EX-99 2 mexfundexh99.htm mexfundexh99.htm
 


The Mexico Fund, Inc.

Monthly Summary Report
July 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.
 

 
 
 
July 31, 2010
 
I.  The Mexico Fund Data
  
End of Month
  
One Month Earlier
  
One Year Earlier
             
Total Net Assets1 (million US$)
  
$361.44
  
$348.58
  
$366.65
NAV per share
  
$26.84
  
$25.85
  
$21.33
Closing price NYSE2
  
$23.76
  
$22.63
  
$19.11
% Premium (Discount)
  
(11.48%)
  
(12.46%)
  
(10.41%)
Shares traded per month2 (composite figures)
  
696,201
  
656,160
  
698,676
Outstanding shares3
  
13,464,377
  
13,483,023
  
17,191,278
Shares on Short Interest Position2
  
3,322
  
3,119
  
50,939
 
 Note: Past performance is no guarantee of future results.
 

 
II.  Performance4
  
1 Month
  
3 Months
  
6 Months
  
1 Year
                 
Market price
  
8.02%
  
-1.63%
  
15.15%
  
36.29%
NAV per share
  
6.44%
  
-2.15%
  
15.60%
  
36.45%
Bolsa Index
  
6.12%
  
-3.77%
  
10.09%
  
24.63%
MSCI Mexico Index
  
6.04%
  
-3.84%
  
10.79%
  
23.32%
                 
                 
   
2 Years
  
3 Years
  
5 Years
  
10 Years
Market price
  
0.65%
  
-10.61%
  
74.84%
  
346.93%
NAV per share
  
-5.72%
  
-18.61%
  
72.96%
  
256.57%
Bolsa Index
  
-6.77%
  
-8.94%
  
88.05%
  
267.16%
MSCI Mexico Index
  
-6.75%
  
-15.03%
  
64.53%
  
210.60%


 
III.  The Mexican Stock Exchange
  
End of Month
  
One Month Earlier
  
One Year Earlier
             
Bolsa Index5
  
32,308.70
  
31,156.97
  
27,043.50
Daily avg. of million shares traded
  
239.5
  
284.4
  
208.0
Valuation Ratios6: P/E
  
20.00
  
17.75
  
26.90
                               P/BV
  
2.92
  
2.97
  
2.81
                               EV/EBITDA
  
8.42
  
8.43
  
7.82
Market capitalization (billion US$)
  
$424.27
  
$404.81
  
$327.46
 
________________________
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 July 2010, the Fund repurchased and cancelled 18,646 Fund shares at a weighted average price and discount of $23.84 and 11.73%, 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%
  
4.59%
  
4.59%
  
Six months
  
4.69%
  
4.72%
  
4.80%
  
One year
  
4.79%
  
4.86%
  
5.12%
  
Long-term Bonds
              
Three years
  
5.43%
  
5.37%
  
6.16%
  
Five years
  
N.A.
  
6.23%
  
6.81%
  
Ten years
  
6.88%
  
N.A.
  
8.09%
  
20 years
  
7.31%
  
7.79%
  
8.80%
  
30 years
  
7.38%
  
7.69%
  
9.08%
  
Currency Market8
              
Exchange Rate  (Ps/US$)
  
Ps. 12.6453
  
Ps. 12.9409
  
Ps. 13.1917
  
               
   
 
Month
  
 
Year to Date
  
 
Last 12 Months
  
Inflation Rates on Previous Month
              
Consumer Price Index9 (CPI)
  
-0.03%
  
1.39%
  
3.69%
  

 
V.    Economic Comments.

According to results of the monthly poll conducted at the end of July 2010 by Mexico’s Central Bank (Banxico), economic analysts of the private sector estimate that Mexico’s gross domestic product (GDP) will grow 4.52% and 3.62% during 2010 and 2011, respectively. The inflation rate is estimated by analysts to be 4.59% for 2010 and 3.90% for 2011. The exchange rate of the peso against the dollar is expected to end 2010 at Ps. 12.57 and at Ps. 12.82 towards the end of 2011, while the interest rate for the 28-day Cetes (Treasury Bills) is estimated to be 4.61% and 5.73% 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 JULY 31, 2010 (UNAUDITED)
                                                                                                                         
 
 
Shares Held
          
 
Percent of
   
COMMON STOCK – 92.55%
  
Value
  
Net Assets
 
  
Airports
        
400,500
  
Grupo Aeroportuario del Sureste, S.A.B. de C.V. Series B
  
$2,136,899
  
0.59%
2,000,000
  
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. Series B
  
 3,327,719
  
0.92
             
       
5,464,618
  
1.51
             
 
  
Beverages
        
2,420,000
  
Fomento Económico Mexicano, S.A.B. de C.V. Series UBD
  
 11,828,917
  
3.27
1,047,500
  
Grupo Modelo, S.A.B. de C.V. Series C
  
 5,691,737
  
1.58
             
       
17,520,654
  
4.85
             
 
  
Building Materials
        
16,560,000
  
Cemex, S.A.B. de C.V. Series CPO
  
 15,714,930
  
4.35
1,388,700
  
Grupo Cementos de Chihuahua, S.A.B. de C.V.
  
