EX-99 2 mxf8ksummrptsept2010.htm mxf8ksummrptsept2010.htm
 
 

The Mexico Fund, Inc.

Monthly Summary Report
September 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.
 
 
 
 
 
 
September 30, 2010
 
 
I.  The Mexico Fund Data
End of  Month
One Month Earlier
One Year Earlier
       
Total  Net Assets1 (million US$)
$372.59
$340.13
$390.98
NAV per share
$27.74
$25.29
$22.98
Closing price NYSE2
$25.28
$22.51
$21.53
% Premium (Discount)
(8.87%)
(10.99%)
(6.31%)
Shares traded per month2 (composite figures)
437,601
397,621
448,103
Outstanding shares3
13,432,295
13,449,289
17,013,315
Shares on Short Interest Position2
13,273
14,612
22,696
       
 
Note:  Past performance is no guarantee of future results.

 
II.  Performance4
1 Month
3 Months
6 Months
1 Year
         
Market price
12.39%
15.02%
3.80%
28.81%
NAV per share
9.69%
10.01%
0.58%
30.90%
Bolsa Index
10.32%
9.93%
-1.63%
22.33%
MSCI Mexico Index
10.64%
11.09%
0.44%
21.37%
         
 
2 Years
3 Years
5 Years
10 Years
         
Market price
33.77%
-3.82%
74.13%
356.72%
NAV per share
25.08%
-14.05%
63.19%
285.73%
Bolsa Index
16.77%
-4.50%
77.16%
294.03%
MSCI Mexico Index
15.22%
-10.55%
54.83%
237.41%

 
III.  The Mexican Stock Exchange
End of Month
One Month Earlier
One Year Earlier
       
Bolsa Index5
33,330.34
31,679.85
29,232.24
Daily avg. of million shares traded
268.5
275.7
263.2
Valuation Ratios6: P/E
20.92
20.05
29.45
                               P/BV
3.06
2.93
3.01
                               EV/EBITDA
8.74
8.41
8.29
Market capitalization (billion US$)
$449.36
$410.61
$344.10
 
______________________

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. Short interest position as of first fortnight of every month.
 
3 During September 2010, the Fund repurchased and cancelled 16,994 Fund shares at a weighted average price and discount of $23.70 and 11.45%, 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
4.43%
4.52%
4.48%
Six months
4.65%
4.71%
4.86%
One year
4.74%
4.77%
5.35%
       
Long-term Bonds
      
Three years
5.23%
5.38%
6.60%
Five years
N.A.
N.A.
7.50%
Ten years
6.25%
6.49%
8.00%
20 years
N.A.
6.69%
8.64%
30 years
7.23%
N.A.
N.A.
       
Currency Market8
      
Exchange Rate  (Ps/US$)
Ps. 12.5935
Ps. 13.2046
Ps. 13.4928
       
 
 
Month
 
Year to Date

Last 12 Months
Inflation Rates on Previous Month
      
Consumer Price Index9 (CPI)
0.28%
1.88%
3.68%

 
V.   Economic Comments.
 

According to results of the monthly poll conducted at the end of September 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 3.50% during 2010 and 2011, respectively. The inflation rate is estimated by analysts to be 4.33% for 2010 and 3.84% for 2011. The exchange rate of the peso against the dollar is expected to end 2010 at Ps. 12.66 and at Ps. 12.81 towards the end of 2011, while the interest rate for the 28-day Cetes (Treasury Bills) is estimated to be 4.56% and 5.25% 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 September 30, 2010 (Unaudited)                                                                                                                                                           
 
             
Percent of
Shares Held
      
Value
    
Net Assets
   
COMMON STOCK - 92.83%
          
 
  
Airports
          
  500,500  
Grupo Aeroportuario del Sureste, S.A.B. de C.V. Series B
     $2,377,410       0.64%  
  2,000,000  
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. Series B
     3,625,680       0.97  
            6,003,090         1.61  
     
Beverages
                
  1,986,000  
Fomento Económico Mexicano, S.A.B. de C.V. Series UBD
     10,099,134       2.71  
  700,000  
Grupo Modelo, S.A.B. de C.V. Series C
     3,847,540       1.03  
            13,946,674         3.74  
     
