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8-K - MEXICO FUND INCmxf8kfilejan2013.htm

 
The Mexico Fund, Inc.
 
Monthly Summary Report
December 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.

 


 
 December  31, 2012  
 
 
I. The Mexico Fund Data
End of  Month
One Month Earlier
One Year Earlier
Total  Net Assets1 (million US$)
$411.72
$393.61
$318.53
NAV per share
$30.81
$29.46
$23.84
Closing price NYSE2
$29.02
$27.71
$21.85
% Premium (Discount)
(5.81%)
(5.94%)
(8.35%)
Shares traded per month2 (composite figures)
872,598
489,673
475,653
Outstanding shares3
13,362,856
13,362,856
13,362,856
Shares on Short Interest Position2
9,143
58,204
23,998
 
Note: Past performance is no guarantee of future results.
 
II. Performance4
1 Month
3 Months
6 Months
1 Year
Market price
7.08%
12.40%
24.42%
45.40%
NAV per share
6.74%
10.86%
18.58%
40.53%
Bolsa Index
5.40%
6.99%
13.01%
27.80%
MSCI Mexico Index
5.53%
6.47%
12.82%
28.20%
         
 
2 Years
3 Years
5 Years
10 Years
Market price
27.97%
82.69%
48.89%
583.33%
NAV per share
19.14%
62.83%
27.51%
535.08%
Bolsa Index
8.84%
38.59%
25.66%
479.35%
MSCI Mexico Index
11.15%
40.36%
20.04%
397.29%
 
______________________________
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: NYSE Euronext. Short interest position as of first fortnight of every month. 
3 During December 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
43,705.83
41,833.52
37,077.52
Daily avg. of million shares traded
324.1
364.1
244.8
Valuation Ratios6: P/E
19.29
18.46
19.65
                               P/BV
3.15
3.01
2.72
                               EV/EBITDA
9.63
9.32
8.61
Market capitalization (billion US$)
$577.74
$556.11
$457.02

       
IV. The Mexican Economy.
End of Month
One Month Earlier
One Year Earlier
Treasury Bills7
     
One month
4.05%
4.29%
4.34%
Six months
4.47%
4.64%
4.52%
One year
4.61%
4.76%
4.57%
Long-term Bonds
     
Three years
4.94%
4.99%
5.00%
Five years
5.05%
5.20%
5.30%
Ten years
N.A.
5.52%
6.46%
20 years
6.28%
6.34%
7.60%
30 years
6.42%
6.52%
7.76%
Currency Market8
     
Exchange Rate  (Ps/US$)
Ps. 12.8533
Ps. 12.9667
Ps. 13.9357
       
 
Month
Year to Date
Last 12 Months
Inflation Rates on Previous Month
     
Consumer Price Index9 (CPI)
0.68%
3.335
4.18%

______________________________
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.


 
V. Economic Comments.
 
According to results of the monthly poll conducted during December 2012 by Mexico’s Central Bank (Banxico), economic analysts of the private sector estimate that Mexico’s gross domestic product (GDP) will increase 3.87% during 2012 and 3.45% during 2013. The inflation rate is estimated by analysts to be 4.00% for 2012 and 3.69% for 2013. The exchange rate of the peso against the dollar is expected to end 2013 at Ps. 12.69 and at Ps. 12.72 towards the end of 2014, while the interest rate for the 28-day Cetes (Treasury Bills) is estimated to be 4.53% and 5.13% 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 December 31, 2012 (Unaudited)
 
Shares
     
Percent of
Held
 
COMMON STOCK - 98.37%
                                                 Value
Net Assets
   
Airports
     
1,000,000
 
Grupo Aeroportuario del Sureste, S.A.B. de C.V. Series B
$11,390,071
 
2.77%
           
 
 
Beverages
     
1,194,000
 
Arca Continental, S.A.B. de C.V.
 8,926,226
 
2.17
430,000
 
Coca-Cola Femsa, S.A.B. de C.V. Series L
 6,401,173
 
1.56
3,300,000
 
Fomento Económico Mexicano, S.A.B. de C.V. Series UBD
 33,199,490
 
8.06
425,000
 
Grupo Modelo, S.A.B. de C.V. Series C
 3,836,252
 
0.93
     
52,363,141
 
12.72
 
 
Building Materials
     
22,000,000
 
Cemex, S.A.B. de C.V. Series CPO
 21,737,608
 
5.28
           
 
 
