EX-99 2 mxfexhapr2011.htm mxfexhapr2011.htm
 

The Mexico Fund, Inc.

Monthly Summary Report
April 2011

 

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.
 
 
 
        
             April 30, 2011
             
I.  The Mexico Fund Data
  
End of  Month
  
One Month Earlier
  
One Year Earlier
             
Total  Net Assets1 (million US$)
  
$425.07
  
$424.16
  
$383.24
             
NAV per share
  
$31.76
  
$31.68
  
$28.12
             
Closing price NYSE2
  
$28.60
  
$29.00
  
$24.85
             
% Premium (Discount)
  
(9.95%)
  
(8.46%)
  
(11.63%)
             
Shares traded per month2 (composite figures)
  
418,111
  
414,448
  
763,330
             
Outstanding shares3
  
13,385,148
  
13,388,976
  
13,630,464
             
Shares on Short Interest Position2
  
31,401
  
11,458
  
6,786
 
Note: Past performance is no guarantee of future results.
 
 
 
II.  Performance4
  
1 Month
  
3 Months
  
6 Months
  
1 Year
                 
Market price
  
1.37%
  
5.03%
  
12.07%
  
27.82%
                 
NAV per share
  
2.79%
  
5.52%
  
12.75%
  
24.03%
                 
Bolsa Index
  
2.24%
  
5.39%
  
11.60%
  
21.10%
                 
MSCI Mexico Index
  
1.61%
  
4.77%
  
9.88%
  
20.21%
                 
                 
   
2 Years
  
3 Years
  
5 Years
  
10 Years
                 
Market price
  
139.37%
  
24.35%
  
68.96%
  
412.34%
                 
NAV per share
  
130.14%
  
9.60%
  
61.16%
  
385.86%
                 
Bolsa Index
  
103.27%
  
11.59%
  
72.71%
  
396.86%
                 
MSCI Mexico Index
  
99.99%
  
7.29%
  
49.25%
  
301.62%

 
______________________
 
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 April 2011, the Fund repurchased 3,828 shares in the open market at an average price of $28.29 and at an average discount of 9.75%.
 
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.
 
 
 
 

III.  The Mexican Stock Exchange
  
End of Month
  
One Month Earlier
  
One Year Earlier
             
Bolsa Index5
  
36,962.60
  
37,440.51
  
32,687.32
             
Daily avg. of million shares traded
  
220.5
  
226.1
  
281.8
             
Valuation Ratios6: P/E
  
18.48
  
19.16
  
18.43
             
                               P/BV
  
2.92
  
3.06
  
2.78
             
                               EV/EBITDA
  
9.57
  
9.19
  
8.64
             
Market capitalization (billion US$)
  
$531.01
  
$496.51
  
$428.85

 
 
IV.  The Mexican Economy.
     End of Month     One Month Earlier     One Year Earlier
   
 
  
 
  
 
Treasury Bills7
            
             
One month
  
4.28%
  
4.27%
  
4.44%
             
Six months
  
4.61%
  
4.57%
  
4.72%
             
One year
  
4.92%
  
4.75%
  
5.09%
             
             
Long-term Bonds
            
             
Three years
  
5.87%
  
5.90%
  
5.85%
             
Five years
  
6.45%
  
6.73%
  
6.63%
             
Ten years
  
7.28%
  
N.A.
  
7.54%
             
20 years
  
N.A.
  
8.30%
  
7.99%
             
30 years
  
8.50%
  
N.A.
  
N.A.
             
             
Currency Market8
            
             
Exchange Rate  (Ps/US$)
  
Ps. 11.4958
  
Ps. 11.9048
  
Ps. 12.3109
             
             
   
Month
  
Year to Date
  
Last 12 Months
Inflation Rates on Previous Month
            
             
Consumer Price Index9 (CPI)
  
0.19%
  
1.06%
  
3.04%

______________________
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

 
 
 
 
V.  Economic Comments.
 

According to results of the monthly poll conducted during April 2011 by Mexico’s Central Bank (Banxico), economic analysts of the private sector estimate that Mexico’s gross domestic product (GDP) will increase 4.37% during 2011 and 4.02% during 2012. The inflation rate is estimated by analysts to be 3.87% for 2011 and 3.80% for 2012. The exchange rate of the peso against the dollar is expected to end 2011 at Ps. 12.00 and at Ps. 12.32 towards the end of 2012, while the interest rate for the 28-day Cetes (Treasury Bills) is estimated to be 4.71% and 5.59% for the same periods. The complete results of this and past polls are available at Banxico’s website, located at www.banxico.org.mx.
 
