EX-99.1 2 mexicofundsummaryreport.htm MONTHLY SUMMARY REPORT AUGUST 2010 mexicofundsummaryreport.htm
 
 

 

 
The Mexico Fund, Inc.

 
Monthly Summary Report
August 2010

 

 
Prepared By:

 
Impulsora del Fondo México, sc
Investment Advisor to the Fund

 

 
 

 

 

 

 
www.themexicofund.com

 

 

 
The information presented in this report has been derived from the sources indicated. Neither The Mexico Fund, Inc. nor its Adviser, Impulsora del Fondo México, S.C., has independently verified or confirmed the information presented herein.
 

 

 
 
 
 

 
August 31, 2010
 
I. The Mexico Fund Data
End of  Month
One Month Earlier
One Year Earlier
Total  Net Assets1 (million US$)
$340.13
$361.44
$379.23
NAV per share
$25.29
$26.84
$22.29
Closing price NYSE2
$22.51
$23.76
$20.23
% Premium (Discount)
(10.99%)
(11.48%)
(9.24%)
Shares traded per month2 (composite figures)
397,621
696,201
783,158
Outstanding shares3
13,449,289
13,464,377
17,013,315
Shares on Short Interest Position2
14,612
3,322
32,957
 
Note: Past performance is no guarantee of future results.
 

 
II. Performance4
1 Month
3 Months
6 Months
1 Year
Market price
-5.26%
2.61%
3.03%
21.97%
NAV per share
-5.77%
0.14%
0.88%
23.03%
Bolsa Index
-6.10%
-3.14%
-3.14%
13.97%
MSCI Mexico Index
-5.31%
-2.92%
-0.29%
11.82%
         
 
2 Years
3 Years
5 Years
10 Years
Market price
1.75%
-11.27%
72.79%
275.46%
NAV per share
-3.97%
-19.70%
66.55%
223.93%
Bolsa Index
-6.15%
-12.74%
81.91%
231.03%
MSCI Mexico Index
-7.75%
-18.43%
57.81%
186.34%

 
III. The Mexican Stock Exchange
End of Month
One Month Earlier
One Year Earlier
Bolsa Index5
31,679.85
32,308.70
28,129.95
Daily avg. of million shares traded
275.7
239.5
274.4
Valuation Ratios6: P/E
20.05
20.00
27.91
                               P/BV
2.93
2.92
2.92
                               EV/EBITDA
8.41
8.42
8.07
Market capitalization (billion US$)
$410.61
$424.27
$340.19
       
 
 
 
 
 
 
IV. The Mexican Economy.
      
 
End of Month
One Month Earlier
One Year Earlier
Treasury Bills7
      
One month
4.52%
4.59%
4.49%
Six months
4.71%
4.69%
4.78%
One year
4.77%
4.79%
5.13%
Long-term Bonds
      
Three years
5.38%
5.43%
6.46%
Five years
N.A.
N.A.
7.33%
Ten years
6.49%
6.88%
N.A.
20 years
6.69%
7.31%
8.66%
30 years
N.A.
7.38%
9.02%
Currency Market8
      
Exchange Rate  (Ps/US$)
Ps. 13.2046
Ps. 12.6453
Ps. 13.3633
       
 
 
Month
 
Year to Date
 
Last 12 Months
Inflation Rates on Previous Month
      
Consumer Price Index9 (CPI)
0.22%
1.61%
3.64%

 
V. Economic Comments.
 

According to results of the monthly poll conducted at the end of August 2010 by Mexico’s Central Bank (Banxico), economic analysts of the private sector estimate that Mexico’s gross domestic product (GDP) will grow 4.62% and 3.58% during 2010 and 2011, respectively. The inflation rate is estimated by analysts to be 4.43% for 2010 and 3.82% for 2011. The exchange rate of the peso against the dollar is expected to end 2010 at Ps. 12.66 and at Ps. 12.87 towards the end of 2011, while the interest rate for the 28-day Cetes (Treasury Bills) is estimated to be 4.58% and 5.46% for the same periods. The complete results of this and past polls are available at Banxico’s website, located at www.banxico.org.mx.
 

 
1 Source: Impulsora del Fondo México, S.C. (Impulsora). Impulsora utilizes the spot exchange rate, provided by Bloomberg, to calculate the Fund's Net Asset Value per share (NAV). The NAV is published every business day on the Fund’s website www.themexicofund.com.
 
2 Source: New York Stock Exchange
 
3 During August 2010, the Fund repurchased and cancelled 15,088 Fund shares at a weighted average price and discount of $22.66 and 11.24%, respectively.
 
4 Sources: Lipper, Inc., Bloomberg and Impulsora del Fondo México, S.C. Periods ended on the last US business day of the date of this report. Figures calculated using the dividend reinvestment criteria.
 
5 Source: Mexican Stock Exchange
 
6 Source: Impulsora del Fondo México, S.C. Figures represent the average obtained from a representative sample of companies listed on the Bolsa. P/E refers to Price/Earnings, P/BV refers to Price/Book Value and EV/EBITDA refers to Enterprise Value/Earnings Before Interests, Taxes, Depreciation and Amortization.
 
