolio destined for investment in fixed income is carried out 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 impose it, on the parameters used in the determination of the value of as well as in the PR to ensure that said portfolio continues to be representative of the investment opportunities of the type of Investment Society 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 the scenario corresponding to the VaR of each Investment Society that is 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 Societies

To calculate the Conditional Value at Risk Differential for each Investment Society considering only the Assets Managed by the Investment Society, the following will be observed:

The CVaR of each Investment Society is calculated, using the distribution of returns ordered from smallest to largest 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 Society is calculated, following the same procedure indicated in the previous numeral, but excluding for its computation 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 values of the CVaR will be computed, which will remain in force until the Risk Analysis Committee defines a new set of scenarios. The Risk Analysis Committee will evaluate and, as 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 set of different 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 it is necessary to analyze, in the latter case, the Commission will make known to the Administrators the scenarios applicable 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.

Foreign Equity Securities, or Real Estate Investment Vehicles acquired directly by Investment Societies in eligible capital markets, may only refer to the indices dictated by the independent expert referred to in the Ninth provision of these provisions that have a current approving 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, as applicable, Vehicles in accordance with what is established in the general provisions in financial matters of the Retirement Savings Systems and the general rules to which the information that administrators of retirement funds, specialized investment societies of retirement funds, receiving entities, and operating companies of the National SAR Database must submit to the National Commission of the Retirement Savings System shall be subject.

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

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

I. Index replication criteria and others

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

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

In case there are modifications in the denomination of the indices or sub-indices mentioned in this Annex, or if for their convenience it is intended to modify or include new indices or sub-indices in the list of indices that have an approving 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 of 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 Income Component

or to FIBRAs and Real Estate Investment Vehicles.

Section I. Calculation of investment exposure through Equity Income Components.

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

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

For the computation of the exposure referred to in this section, the debt component of the Notes nor of the Underlying-Linked Structures will not be considered.

I. Exposure of investments through Notes, Underlying-Linked Structures, or Equity Income Component:

To determine the exposure of the Investment Society's portfolio, as applicable, of the portfolios of the Mandataries that it has hired, when investing in Notes, Underlying-Linked Structures, or Equity Income Components, the 'Deltas' of Equity Income Instruments, Foreign Equity Securities, or Derivatives, referred to the Equity Income Components directly or through the Vehicles containing them, will be used.

The 'Delta' will be:

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

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

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

Where:

Is the amount exposed in the i-th share due to Note j, Underlying-Linked Structure j, or Equity Income Component j that make up the investment portfolio.

Is the Delta of the Vehicle, share, or Derivative due to Note j, Underlying-Linked Structure j, or Equity Income Component j, which contain the i-th share.

Is the number of titles that will be:

In the case of Vehicles: the number of titles of the Vehicles that contain the i-th share and that make up Note j, Underlying-Linked Structure j, or Equity Income Component j will be used.

In the case of Derivatives: the number of contracts of Note j, Underlying-Linked Structure j, or Equity Income Component j that contain the i-th share, multiplied by the size of the corresponding contracts, will be used.

In the case of shares: the number of i-th shares acquired in Note j, Underlying-Linked Structure j, or Equity Income Component j will be used.

For short positions through Derivatives, the number of contracts is expressed with a negative sign.

Is the Market Value, which will be:

In the case of Vehicles: it is the Market Value of the Vehicles that contain the i-th share and that make up Note j, Underlying-Linked Structure j, or Equity Income Component j, multiplied by the weight or relative weight associated with the i-th share within each vehicle.

In the case of shares: it is the Market Value of the i-th share that makes up Note j, Underlying-Linked Structure j, or Equity Income Component j.

In the case of Derivatives: they are the closing points of the underlying index of the Derivative, multiplied by the weight or relative weight associated with the i-th share.

Is the number of Vehicles, shares, and/or Derivatives different from Note j, Underlying-Linked Structure j, or Equity Income Component j referred to the i-th share.

In case the exposure amount ( ) is denominated in Foreign Currency, it must be converted into Mexican pesos using the exchange rate to value foreign currency operations.

II. Equity Income exposure in the Investment Society's portfolio or as applicable in each Mandatary that it has hired:

The portfolio's equity income exposure due to the acquisition of Notes, Underlying-Linked Structures, or Equity Income Components, will be calculated as follows:

The amount exposed (in absolute terms) in the i-th share in the portfolio is calculated by summing over all exposed amounts of Notes, Underlying-Linked Structures, or Equity Income Components that are referenced to the same i-th share and obtaining the absolute value of said sum. The above implies that compensation occurs between exposures on the same share considering independently on the one hand the investments directly managed by the Investment Society and on the other hand the investments managed by each Mandatary.

