EX-99 2 mxf8kexhmthsumrptoct2010.htm mxf8kexhmthsumrptoct2010.htm

 
The Mexico Fund, Inc.

Monthly Summary Report
October 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.
 

 

 
 

 
October 31, 2010
 
I.  The Mexico Fund Data
  
End of Month
    
One Month Earlier
    
One Year Earlier
  
                         
Total  Net Assets1 (million US$)
     $395.34       $372.59       $330.23  
                         
NAV per share
     $29.50       $27.74       $22.97  
                         
Closing price NYSE2
     $26.87       $25.28       $20.07  
                         
% Premium (Discount)
     (8.92%)       (8.87%)       (12.63%)  
                         
Shares traded per month2 (composite figures)
     989,955       437,601       716,678  
                         
Outstanding shares3
     13,401,745       13,432,295       14,377,701  
                         
Shares on Short Interest Position2
     11,338       13,273       16,194  
                         
 
Note: Past performance is no guarantee of future results.
 
 
II.  Performance4
  
1 Month
    
3 Months
    
6 Months
    
1 Year
  
                                 
Market price
     8.88%       15.94%       14.06%       47.67%  
NAV per share
     8.77%       12.42%       10.00%       40.08%  
Bolsa Index
     8.86%       12.77%       8.51%       32.74%  
MSCI Mexico Index
     8.59%       13.77%       9.40%       31.70%  
                                 
   
2 Years
    
3 Years
    
5 Years
    
10 Years
  
                                 
Market price
     119.89%       -1.74%       91.89%       395.41%  
NAV per share
     98.37%       -10.91%       82.95%       322.18%  
Bolsa Index
     79.15%       -1.98%       97.19%       330.77%  
MSCI Mexico Index
     81.24%       -6.31%       71.87%       258.92%  

 
III.  The Mexican Stock Exchange
  
End of Month
    
One Month Earlier
    
One Year Earlier
  
                         
Bolsa Index5
     35,568.22       33,330.34       28,646.03  
Daily avg. of million shares traded
     284.2       268.5       266.7  
Valuation Ratios6: P/E
     21.98       20.92       23.00  
                               P/BV
     3.10       3.06       2.48  
                               EV/EBITDA
     9.08       8.74       8.03  
Market capitalization (billion US$)
     $483.77       $449.36       $351.91  

 
________________________
  
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 October 2010, the Fund repurchased and cancelled 30,550 Fund shares at a weighted average price and discount of $26.27 and 10.0%, 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
     4.03%       4.43%       4.51%  
Six months
     4.55%       4.65%       4.92%  
One year
     4.65%       4.74%       5.39%  
                         
Long-term Bonds
                        
Three years
     5.04%       5.23%       6.57%  
Five years
     5.53%    
N.A.
       7.39%  
Ten years
  
N.A.
       6.25%       8.05%  
20 years
     6.71%    
N.A.
       8.55%  
30 years
     7.03%       7.23%       8.56%  
                         
Currency Market8
                        
Exchange Rate  (Ps/US$)
  
Ps. 12.3449
    
Ps. 12.5935
    
Ps. 13.1977
  
                         
   
     Month
    
Year to Date
    
Last 12 Months
  
Inflation Rates on Previous Month
                        
Consumer Price Index9 (CPI)
     0.52%       2.43%       3.70%  

 
V.   Economic Comments.
 

According to results of the monthly poll conducted at the end of October 2010 by Mexico’s Central Bank (Banxico), economic analysts of the private sector estimate that Mexico’s gross domestic product (GDP) will grow 4.75% and 3.52% during 2010 and 2011, respectively. The inflation rate is estimated by analysts to be 4.30% for 2010 and 3.73% for 2011. The exchange rate of the peso against the dollar is expected to end 2010 at Ps. 12.53 and at Ps. 12.69 towards the end of 2011, while the interest rate for the 28-day Cetes (Treasury Bills) is estimated to be 4.41% and 5.06% 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 October 31, 2010 (Unaudited)
 

Shares Held
      
Value
    
Percent of Net Assets
  
   
COMMON STOCK - 97.80%
            
 
  
Airports
            
  500,500  
Grupo Aeroportuario del Sureste, S.A.B. de C.V. Series B
   $ 2,513,264       0.64 %
  2,000,000  
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. Series B
     3,776,458       0.95  
                       