7 Monthly average of weekly auctions as published by Banco de México. N.A. means no auction for such instrument was scheduled for this month.
 
8 Sources: Bloomberg and Banco de México
9 Source: Banco de México

 
 
 

VI. Portfolio of Investments As of August 31, 2010 (Unaudited)                                                                                                                                                           
 
 
 
 
      
Percent of
Shares Held
  
Value
  
Net Assets
 
COMMON STOCK – 93.42%
      
 
Airports
      
800,500    
Grupo Aeroportuario del Sureste, S.A.B. de C.V. Series B
$3,254,839
  
0.96%
2,000,000    
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. Series B
2,982,294
  
0.87
   
6,237,133
  
1.83
         
 
Beverages
      
1,986,000    
Fomento Económico Mexicano, S.A.B. de C.V. Series UBD
9,721,994
  
2.86
700,000    
Grupo Modelo, S.A.B. de C.V. Series C
3,717,189
  
1.09
   
13,439,183
  
3.95
         
 
Building Materials
      
21,560,000    
Cemex, S.A.B. de C.V. Series CPO
16,784,817
  
4.94
1,335,400    
Grupo Cementos de Chihuahua, S.A.B. de C.V.
4,296,063
  
1.26
   
21,080,880
  
6.20
         
 
Chemical Products
      
5,000,033    
Mexichem, S.A.B. de C.V.
12,866,813
  
3.78
         
 
Commercial Banks
      
1,039,700    
Banco Compartamos, S.A., Institución de Banca Múltiple. Series O
5,725,019
  
1.68
         
 
Construction and Infrastructure
      
3,000,000    
Empresas ICA, S.A.B. de C.V.
6,856,701
  
2.02
         
 
Consumer Products
      
1,866,000    
Kimberly-Clark de México, S.A.B. de C.V. Series A
10,796,419
  
3.17
         
 
Financial Groups
      
4,166,000    
Grupo Financiero Banorte, S.A.B. de C.V. Series O
14,982,911
  
4.41
         
 
Food
      
1,800,000    
Grupo Bimbo, S.A.B. de C.V. Series A
12,344,789
  
3.63
         
 
Health Care
      
5,000,000    
Genomma Lab Internacional, S.A.B. de C.V. Series B
9,189,979
  
2.70
         
 
Holding Companies
      
2,348,000    
Alfa, S.A.B. de C.V. Series A
16,126,208
  
4.74
         
 
Housing
      
1,139,100    
Urbi Desarrollos Urbanos, S.A.B. de C.V.
2,141,107
  
0.63
         
 
Media
      
6,400,000    
Grupo Televisa, S.A.B. Series CPO
23,729,912
  
6.98
         
 
Mining
      
10,000,000    
Grupo México, S.A.B. de C.V. Series B
25,627,433
  
7.53
440,000    
Industrias Peñoles, S.A.B. de C.V.
9,282,099
  
2.73
   
34,909,532
  
10.26
         
 
Retail
      
200,000    
First Cash Financial Services, Inc.
4,771,973
  
1.40
2,000,000    
Grupo Comercial Chedraui, S.A.B. de C.V. Series B
5,513,230
  
1.62
17,500,000    
Wal-Mart de México, S.A.B. de C.V. Series V
39,109,477
  
11.50
   
49,394,680
  
14.52
         

 
 
 


 
 
      
Percent of
Shares Held
  
Value
  
Net Assets
 
COMMON STOCK
      
 
Steel
      
905,100    
Industrias CH, S.A.B. de C.V. Series B
3,190,737
  
0.94
         
 
Stock Exchange
      
6,700,000    
Bolsa Mexicana de Valores, S.A.B. de C.V. Series A
10,432,122
  
3.07
         
 
Telecommunications Services
      
27,550,000    
América Móvil, S.A.B. de C.V. Series L
64,302,667
  
18.91
 
Total Common Stock
$317,746,792
  
93.42%
         

 

 

 
Securities  
SHORT-TERM SECURITIES – 7.62%
      
Principal  
Amount  
        
 
Repurchase Agreements
      
$19,650,297    
BBVA Bancomer, S.A., 4.32%, dated 08/31/10, due 09/01/10 repurchase price $19,652,655, collateralized by Bonos del Gobierno Federal.
 
 
$19,650,297
  
 
 
5.78%
 
Time Deposits
      
 
Comerica Bank, 0.19%, dated 08/31/10, due 09/01/10
6,276,581
  
1.84
 
Total Short-Term Securities
25,926,878
  
7.62
 
Total Investments
343,673,670
  
101.04
 
Other Liabilities in Excess of Assets
(3,541,823)
  
(1.04)
 
Net Assets Equivalent to $25.29 per share on 13,449,289 shares of capital stock outstanding
$340,131,847
  
100.00%
         

 

 

 

 
 
 

VII. The Mexico Fund, Inc. Charts
 

 
 

 

 

 
 

 
 
 
 
VII. The Mexico Fund, Inc. Charts (continued)