 4,749,692
  
1.31
             
       
20,464,622
  
5.66
             
 
  
Chemical Products
        
5,000,033
  
Mexichem, S.A.B. de C.V.
  
 13,882,720
  
3.84
             
 
  
Commercial Banks
        
1,039,700
  
Banco Compartamos, S.A., Institución de Banca Múltiple Series O
  
 6,274,229
  
1.74
             
 
  
Construction and Infrastructure
        
3,000,000
  
Empresas ICA, S.A.B. de C.V.
  
 7,563,284
  
2.09
             
 
  
Consumer Products
        
1,866,000
  
Kimberly-Clark de México, S.A.B. de C.V. Series A
  
 11,803,701
  
3.27
             
 
  
Financial Groups
        
3,566,000
  
Grupo Financiero Banorte, S.A.B. de C.V. Series O
  
 13,973,200
  
3.87
             
 
  
Food
        
1,800,000
  
Grupo Bimbo, S.A.B. de C.V. Series A
  
 13,574,055
  
3.75
             
 
  
Health Care
        
2,500,000
  
Genomma Lab Internacional, S.A.B. de C.V. Series B
  
 8,522,929
  
2.36
             
 
  
Holding Companies
        
1,348,000
  
Alfa, S.A.B. de C.V. Series A
  
 10,515,110
  
2.91
2,000,000
  
Grupo Carso, S.A.B. de C.V. Series A1
  
 7,514,254
  
2.08
             
       
18,029,364
  
4.99
             
 
  
Housing
        
1,789,100
  
Urbi Desarrollos Urbanos, S.A.B. de C.V.
  
 3,470,588
  
0.96
             
 
  
Media
        
5,615,000
  
Grupo Televisa, S.A.B. Series CPO
  
 21,451,500
  
5.94
             
 
  
Mining
        
10,990,000
  
Grupo México, S.A.B. de C.V. Series B
  
 29,245,135
  
8.09
440,000
  
Industrias Peñoles, S.A.B. de C.V.
  
 9,204,115
  
2.55
             
       
38,449,250
  
10.64
             

 
Shares Held
          
Percent of
   
COMMON STOCK
  
Value
  
Net Assets
 
  
Retail
        
200,000
  
First Cash Financial Services, Inc.
  
 4,795,932
  
1.33
2,000,000
  
Grupo Comercial Chedraui, S.A.B. de C.V. Series B
  
 5,538,817
  
1.53
17,500,000
  
Wal-Mart de México, S.A.B. de C.V. Series V
  
 40,687,054
  
11.26
             
       
51,021,803
  
14.12
             
 
  
Steel
        
905,100
  
Industrias CH, S.A.B. de C.V. Series B
  
 3,255,277
  
0.90
             
 
  
Stock Exchange
        
6,700,000
  
Bolsa Mexicana de Valores, S.A.B. de C.V. Series A
  
 11,476,359
  
3.17
             
 
  
Telecommunications Services
        
27,550,000
  
América Móvil, S.A.B. de C.V. Series L
  
 68,257,890
  
18.89
             
   
Total Common Stock
  
$334,456,043
  
92.55%

 
Securities
    SHORT-TERM SECURITIES - 6.95%        
Principal
Amount
            
 
  
Repurchase Agreements
        
$21,262,022
  
BBVA Bancomer, S.A., 4.35%, dated 07/30/10, due 08/02/10 repurchase price $21,269,729, collateralized by Bonos del Gobierno Federal.
  
 
$21,262,022
  
 
5.88%
   
Time Deposits
        
   
Comerica Bank, 0.15%, dated 07/30/10, due 08/02/10
  
3,863,041
  
1.07
             
   
Total Short-Term Securities
  
25,125,063
  
6.95
             
   
Total Investments
  
359,581,106
  
99.50
             
   
Other Assets in Excess of Liabilities
  
1,787,347
  
0.50
             
   
Net Assets Equivalent to $26.84 per share on 13,464,377 shares of capital stock outstanding
  
 
$361,368,453
  
 
100.00%
             


 
 
 
 

VII. The Mexico Fund, Inc. Charts
 

 
 
 
 

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