 
 

 
VI.  Portfolio of Investments As of April 30, 2011 (Unaudited)
 

Shares Held
          
Percent of
   
COMMON STOCK  - 94.71%
  
Value
  
Net Assets
   
Airports
        
800,500
  
Grupo Aeroportuario del Sureste, S.A.B. de C.V. Series B
  
$4,739,995
  
1.11%
2,000,000
  
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. Series B
  
 4,199,795
  
0.99
       
8,939,790
  
2.10
 
  
Beverages
        
2,985,100
  
Fomento Económico Mexicano, S.A.B. de C.V. Series UBD
  
 18,813,001
  
4.43
700,000
  
Grupo Modelo, S.A.B. de C.V. Series C
  
 4,382,992
  
1.03
       
23,195,993
  
5.46
 
  
Building Materials
        
20,888,400
  
Cemex, S.A.B. de C.V. Series CPO
  
 18,134,121
  
4.27
             
 
  
Chemical Products
        
4,140,000
  
Mexichem, S.A.B. de C.V.
  
 15,755,754
  
3.71
             
 
  
Commercial Banks
        
4,150,000
  
Compartamos, S.A.B. de C.V.
  
 7,750,700
  
1.82
             
 
  
Construction and Infrastructure
        
3,000,000
  
Empresas ICA, S.A.B. de C.V.
  
 7,416,622
  
1.74
2,000,000
  
OHL México, S.A.B. de C.V.
  
 4,170,219
  
0.99
       
11,586,841
  
2.73
 
  
Consumer Products
        
2,200,000
  
Kimberly-Clark de México, S.A.B. de C.V. Series A
  
 13,631,587
  
3.21
             
 
  
Financial Groups
        
4,235,000
  
Grupo Financiero Banorte, S.A.B. de C.V. Series O
  
 21,355,882
  
5.02
             
 
  
Food
        
6,000,000
  
Grupo Bimbo, S.A.B. de C.V. Series A
  
 13,257,016
  
3.12
             
 
  
Health Care
        
4,000,000
  
Genomma Lab Internacional, S.A.B. de C.V. Series B
  
 10,010,613
  
2.36
             
 
  
Holding Companies
        
1,900,000
  
Alfa, S.A.B. de C.V. Series A
  
 28,493,885
  
6.70
             
 
  
Media
        
6,000,000
  
Grupo Televisa, S.A.B. Series CPO
  
 28,450,391
  
6.69
             
 
  
Mining
        
8,420,000
  
Grupo México, S.A.B. de C.V. Series B
  
 29,195,115
  
6.87
291,700
  
Industrias Peñoles, S.A.B. de C.V.
  
 11,374,366
  
2.67
       
40,569,481
  
9.54

 
 
Shares Held
            
   
COMMON STOCK
  
Value
  
Percent of
Net Assets
             
 
  
Retail
        
104,500
  
First Cash Financial Services, Inc.
  
4,100,624
  
0.97
2,000,000
  
Grupo Comercial Chedraui, S.A.B. de C.V. Series B
  
6,748,552
  
1.59
1,671,000
  
Grupo Famsa, S.A.B. de C.V. Series A
  
3,372,292
  
0.79
1,347,000
  
Organización Soriana, S.A.B. de C.V. Series B
  
4,652,949
  
1.09
1,620,000
  
El Puerto de Liverpool, S.A.B. de C.V. Series C-1
  
12,398,232
  
2.92
12,780,000
  
Wal-Mart de México, S.A.B. de C.V. Series V
  
40,088,276
  
9.43
       
71,360,925
  
16.79
 
  
Steel
        
905,100
  
Industrias CH, S.A.B. de C.V. Series B
  
3,608,338
  
0.85
             
 
  
Stock Exchange
        
4,920,000
  
Bolsa Mexicana de Valores, S.A.B. de C.V. Series A
  
10,605,404
  
2.49
             
 
  
Telecommunications Services
        
26,440,000
  
América Móvil, S.A.B. de C.V. Series L
  
75,876,024
  
17.85
             
   
Total Common Stock
  
$402,582,745
  
94.71%
 
 

Securities
Principal
Amount
  
SHORT-TERM SECURITIES – 5.36%
        
   
Repurchase Agreements
        
             
$18,360,040
  
BBVA Bancomer, S.A., 4.30%, dated 04/29/11, due 05/02/11 repurchase price $18,366,619 collateralized by Bonos del Gobierno Federal.
  
 
$18,360,040
  
 
4.32%
   
Time Deposits
        
   
Comerica Bank, 0.02%, dated 04/29/11, due 05/02/11
  
4,411,178
  
1.04
   
Total Short-Term Securities
  
22,771,218
  
5.36
   
Total Investments
  
425,353,963
  
100.07
   
Liabilities in Excess of Other Assets
  
(285,821)
  
(0.07)
   
Net Assets Equivalent to $31.76 per share on 13,385,148 shares of capital stock outstanding
  
 
$425,068,142
  
 
100.00%
 
 
 
 
 

 
VII. The Mexico Fund, Inc. Charts
 
 
 
 
 
 
 

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