Building Materials
                
  23,850,000  
Cemex, S.A.B. de C.V. Series CPO
     20,415,532       5.48  
  1,333,700  
Grupo Cementos de Chihuahua, S.A.B. de C.V.
     4,236,154       1.14  
            24,651,686         6.62  
     
Chemical Products
                
  5,000,033  
Mexichem, S.A.B. de C.V.
     13,999,378       3.76  
                       
     
Commercial Banks
                
  1,039,700  
Banco Compartamos, S.A., Institución de Banca Múltiple. Series O
     6,631,921       1.78  
                       
     
Construction and Infrastructure
                
  3,000,000  
Empresas ICA, S.A.B. de C.V.
     7,306,150       1.96  
                       
     
Consumer Products
                
  1,866,000  
Kimberly-Clark de México, S.A.B. de C.V. Series A
     11,889,295       3.19  
                       
     
Financial Groups
                
  4,166,000  
Grupo Financiero Banorte, S.A.B. de C.V. Series O
     15,782,734       4.23  
                       
     
Food
                
  1,800,000  
Grupo Bimbo, S.A.B. de C.V. Series A
     13,192,520       3.54  
                       
     
Health Care
                
  4,000,000  
Genomma Lab Internacional, S.A.B. de C.V. Series B
     7,696,034       2.06  
                       
     
Holding Companies
                
  2,348,000  
Alfa, S.A.B. de C.V. Series A
     18,133,678       4.87  
                       
     
Housing
                
  909,100  
Urbi Desarrollos Urbanos, S.A.B. de C.V.
     1,893,492       0.51  
                       
     
Media
                
  6,400,000  
Grupo Televisa, S.A.B. Series CPO
     24,271,569       6.51  
                       
     
Mining
                
  10,000,000  
Grupo México, S.A.B. de C.V. Series B
     28,808,512       7.73  
  440,000  
Industrias Peñoles, S.A.B. de C.V.
     10,752,372       2.89  
            39,560,884         10.62  
                       
                       
     
Retail
                
  200,000  
First Cash Financial Services, Inc.
     5,550,006       1.49  
  2,000,000  
Grupo Comercial Chedraui, S.A.B. de C.V. Series B
     5,769,643       1.55  
  15,200,000  
Wal-Mart de México, S.A.B. de C.V. Series V
     38,116,171       10.23  
             49,435,820       13.27   


 
 
             
Percent of
  
Shares Held
      
Value
    
Net Assets
  
   
COMMON STOCK
            
 
  
Steel
            
  905,100  
Industrias CH, S.A.B. de C.V. Series B
     3,120,613       0.84  
                       
     
Stock Exchange
                
  6,700,000  
Bolsa Mexicana de Valores, S.A.B. de C.V. Series A
     11,241,593       3.02  
                       
     
Telecommunications Services
                
  27,550,000  
América Móvil, S.A.B. de C.V. Series L
     73,438,957       19.71  
  90,000  
NII Holdings, Inc.
     3,698,980       0.99  
            77,137,937        20.70   
                       
        Total Common Stock     $345,895,068        92.83%   
     
 
                
 
Securities
  
SHORT-TERM SECURITIES – 5.42%
            
Principal
Amount
                
 
  
Repurchase Agreements
            
$ 3,884,351  
BBVA Bancomer, S.A., 4.29%, dated 09/30/10, due 10/01/10 repurchase price $3,884,814, collateralized by Bonos del Gobierno Federal.
     $3,884,351       1.04%  
     
Time Deposits
                
     
Comerica Bank, 0.18%, dated 09/30/10, due 10/01/10
     16,304,523       4.38  
                       
     
Total Short-Term Securities
     20,188,874       5.42  
                       
     
Total Investments
     366,083,942       98.25  
                       
     
Other Assets in Excess of Liabilities
     6,508,261       1.75  
                       
     
Net Assets Equivalent to $27.74 per share on 13,432,295 shares of capital stock outstanding
     $372,592,203       100.00%  
                       




 
 
 

VII. The Mexico Fund, Inc. Charts
 

 

 
 

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