            6,289,722       1.59  
                       
     
Beverages
                
  1,986,000  
Fomento Económico Mexicano, S.A.B. de C.V. Series UBD
     10,936,361       2.77  
  700,000  
Grupo Modelo, S.A.B. de C.V. Series C
     3,921,619       0.99  
                       
            14,857,980       3.76  
                       
     
Building Materials
                
  21,150,000  
Cemex, S.A.B. de C.V. Series CPO
     18,537,453       4.69  
  1,328,600  
Grupo Cementos de Chihuahua, S.A.B. de C.V.
     4,294,173       1.09  
                       
            22,831,626       5.78  
                       
     
Chemical Products
                
  5,000,033  
Mexichem, S.A.B. de C.V.
     15,820,403       4.00  
                       
     
Commercial Banks
                
  1,039,700  
Banco Compartamos, S.A., Institución de Banca Múltiple. Series O
     7,368,497       1.86  
                       
     
Construction and Infrastructure
                
  3,000,000  
Empresas ICA, S.A.B. de C.V.
     7,910,149       2.00  
                       
     
Consumer Products
                
  2,200,000  
Kimberly-Clark de México, S.A.B. de C.V. Series A
     13,811,371       3.49  
                       
     
Financial Groups
                
  4,166,000  
Grupo Financiero Banorte, S.A.B. de C.V. Series O
     17,774,402       4.50  
                       
     
Food
                
  1,800,000  
Grupo Bimbo, S.A.B. de C.V. Series A
     13,881,036       3.51  
                       
     
Health Care
                
  4,000,000  
Genomma Lab Internacional, S.A.B. de C.V. Series B
     8,693,469       2.20  
                       
     
Holding Companies
                
  2,338,000  
Alfa, S.A.B. de C.V. Series A
     19,395,425       4.91  
                       
     
Media
                
  6,400,000  
Grupo Televisa, S.A.B. Series CPO
     28,757,463       7.27  
                       
     
Mining
                
  10,000,000  
Grupo México, S.A.B. de C.V. Series B
     32,896,176       8.32  
  440,000  
Industrias Peñoles, S.A.B. de C.V.
     12,470,154       3.16  
                       
            45,366,330       11.48  
                       
     
Retail
                
  200,000  
First Cash Financial Services, Inc.
     5,814,061       1.47  
  2,000,000  
Grupo Comercial Chedraui, S.A.B. de C.V. Series B
     6,472,308       1.63  
  1,276,900  
El Puerto de Liverpool, S.A.B. de C.V. Series C-1
     7,342,881       1.86  
  14,980,000  
Wal-Mart de México, S.A.B. de C.V. Series V
     40,990,563       10.37  
                       
            60,619,813       15.33  
                       
 
 

Shares Held
      
Value
    
Percent of
Net Assets
  
   
COMMON STOCK
            
 
  
Steel
            
  905,100  
Industrias CH, S.A.B. de C.V. Series B
     3,289,766       0.83  
                       
     
Stock Exchange
                
  6,000,000  
Bolsa Mexicana de Valores, S.A.B. de C.V. Series A
     10,916,249       2.76  
                       
     
Telecommunications Services
                
  29,750,000  
América Móvil, S.A.B. de C.V. Series L
     85,310,533       21.58  
  90,000  
NII Holdings, Inc.
     3,762,898       0.95  
                       
            89,073,431       22.53  
                       
     
Total Common Stock
   $ 386,657,132       97.80 %
                       


Securities
  
SHORT-TERM SECURITIES – 2.23%
            
Principal
Amount
                
 
  
Repurchase Agreements
            
  $1,527,694  
BBVA Bancomer, S.A., 4.26%, dated 10/29/10, due 11/01/10 repurchase price $1,528,236, collateralized by Bonos del Gobierno Federal.
   $ 1,527,694       0.39 %
     
Time Deposits
                
     
Comerica Bank, 0.16%, dated 10/29/10, due 11/01/10
     7,288,152       1.84  
                       
     
Total Short-Term Securities
     8,815,846       2.23  
                       
     
Total Investments
     395,472,978       100.03  
                       
     
Liabilities in Excess of Other Assets
     (135,670 )     (0.03 )
                       
     
Net Assets Equivalent to $29.50 per share on 13,401,745 shares of capital stock outstanding
   $ 395,337,308       100.00 %
                       



VII.  The Mexico Fund, Inc. Charts
 
 
 

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