EX-99 2 mxf8kexh.htm mxf8kexh.htm
 
 

 
The Mexico Fund, Inc.

Monthly Summary Report
July 2012

 

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, 2012
  
   
         
I.  The Mexico Fund Data
End of Month
One Month Earlier
One Year Earlier
  
         
Total  Net Assets1 (million US$)
$366.24
$369.34
$399.36
  
         
NAV per share
$27.41
$27.64
$29.89
  
         
Closing price NYSE2
$25.23
$24.94
$27.03
  
         
% Premium (Discount)
(7.94%)
(9.77%)
(9.57%)
  
         
Shares traded per month2 (composite figures)
673,136
466,939
638,660
  
         
Outstanding shares3
13,362,856
13,362,856
13,362,856
  
         
Shares on Short Interest Position2
15,240
14,801
8,921
  
 
Note: Past performance is no guarantee of future results.

 
 
II.  Performance4
1 Month
3 Months
6 Months
1 Year
  
           
Market price
3.57%
5.09%
12.11%
5.37%
  
           
NAV per share
1.28%
3.30%
10.73%
2.55%
  
           
Bolsa Index
1.50%
0.70%
6.46%
-0.45%
  
           
MSCI Mexico Index
1.20%
0.78%
7.60%
1.45%
  
           
           
 
2 Years
3 Years
5 Years
10 Years
  
           
Market price
33.11%
81.42%
18.99%
417.63%
  
           
NAV per share
25.49%
71.23%
2.14%
424.81%
  
           
Bolsa Index
19.52%
48.96%
8.84%
396.27%
  
           
MSCI Mexico Index
21.99%
50.44%
3.66%
333.65%
  

 
 
 
________________________
 
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 July 2012, the Fund did not repurchase any of its own shares in the open market.
 
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. Performance figures for the Fund take into account the reinvestment of distributions; however, performance figures for the Bolsa Index and MSCI Mexico Index do not.
 
 
 
 

 
III.  The Mexican Stock Exchange
End of Month
One Month Earlier
One Year Earlier
  
         
Bolsa Index5
40,704.28
40,199.55
35,999.30
  
         
Daily avg. of million shares traded
280.4
357.3
318.3
  
         
Valuation Ratios6: P/E
19.31
18.45
19.76
  
         
                               P/BV
3.25
2.96
2.77
  
         
                               EV/EBITDA
9.02
9.04
8.32
  
         
Market capitalization (billion US$)
$512.38
$493.31
$519.91
  




IV.  The Mexican Economy.
End of Month
One Month Earlier
One Year Earlier
  
         
Treasury Bills7
        
         
One month
4.15%
4.34%
4.14%
  
         
Six months
4.51%
4.53%
4.49%
  
         
One year
4.58%
4.60%
4.64%
  
         
Long-term Bonds
        
         
Three years
4.71%
4.72%
5.59%
  
         
Five years
N.A.
4.79%
N.A.
  
         
Ten years
5.12%
5.94%
6.90%
  
         
20 years
N.A.
6.61%
N.A.
  
         
30 years
6.22%
N.A.
N.A.
  
         
Currency Market8
        
         
Exchange Rate  (Ps/US$)
Ps. 13.3291
Ps. 13.3608
Ps. 11.7354
  
         
 
 
Month
 
Year to Date

Last 12 Months
  
Inflation Rates on Previous Month
        
         
Consumer Price Index9 (CPI)
0.46%
0.80%
4.34%
  

 
________________________
 
 
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 July 2012 by Mexico’s Central Bank (Banxico), economic analysts of the private sector estimate that Mexico’s gross domestic product (GDP) will increase 3.71% during 2012 and 3.40% during 2013. The inflation rate is estimated by analysts to be 3.91% for 2012 and 3.65% for 2013. The exchange rate of the peso against the dollar is expected to end 2012 at Ps. 13.09 and at Ps. 12.92 towards the end of 2013, while the interest rate for the 28-day Cetes (Treasury Bills) is estimated to be 4.37% and 4.61% 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 July 31, 2012 (Unaudited)


           
Percent of
Shares Held
  
COMMON STOCK  - 98.17%
  
Value
  
Net Assets
   
Airports
        
1,000,000
  
Grupo Aeroportuario del Sureste, S.A.B. de C.V. Series B
  
$8,896,325
  
2.43%
             
 
  
Beverages
        
1,865,000
  
Arca Continental, S.A.B. de C.V.
  
