EX-99 2 msfexhibit99.htm msfexhibit99.htm

 
The Mexico Fund, Inc.
 

Monthly Summary Report
June 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. 
 
 
  
 
 
June 30, 2010
 
I.   The Mexico Fund Data
End of  Month
  
One Month Earlier
  
One Year Earlier
Total  Net Assets1 (million US$)
$348.58
  
$355.46
  
$335.78
NAV per share
$25.85
  
$26.25
  
$19.53
Closing price NYSE2 
$22.63
  
$22.57
  
$17.39
% Premium (Discount)
(12.46%)
  
(12.82%)
  
(10.96%)
Shares traded per month2 (composite figures)
656,160
  
650,201
  
346,054
Outstanding shares3
13,483,023
  
13,540,323
  
17,195,278
Shares on Short Interest Position2
3,119
  
5,281
  
74,726
 
Note: Past performance is no guarantee of future results.
 
II.   Performance4
1 Month
  
3 Months
  
6 Months
  
1 Year
Market price
0.27%
  
-9.75%
  
5.77%
  
42.20%
NAV per share
-0.15%
  
-8.57%
  
4.11%
  
43.24%
Bolsa Index
-2.80%
  
-10.51%
  
-1.87%
  
30.14%
MSCI Mexico Index
-3.32%
  
-9.59%
  
-2.66%
  
28.39%
               
 
2 Years
  
3 Years
  
5 Years
  
10 Years
Market price
-13.78%
  
-15.55%
  
79.32%
  
322.35%
NAV per share
-19.14%
  
-23.61%
  
76.74%
  
237.29%
Bolsa Index
-15.58%
  
-16.57%
  
92.37%
  
258.45%
MSCI Mexico Index
-16.11%
  
-23.21%
  
69.55%
  
203.72%
 
III.  The Mexican Stock Exchange
End of Month
  
One Month Earlier
  
One Year Earlier
Bolsa Index5
31,156.97
  
32,038.53
  
24,368.38
Daily avg. of million shares traded
284.4
  
329.9
  
224.9
Valuation Ratios6: P/E
17.75
  
17.21
  
25.39
                               P/BV
2.97
  
2.88
  
2.63
                               EV/EBITDA
8.43
  
8.20
  
7.35

 
 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 June 2010, the Fund repurchased and cancelled 57,300 Fund shares at a weighted average price and discount of $22.82 and 12.98%, 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.
 
 
 
 
IV.  The Mexican Economy.
          
 
End of Month
  
One Month Earlier
  
One Year Earlier
Treasury Bills7
          
One month
4.59%
  
4.52%
  
4.98%
Six months
4.72%
  
4.72%
  
5.08%
One year
4.86%
  
4.96%
  
5.19%
Long-term Bonds
          
Three years
5.37%
  
5.73%
  
6.20%
Five years
6.23%
  
6.20%
  
7.45%
Ten years
N.A.
  
7.49%
  
8.22%
20 years
7.79%
  
N.A.
  
N.A.
30 years
7.69%
  
8.20%
  
9.04%
Currency Market8
          
Exchange Rate  (Ps/US$)
Ps. 12.9409
  
Ps. 12.9346
  
Ps. 13.1722
           
 
 
Month
  
 
Year to Date
  
 
Last 12 Months
Inflation Rates on Previous Month
          
Consumer Price Index9 (CPI)
-0.63%
  
1.42%
  
3.92%

 
V.  Economic Comments
 

According to results of the monthly poll conducted at the end of June 2010 by Mexico’s Central Bank (Banxico), economic analysts of the private sector estimate that Mexico’s gross domestic product (GDP) will grow 4.37% and 3.65% during 2010 and 2011, respectively. The inflation rate is estimated by analysts to be 4.66% for 2010 and 3.92% for 2011. The exchange rate of the peso against the dollar is expected to end 2010 at Ps. 12.50 and at Ps. 12.78 towards the end of 2011, while the interest rate for the 28-day Cetes (Treasury Bills) is estimated to be 4.74% and 5.76% for the same periods. The complete results of this and past polls are available at Banxico’s website, located at www.banxico.org.mx.
 