Chemical Products
     
3,300,000
 
Alpek, S.A.B. de C.V. Series A
 8,942,373
 
2.17
3,630,396
 
Mexichem, S.A.B. de C.V.
 20,367,365
 
4.95
     
29,309,738
 
7.12
 
 
Construction and Infrastructure
     
3,000,000
 
Empresas ICA, S.A.B. de C.V.
 7,513,246
 
1.83
2,200,000
 
OHL México, S.A.B. de C.V.
 4,861,008
 
1.18
     
12,374,254
 
3.01
 
 
Consumer Products
     
6,000,000
 
Kimberly-Clark de México, S.A.B. de C.V. Series A
 15,385,932
 
3.74
           
 
 
Financial Groups
     
1,470,000
 
Banregio Grupo Financiero, S.A.B. de C.V. Series O
 6,736,247
 
1.64
2,840,000
 
Grupo Financiero Banorte, S.A.B. de C.V. Series O
 18,438,689
 
4.48
3,720,000
 
Grupo Financiero Santander Mexicano, S.A.B de C.V. Series B
 12,103,538
 
2.94
     
37,278,474
 
9.06
 
 
Food
     
4,700,000
 
Grupo Bimbo, S.A.B. de C.V. Series A
 12,238,802
 
2.97
1,550,000
 
Grupo Herdez, S.A.B. de C.V.
 4,787,486
 
1.16
     
17,026,288
 
4.13
 
 
Health Care
     
2,720,000
 
Genomma Lab Internacional, S.A.B. de C.V. Series B
 5,626,944
 
1.37
           
 
 
Holding Companies
     
12,090,000
 
Alfa, S.A.B. de C.V. Series A
 25,754,024
 
6.26
1,620,000
 
Grupo Carso, S.A.B. de C.V. Series A1
 7,883,656
 
1.91
     
33,637,680
 
8.17
 
 
Media
     
3,042,000
 
Grupo Televisa, S.A.B. Series CPO
 16,152,778
 
3.92
           
 
 
Mining
     
5,250,000
 
Grupo México, S.A.B. de C.V. Series B
 19,095,291
 
4.64
74,000
 
Industrias Peñoles, S.A.B. de C.V.
 3,747,584
 
0.91
     
22,842,875
 
5.55
 
 
 

 
 
Shares
     
Percent of
Held
 
COMMON STOCK
                                                      Value
Net Assets
 
 
Restaurants
     
2,000,000
 
Alsea, S.A.B. de C.V.
 4,011,421
 
0.97
           
 
 
Retail
     
2,550,000
 
Controladora Comercial Mexicana, S.A.B. de C.V. Series UBC
 8,983,218
 
2.18
1,300,000
 
El Puerto de Liverpool, S.A.B. de C.V. Series C-1
 13,705,663
 
3.33
2,740,000
 
Grupo Comercial Chedraui, S.A.B. de C.V. Series B
 8,951,211
 
2.17
8,100,000
 
Wal-Mart de México, S.A.B. de C.V. Series V
 26,675,873
 
6.48
     
58,315,965
 
14.16
 
 
Steel
     
358,500
 
Ternium, S.A.
 8,442,808
 
2.05
           
 
 
Stock Exchange
     
3,200,000
 
Bolsa Mexicana de Valores, S.A.B. de C.V. Series A
 8,113,714
 
1.97
           
 
 
Telecommunications Services
     
39,000,000
 
América Móvil, S.A.B. de C.V. Series L
 45,210,179
 
10.98
250,000
 
NII Holdings, Inc.
 1,782,422
 
0.43
     
46,992,601
 
11.41
           
   
Total Common Stock
$401,002,292
 
97.40%
 

 
           
   
REAL ESTATE INVESTMENT TRUSTS – 0.97%
     
 
         
2,000,000
 
Macquaire México Real Estate Management S.A. de C.V. Series 12
 3,991,193
 
0.97
   
Total Real Estate Investment Trusts
$3,991,193
 
0.97%
           
   
Total Equity Securities
$404,993,485
 
98.37%

 

 
 
Securities
 
SHORT-TERM SECURITIES – 3.81%
     
Principal
Amount
         
   
Repurchase Agreements
     
$7,604,077
 
BBVA Bancomer, S.A., 4.44%, dated 12/31/12, due 01/02/13 repurchase price $7,605,953 collateralized
by Bonos del Gobierno Federal.
 
 
$7,604,077
 
 
 
1.85%
   
Time Deposits
     
   
Comerica Bank, 0.12%, dated 12/31/12, due 01/02/13
8,070,953
 
1.96
   
Total Short-Term Securities
15,675,030
 
3.81
   
Total Investments
420,668,515
 
102.18
   
Liabilities in Excess of Other Assets
(8,948,888)
 
(2.18)
   
Net Assets Equivalent to $30.81 per share on 13,362,856 shares of capital stock outstanding
 
$411,719,627
 
 
100.00%

 
 
 


 
VII. The Mexico Fund, Inc. Charts

 
 

 

 
 
 

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