Tag Archives: Mexico

Carlos Urzúa Resignation and Low Volatility’s Response

Mexico’s Finance Minister, Carlos Urzúa, abruptly resigned on July 9, 2019 over policy disagreements with the current government.[1] Market participants reacted negatively, generating volatility in the Mexican peso’s exchange rate, which fell 2.3% right after the announcement,[2] and the country’s equity market, and bringing a trial by fire for the S&P/BMV IPC Risk Weighted Index Read more […]

Multi-Factor Strategy in Mexico: The S&P/BMV IPC Quality, Value & Growth Index

Passive use of factor strategies began with growth and value style investing. S&P Dow Jones Indices now offers single- and multi-factor indices that provide exposure to growth, quality, value, momentum, size, yield, and low volatility factors. Factors perform differently depending on market conditions, economic cycles, or investor sentiment. Timing factors can be difficult. Many market Read more […]

A Look at the Investability and Replicability of the S&P/BMV IPC

In a prior blog, Getting to Know the S&P/BMV IPC – An Iconic Representation of the Mexican Equity Market, we examined the evolution of the S&P/BMV IPC and tracked its role from being a financial market indicator to serving as the basis for index-linked liquid investment products. In this blog post, we look at the Read more […]

Getting to Know the S&P/BMV IPC – An Iconic Representation of the Mexican Equity Market

2018 marks the 40th anniversary of the S&P/BMV IPC, launched on Oct. 30, 1978, as part of the Mexican market revolution. Honoring that milestone, we revisited the evolution of the index that has since become an icon of the Mexican equity market.[1] As of Dec. 31, 2017, Mexico had 141 listed domestic companies, with a Read more […]

No New Airport for Mexico Brings Big Hits to Its Markets

On Monday, Oct. 29, 2018, Andrés Manuel López Obrador, president-elect of Mexico, announced that he would cancel the construction of the new airport in Mexico City, which had reached 30% completion. After a four-day unofficial referendum, in which less than 2% of the voters participated, the upcoming president (who will assume office on Dec. 1, Read more […]

SPIVA® Latin America Mid-Year 2018 Results

Last week, the SPIVA Latin America Mid-Year 2018 Scorecard was released. The scorecard tracks the performance of active mutual funds in Brazil, Chile, and Mexico through the end of June 2018. Exhibit 1 shows how managers fared against their respective category benchmarks for one-, three-, and five-year lookback periods. In the short- and long-term periods, Read more […]

Mexican Currency and Elections

General elections (president, senate, and chamber of deputies) are around the corner. The eyes of every Mexican and many people around the globe are on the Mexico-Brazil match of the World Cup—wait, that is another story. Nobody knows what the outcome of the elections will be. We have seen different events where the polls were Read more […]

Understanding the Asset Class Risk Contribution of the S&P/BMV Mexico Target Risk Indices

The S&P/BMV Mexico Target Risk Index Series comprises four multi-asset class indices that are designed to serve as benchmarks for the Mexican pension system based on the risk tolerance levels of plan participants. Generally, younger individuals with longer time horizons until retirement will have greater risk tolerance and therefore higher exposure to risky assets such Read more […]

Introducing the Persistence Scorecard for Latin America

Following similar studies performed by S&P Dow Jones Indices on active funds in the U.S. and Australia, we introduce the Persistence Scorecard to the Latin America region. The two aforementioned studies have demonstrated that top-performing active funds have little chance of repeating that success in subsequent years. To determine if similar conclusions can be made Read more […]

SPIVA® Latin America – Active Versus Passive in Latin America

The SPIVA Latin America Year-End 2017 Scorecard, which tracks the performance of active funds in Brazil, Chile, and Mexico relative to category benchmarks, was recently released. To ensure that the report is as relevant as possible to market participants, the S&P/BMV IRT, the total return version of the S&P/BMV IPC, is being introduced as the Read more […]