 
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 June 30, 2010 (Unaudited)
 

Shares Held
        
Percent of
   
COMMON STOCK – 92.04%
Value
  
Net Assets
 
  
Airports
      
2,000,000
  
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. Series B
$3,157,431
  
0.91%
838,500
  
Grupo Aeroportuario del Sureste, S.A.B. de C.V. Series B
 3,809,920
  
1.09
           
     
6,967,351
  
2.00
           
 
  
Beverages
      
2,420,000
  
Fomento Económico Mexicano, S.A.B. de C.V. Series UBD
 10,474,094
  
3.00
1,047,500
  
Grupo Modelo, S.A.B. de C.V. Series C
 5,170,761
  
1.48
           
     
15,644,855
  
4.48
           
 
  
Building Materials
      
16,560,000
  
Cemex, S.A.B. de C.V. Series CPO
 16,136,559
  
4.63
1,482,200
  
Grupo Cementos de Chihuahua, S.A.B. de C.V.
 5,068,222
  
1.45
           
     
21,204,781
  
6.08
           
 
  
Chemical Products
      
5,000,033
  
Mexichem, S.A.B. de C.V.
 12,962,862
  
3.72
           
 
  
Commercial Banks
      
1,039,700
  
Banco Compartamos, S.A., Institución de Banca Múltiple. Series O
 5,468,892
  
1.57
           
 
  
Construction and Infrastructure
      
3,000,000
  
Empresas ICA, S.A.B. de C.V.
 7,045,105
  
2.02
           
 
  
Consumer Products
      
1,866,000
  
Kimberly-Clark de México, S.A.B. de C.V. Series A
 10,775,617
  
3.09
           
 
  
Financial Groups
      
3,566,000
  
Grupo Financiero Banorte, S.A.B. de C.V. Series O
 13,816,600
  
3.96
           
 
  
Food
      
1,800,000
  
Grupo Bimbo, S.A.B. de C.V. Series A
 12,788,291
  
3.67
           
 
  
Health Care
      
2,500,000
  
Genomma Lab Internacional, S.A.B. de C.V. Series B
 8,297,336
  
2.38
           
 
  
Holding Companies
      
1,348,000
  
Alfa, S.A.B. de C.V. Series A
 10,081,172
  
2.89
2,000,000
  
Grupo Carso, S.A.B. de C.V. Series A1
 6,355,045
  
1.82
           
     
16,436,217
  
4.71
           
 
  
Housing
      
1,789,100
  
Urbi Desarrollos Urbanos, S.A.B. de C.V.
 3,308,361
  
0.95
           
 
  
Media
      
5,615,000
  
Grupo Televisa, S.A.B. Series CPO
 19,607,744
  
5.63
           
 
  
Mining
      
10,990,000
  
Grupo México, S.A.B. de C.V. Series B
 25,901,985
  
7.43
440,000
  
Industrias Peñoles, S.A.B. de C.V.
 8,572,943
  
2.46
           
     
34,474,928
  
9.89
           
 
 
 

 
Shares Held
        
Percent of
   
COMMON STOCK
Value
  
Net Assets
 
  
Retail
      
200,000
  
First Cash Financial Services, Inc.
 4,359,975
  
1.25
2,000,000
  
Grupo Comercial Chedraui, S.A.B. de C.V. Series B
 5,296,386
  
1.52
18,500,000
  
Wal-Mart de México, S.A.B. de C.V. Series V
 40,943,057
  
11.75
           
     
50,599,418
  
14.52
 
  
Steel
      
905,100
  
Industrias CH, S.A.B. de C.V. Series B
 3,055,724
  
0.88
           
 
  
Stock Exchange
      
6,700,000
  
Bolsa Mexicana de Valores, S.A.B. de C.V. Series A
 10,447,960
  
3.00
           
 
  
Telecommunications Services
      
28,550,000
  
América Móvil, S.A.B. de C.V. Series L
 67,928,390
  
19.49
           
   
Total Common Stock
$320,830,432
  
92.04%
           

Securities
  
SHORT-TERM SECURITIES  - 8.09%
      
Principal
Amount
          
 
  
Repurchase Agreements
      
$20,317,719
  
BBVA Bancomer, S.A., 4.30%, dated 06/30/10, due 07/01/10 repurchase price $20,320,146, collateralized by Bonos del Gobierno Federal.
 
 
$20,317,719
  
 
 
5.83%
   
Time Deposits
      
   
Comerica Bank, 0.01%, dated 06/30/10, due 07/01/10
7,877,106
  
2.26
           
   
Total Short-Term Securities
28,194,825
  
8.09
           
   
Total Investments
349,025,257
  
100.13
           
   
Other Liabilities in Excess of Assets
(447,685)
  
(0.13)
           
   
Net Assets Equivalent to $25.85 per share on 13,483,023 shares of capital stock outstanding
$348,577,572
  
100.00%
           
 
 
 
 

VII. The Mexico Fund, Inc. Charts
 
 
 
 
 
 

 

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