Pichardo Asset Management

  • MXE April 2017

    Mexico has been able to withstand U.S. trade policy uncertainties, due to its firm commitment to maintain a free economic leader status, with a gradual, but solid development of its economy. Structural reforms approved in 2013 as well as the reform of the pension system and commitment to free trade have helped the economy withstand outside pressures, mainly the fallout of oil prices.
  • MXE March 2017

    The Global Economic Activity Indicator (IGAE) report for January 2017 shows a 0.3% increase compared to the previous month, and 2.5% compared to the previous year, indicating that so far, growth remains resilient. (Source: INEGI). Other data released during 1Q’2017 points to a moderate decline in private consumption. It seems that a slight turnaround in industrial activity has offset the prior, as Industrial Production rose in January 0.1% compared to the previous month, boosted by manufacturing activity’s 0.5% monthly growth. (Source: INEGI).
  • MXE February 2017

    Economic activity has continued to point towards slightly higher growth worldwide, with industrial activity strengthening in the U.S., China, Japan, and the Euro Zone, taking financial markets and equity indexes to new all-times highs.
  • MXE January 2017

    The Fund’s strategy remains adhered to our quality portfolio management, including companies with attractive valuations and strong fundamentals, despite high market price swing valuations on the policies of the new U.S. administration, especially in relation to trade agreements.

Monthly Reports

  • MXE December 2016

    Economic activity picked up in the second half of the year on the back of stronger manufacturing data, ongoing job creation, China’s fiscal stimulus, prospects of fiscal stimuli in developed countries, and a sharp turnaround in commodity prices.

Annual Reports

  • MXE Annual 2016

    Despite the Fund’s persistent double-digit discount, long-term stockholders have been well served by the high quality portfolio management of Pichardo Asset Management, the Fund’s investment advisor. From its inception on August 30, 1990 through July 31, 2016, the Fund’s annualized NAV return is 12.55%, significantly better than the 9.94% per annum return of the Mexico MSCI.
  • MXE Annual 2015

    We present our Annual Stockholder Letter for the Fund’s fiscal year ended July 31, 2015 amid a prolonged period of U.S. Dollar strengthening against global currencies (See: Exhibit A*) and an international oil price range of US$ 40 to 60 dollars per barrel compared to a high of over US$ 100 per barrel one year ago.
  • MXE Annual 2014

    This is an easy letter to write. The Fund’s recent outperformance relative to the indexes and to its peers speaks for itself. According to Lipper, as of September 24, 2014, the Fund’s market price is up 22% over the past year vs. 3% for The Mexico Fund. There is nothing to say except, “Well done” to the team at Pichardo Asset Management, the Fund’s investment advisor. PAM’s bottom up approach to portfolio selection has thus far been a huge success as Mexico struggles to implement meaningful economic reforms.

Semi Annual Reports

  • MXE Semi-Annual 2017

    As of the Fund’s semi-annual period ended January 31, 2017, following lackluster global economic performance in 2016, economic activity is expected to pick up in 2017 and 2018. However, given uncertainty surrounding the policy stance of the current U.S. administration and its global ramifications, the International Monetary Fund (IMF) mentions the possibility of a wide dispersion of outcomes around its estimates in a publication titled “A Shifting Global Economic Landscape”, dated January 16, 2017.
  • MXE Semi-Annual 2016

    The Fund’s long, medium, and short-term performance relative to the benchmark indexes and to its peers is impressive. In sum, stockholders have been well served by the high quality portfolio management of Pichardo Asset Management, the Fund’s investment advisor. For detailed actual performance data, please refer to the presentation dated March 15, 2016 on the Fund’s website (http://www.mxefund.com/pdfs/Presentation_0316.pdf )
  • MXE Semi-Annual 2015

    For the semi-annual period of the Fund, the Mexican oil mix price slumped by around -57% while the Mexican Peso lost -11.75% against the U.S. Dollar. The turmoil in global foreign exchange markets as a result of U.S. Dollar strengthening was reflected in foreign investors’ demand for the Mexican 10-year Bond. (See Exhibit A: Charts I, II & III). (Source: Bloomberg).