 11,711,256
  
3.20
430,000
  
Coca-Cola Femsa, S.A.B. de C.V. Series L
  
 4,780,000
  
1.30
3,300,000
  
Fomento Económico Mexicano, S.A.B. de C.V. Series UBD
  
 28,174,445
  
7.69
1,700,000
  
Grupo Modelo, S.A.B. de C.V. Series C
  
 15,294,656
  
4.18
       
59,960,357
  
16.37
 
  
Building Materials
        
22,530,000
  
Cemex, S.A.B. de C.V. Series CPO
  
 15,685,860
  
4.28
             
 
  
Chemical Products
        
3,054,545
  
Alpek, S.A.B. de C.V. Series A
  
 7,468,443
  
2.04
3,630,396
  
Mexichem, S.A.B. de C.V.
  
 17,167,240
  
4.69
       
24,635,683
  
6.73
 
  
Construction and Infrastructure
        
3,000,000
  
Empresas ICA, S.A.B. de C.V.
  
 4,980,832
  
1.36
             
 
  
Consumer Products
        
5,500,000
  
Kimberly-Clark de México, S.A.B. de C.V. Series A
  
 11,471,142
  
3.13
             
 
  
Financial Groups
        
1,470,000
  
Banregio Grupo Financiero, S.A.B. de C.V. Series O
  
 5,024,585
  
1.37
3,600,000
  
Grupo Financiero Banorte, S.A.B. de C.V. Series O
  
 19,232,806
  
5.25
       
24,257,391
  
6.62
 
  
Food
        
4,820,000
  
Grupo Bimbo, S.A.B. de C.V. Series A
  
 11,976,683
  
3.27
1,550,000
  
Grupo Herdez, S.A.B. de C.V.
  
 3,773,511
  
1.03
       
15,750,194
  
4.30
 
  
Health Care
        
3,600,000
  
Genomma Lab Internacional, S.A.B. de C.V. Series B
  
 7,240,999
  
1.98
             
 
  
Holding Companies
        
1,209,000
  
Alfa, S.A.B. de C.V. Series A
  
 19,395,193
  
5.29
1,620,000
  
Grupo Carso, S.A.B. de C.V. Series A1
  
 5,589,560
  
1.53
       
24,984,753
  
6.82
 
  
Housing
        
3,010,000
  
Urbi Desarrollos Urbanos, S.A.B. de C.V.
  
 1,756,893
  
0.48
             
 
  
Media
        
3,900,000
  
Grupo Televisa, S.A.B. Series CPO
  
 17,751,611
  
4.85
             
 
  
Mining
        
6,250,000
  
Grupo México, S.A.B. de C.V. Series B
  
 17,480,550
  
4.77
105,500
  
Industrias Peñoles, S.A.B. de C.V.
  
 4,337,506
  
1.19
       
21,818,056
  
5.96
 
 
 

 
           
Percent of
Shares Held
  
COMMON STOCK
  
Value
  
Net Assets
 
  
Retail
        
2,550,000
  
Controladora Comercial Mexicana, S.A. de C.V. Series UBC
  
5,739,322
  
1.57
80,000
  
First Cash Financial Services, Inc.
  
3,208,019
  
0.88
1,300,000
  
El Puerto de Liverpool, S.A.B. de C.V. Series C-1
  
10,149,072
  
2.77
2,740,000
  
Grupo Comercial Chedraui, S.A.B. de C.V. Series B
  
7,166,005
  
1.96
9,000,000
  
Wal-Mart de México, S.A.B. de C.V. Series V
  
25,435,326
  
6.94
       
51,697,744
  
14.12
 
  
Steel
        
315,400
  
Ternium, S.A.
  
6,165,978
  
1.68
             
 
  
Stock Exchange
        
3,200,000
  
Bolsa Mexicana de Valores, S.A.B. de C.V. Series A
  
6,097,936
  
1.67
             
 
  
Telecommunications Services
        
41,000,000
  
América Móvil, S.A.B. de C.V. Series L
  
54,690,864
  
14.93
250,000
  
NII Holdings, Inc.
  
1,687,473
  
0.46
       
56,378,337
  
15.39
             
   
Total Common Stock
  
$359,530,091
  
98.17%




Securities
  
SHORT-TERM SECURITIES – 1.97%
        
Principal
Amount
            
   
Repurchase Agreements
        
$4,483,040
  
BBVA Bancomer, S.A., 4.43%, dated 07/31/12, due 08/01/12 repurchase price $4,483,592 collateralized by Bonos del Gobierno Federal.
  
 
 
$4,483,040
  
 
 
1.22%
   
Time Deposits
        
   
Comerica Bank, 0.12%, dated 07/31/12, due 08/01/12
  
2,754,018
  
0.75
   
Total Short-Term Securities
  
7,237,058
  
1.97
   
Total Investments
  
366,767,149
  
100.14
   
Liabilities in Excess of Other Assets
  
(528,112)
  
(0.14)
   
Net Assets Equivalent to $27.41 per share on 13,362,856 shares of capital stock outstanding
  
 
$366,239,037
  
 
100.00%

 
 
 

 

VII. The Mexico Fund, Inc. Charts

 

 
 

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