Tag Archives: Mexico

The Downs and Ups of Latin American Markets – April 2020 Review

Investment in Latin America’s equity markets is not for the faint of heart—now more than ever. In the first quarter of 2020, all markets in the region were significantly negative, plagued by recent events. While April has swung markets back to positive territory, we are still far from the proverbial “light at the end of Read more […]

The Difference a Month Makes: Keeping the Pulse of the Mexican Insurance Market

In February 2020, S&P Dow Jones Indices (S&P DJI) and the Association of Mexican Insurance Companies (AMIS) conducted the second annual survey of insurance investment officers in Mexico about the state of the local insurance industry. While this survey was meant to help take the pulse of the Mexican insurance market, what we did not Read more […]

The Mexican Peso: Liquid, Volatile, but Can We Hedge?

With oil prices falling and the spread of the COVID-19 pandemic, volatility is back in action. In Latin America, Forex valuations are a key barometer. Local currency depreciation is one of the most common reactions to uncertainty (see Exhibit 1). This blog highlights the recent volatility in the Mexican peso and possible ways to mitigate Read more […]

The SPIVA Latin America Scorecard Shows Diverging Countries

The SPIVA® Latin America Year-End 2019 Scorecard was released last week, showing divergent results for Latin American equities markets. The report covers Brazil, Chile, and Mexico in selected fund categories. In the framework of stable inflation, a decline in unemployment, and lower interest rates, 2019 was a great year for Brazilian equities markets, as measured Read more […]

Latin America – 2019 in Review

From a political and economic standpoint, 2019 was a challenging and interesting year for the Latin American region, but the region still finished strong. The S&P Latin America 40, Latin America’s blue-chip index, ended Q4 with a return of 9.0%, and it was up 13.9% for the year. Small-cap stocks in the region fared well, Read more […]

The Active vs. Passive Debate

The debate between active management and passive management has being ongoing for several years. Active managers make investment decisions in an effort to outperform their benchmark, while passive managers simply track an index to gain exposure to a market or segment of a market. Active managers claim to have enough skills to consistently outperform the Read more […]

Highlighting the S&P/BMV Index Series

The S&P/BMV Index Series combines the local market expertise of the Mexican Stock Exchange (the BMV) with the resources and reach of one of the most prominent independent global index providers, S&P Dow Jones Indices (S&P DJI). This productive collaboration officially began in May 2015 and adheres to international standards. The relationship also provides the Read more […]

Performance of Latin American Markets in Q3 2019

The third quarter was a difficult one for the Latin American region. Meanwhile, it was a mixed bag for global markets—the U.S. ended on a slightly positive note, Europe on a negative one, and Japan also on a positive one, with global markets remaining nearly flat. The S&P 500® ended the quarter up 1.7%, the Read more […]

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 […]