S 0

Is the number of distinct shares that make up the portfolio managed directly by the Investment Society.

Is the number of Mandataries contracted by the Investment Society

The total exposure to Equity Income in the Investment Society's portfolio, derived from the acquisition of Notes, Underlying-Linked Structures, and Equity Income Components of the Investment Societies, as a percentage of the Total Assets of the Investment Society that corresponds, must be less than or equal to the limits provided in these provisions.

Section II. Calculation of investment exposure through FIBRAs and Real Estate Investment Vehicles

The exposure of investments made through Notes acquired or structured, Underlying-Linked Structures, as well as Real Estate Investment Vehicles and FIBRAs, must be calculated using the procedure described in this section.

For the purposes of this section, Notes and Underlying-Linked Structures refer to Debt Instruments or Foreign Debt Securities whose returns are linked to FIBRAs and Real Estate Investment Vehicles.

For the computation of the exposure referred to in this section, the debt component of the Notes nor of the Underlying-Linked Structures will not be considered.

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

To determine the exposure of the Investment Society's portfolio, as applicable, of the portfolios of the Mandataries that it has hired, when investing in Notes, Underlying-Linked Structures, FIBRAs, or Real Estate Investment Vehicles, the 'Deltas' of Derivative Instruments, referred to the FIBRAs or Real Estate Investment Vehicles directly or through the Vehicles containing them, will be used.

The 'Delta' will be:

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

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

In the case of Vehicles: the number of titles of the Vehicles that contain the i-th FIBRA or the i-th Real Estate Investment Vehicle and that make up Note j, Underlying-Linked Structure j, FIBRA j, or Real Estate Investment Vehicle j will be used.

In the case of Derivatives: the number of contracts of Note j, Underlying-Linked Structure j, FIBRA j, or Real Estate Investment Vehicle j that contain the i-th FIBRA or the i-th Real Estate Investment Vehicle, multiplied by the size of the corresponding contracts, will be used.

In the case of FIBRAs and Real Estate Investment Vehicles: the number of titles of the i-th FIBRA or the i-th Real Estate Investment Vehicle will be used.

For short positions through Derivatives, the number of contracts is expressed with a negative sign.

Is the Market Value, which will be:

In the case of Vehicles: it is the Market Value of the Vehicles that contain the i-th FIBRA or the i-th Real Estate Investment Vehicle and that make up Note j, Underlying-Linked Structure j, FIBRA j, or Real Estate Investment Vehicle j, multiplied by the weight or relative weight associated with the i-th FIBRA or the i-th Real Estate Investment Vehicle, within each vehicle, as applicable.

In the case of Derivatives: they are the closing points of the underlying index of the Derivative, multiplied by the weight or relative weight associated with the i-th FIBRA or the i-th Real Estate Investment Vehicle.

In the case of FIBRAs and Real Estate Investment Vehicles: it is the Market Value of the i-th FIBRA or the i-th Real Estate Investment Vehicle.

Is the number of Vehicles, FIBRAs, Real Estate Investment Vehicles, and/or Derivatives different from Note j, Underlying-Linked Structure j, FIBRA j, or Real Estate Investment Vehicle j referred to the i-th FIBRA or the i-th Real Estate Investment Vehicle.

In case the exposure amount ( ) is denominated in Foreign Currency, it must be converted into Mexican pesos using the exchange rate to value foreign currency operations.

II. Exposure to FIBRAS and Real Estate Investment Vehicles in the Portfolio of the Investment Society or, where applicable, of each Mandatario it has hired:

The portfolio exposure to FIBRAS and Real Estate Investment Vehicles, due to the acquisition of Notes, Underlying-Linked Structures, FIBRAS, or Real Estate Investment Vehicles, shall be calculated as follows:

The exposed amount (in absolute terms) in the i-th FIBRA or the i-th Real Estate Investment Vehicle in the portfolio is calculated by summing all exposed amounts of the Notes, Underlying-Linked Structures, FIBRAS, or Real Estate Investment Vehicles referenced to the same i-th FIBRA or i-th Real Estate Investment Vehicle, as applicable, and obtaining the absolute value of said sum. This implies that exposures on the same FIBRA or the same Real Estate Investment Vehicle are offset, considering independently on one hand the investments directly managed by the Investment Society and on the other hand the investments managed by each Mandatario.

Where:

$E_{i}$ is the exposed amount (absolute) in the i-th FIBRA or the i-th Real Estate Investment Vehicle, in the portfolio of the Investment Society or, where applicable, in the portfolio of the Mandatario in question.

$E_{i,j}$ is the exposed amount in the i-th FIBRA or the i-th Real Estate Investment Vehicle, due to the j-th Note, j-th Underlying-Linked Structure, j-th FIBRA, or j-th Real Estate Investment Vehicle, which form the investment portfolio of the Investment Society or, where applicable, the portfolio of the Mandatario in question.

The portfolio exposure of the Investment Society or, where applicable, of each Mandatario contracted by the Investment Society to FIBRAS and Real Estate Investment Vehicles, is calculated by summing the exposed amounts of each of the FIBRAS or Real Estate Investment Vehicles that form the portfolio of the Investment Society or the portfolio of the corresponding Mandatario:

$E_{Total} = \sum_{i=1}^{N} E_{i}$

Where:

$E_{Total}$ is the exposure to FIBRAS and Real Estate Investment Vehicles, of the portfolio managed directly by the Investment Society or of the portfolio of the Mandatario in question.

$E_{i}$ is the exposed amount (absolute) in the i-th FIBRA or the i-th Real Estate Investment Vehicle.

$N$ is the number of distinct FIBRAS and Real Estate Investment Vehicles that form the portfolio managed directly by the Investment Society in question or the number of distinct FIBRAS and Real Estate Investment Vehicles that form the portfolio of the Mandatario in question.

Total Exposure to FIBRAS and Real Estate Investment Vehicles, in the Portfolio of the Investment Society.

The total portfolio exposure to FIBRAS and Real Estate Investment Vehicles, due to the acquisition of Notes, Underlying-Linked Structures, FIBRAS, or Real Estate Investment Vehicles, shall be calculated, according to the following Formula:

$ExpTotPort = \frac{\sum_{i=1}^{N_0} E_{i} + \sum_{k=1}^{M} \sum_{j=1}^{S_k} E_{k,j}}{Activo}$

Where:

$ExpTotPort$ is the total exposure to FIBRAS and Real Estate Investment Vehicles, in the portfolio of the Investment Society.

$Activo$ is the Total Assets of the Investment Society.

$S_k$ is the number of distinct FIBRAS and Real Estate Investment Vehicles that form the portfolio of the k-th Mandatario contracted by the Investment Society in question.

$N_0$ is the number of distinct FIBRAS and Real Estate Investment Vehicles that form the portfolio managed directly by the Investment Society.

$M$ is the number of Mandatarios contracted by the Investment Society.

The total exposure to FIBRAS and Real Estate Investment Vehicles, in the portfolio of the Investment Society, derived from the acquisition of Notes, Underlying-Linked Structures, FIBRAS, and Real Estate Investment Vehicles of the Investment Societies, as a percentage of the Total Assets of the corresponding Investment Society, must be less than or equal to the limits provided for in these provisions.

ANNEX O

Methodology for calculating the make-whole penalty (minusvalía).

I. The amount of the make-whole penalty (minusvalía) of the Investment Assets with which an Investment Society or, where applicable, a Mandatario contracted by it, fails to comply with the investment regime due to causes attributable to it or to the Mandatario, shall be calculated according to the following formula:

$M = \sum_{i=1}^{L} \sum_{x=1}^{A_i} (T_{i,x} \times V_{i,x})$

Where:

$M$ is the amount of the make-whole penalty (minusvalía) that the Administrator operating the Investment Society that fails to comply with the investment regime must make whole.

$L$ is the total number of limits (parameters) of the authorized investment regime that are breached on the date for which the make-whole penalty (minusvalía) is computed.

$A_i$ is the number of assets that breach the i-th limit (parameter) of the authorized investment regime on the date for which the make-whole penalty (minusvalía) is computed.

$V_{i,x}$ is the make-whole penalty (minusvalía) of asset x, with which some parameter of the authorized investment regime is breached on the date for which the make-whole penalty (minusvalía) is computed. For the calculation of this value, prices shall be used and the guidelines established for such purposes by the Valuation Committee referred to in Article 46 of the Law shall be followed, as well as the procedures described in the general provisions on financial matters of the Retirement Savings Systems issued by the Commission.

$T_{i,x}$ is the number of titles of asset x, corresponding to the amount that is in excess or deficit with respect to the amount permitted by the i-th limit (parameter) of the authorized investment regime, on the date for which the make-whole penalty (minusvalía) is computed.

Regarding the minimum limits applicable as referred to in the Fifteenth Provision of these provisions, the applicable sale price shall be used to determine that there is a make-whole penalty (minusvalía). In this case, it shall be considered that the Administrator causes a loss to the Investment Society, caused by the breach of regulatory limits, when it maintains a deficit with respect to said limits and the closing price of the traded asset is greater than the sale price, or where applicable, the valuation price of the previous day.

II. The amount of the make-whole penalty (minusvalía) that an Administrator must make whole in case it fails to comply, due to causes attributable to it, with the Value at Risk (VaR) limit provided for in the Twenty-Second Provision of these provisions, shall be calculated according to the following formula:

$M_{VaR} = N_{acc} \times V_{acc} \times P_{VaR}$

Where:

$M_{VaR}$ is the amount of the make-whole penalty (minusvalía) of the Investment Society in question, or of the portfolio managed by the Mandatario in question, that the Administrator must make whole.

$N_{acc}$ is the total number of shares held by the Workers for whom their resources are invested in the investment society for which the permitted VaR limit in the authorized investment regime is breached.

$V_{acc}$ is the make-whole penalty (minusvalía) of the share of the Investment Society on the day the VaR limit established in the authorized investment regime is breached.

$P_{VaR}$ is the proportion in which the VaR limit of the Investment Society in question is breached. This proportion is calculated with the following formula:

$P_{VaR} = \frac{VaR_{exceso}}{VaR_{max}}$

Where:

$VaR_{max}$ is the maximum value for the VaR, permitted in the authorized investment regime, provided for in the Twenty-Second Provision of these provisions, according to the Investment Society in question.

$VaR_{exceso}$ is the excess of the VaR with respect to the maximum value permitted for this limit (parameter) in the authorized investment regime of the Investment Society in question.

III. The amount of the make-whole penalty (minusvalía) that an Administrator must make whole in case it trades directly or through a Mandatario any value not permitted in the investment regime of the investment society in question, shall be calculated according to the following formula:

$M_{no_perm} = T_{x} \times V_{x}$

Where:

$M_{no_perm}$ is the amount of the make-whole penalty (minusvalía) that the Administrator must make whole.

$T_{x}$ is the number of titles acquired of asset x, which is not permitted in the investment regime of the Investment Society in question.

$V_{x}$ is the make-whole penalty (minusvalía) of asset x, which is not permitted in the authorized investment regime for the Investment Society in question. For the calculation of this value, prices shall be used and the guidelines established for such purposes by the Valuation Committee referred to in Article 46 of the Law shall be followed.

IV.

The amount of the make-whole penalty (minusvalía) that an Administrator must make whole in case it fails to comply, due to causes attributable to it, with the maximum limit of the Conditional Value at Risk Differential provided for in the Twenty-Third Provision of these provisions, shall be calculated according to the following formula:

$M_{CVaR} = N_{acc} \times V_{acc} \times P_{CVaR}$

$M_{CVaR}$ is the amount of the make-whole penalty (minusvalía) of the Investment Society in question, or of the portfolio managed by the Mandatario in question, that the Administrator must make whole.

$N_{acc}$ is the total number of shares held by the Workers for whom their resources are invested in the Investment Society for which the maximum limit of the Conditional Value at Risk Differential permitted in the authorized investment regime is breached.

$V_{acc}$ is the make-whole penalty (minusvalía) of the share of the Investment Society on the day the maximum limit of the Conditional Value at Risk Differential established in the authorized investment regime is breached.

$P_{CVaR}$ is the proportion in which the maximum limit of the Conditional Value at Risk Differential of the Investment Society in question is breached. This proportion is calculated with the following formula:

$P_{CVaR} = \frac{CVaR_{exceso}}{CVaR_{max}}$

Where:

$CVaR_{max}$ is the maximum value for the Conditional Value at Risk Differential, permitted in the authorized investment regime, provided for in the Twenty-Third Provision of these provisions, according to the Investment Society in question.

$CVaR_{exceso}$ is the excess of the Conditional Value at Risk Differential with respect to the maximum value permitted for this limit (parameter) in the authorized investment regime of the Investment Society in question.

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