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Pichardo Asset Management

  • MXE December 2016

    06.Jun.17
    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.
  • MXE January 2017

    06.Jun.17
    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.
  • MXE February 2017

    06.Jun.17
    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 March 2017

    06.Jun.17
    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).

Monthly Reports

  • MXE April 2017

    06.Jun.17
    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 May 2017

    25.Nov.17
    The Mexican economy could be picking up in 2017, supported mainly by the services sector; on the downside, gross fixed investment has been lagging, consumer price levels have continued to rise, and there are incipient signs of internal political uncertainty.
  • MXE June 2017

    25.Nov.17
    June was marked by the World Bank`s report that global economic activity is firming broadly as expected, manufacturing and trade are picking up, confidence is improving, and international financing conditions remain benign. According to the World Bank, global growth should strengthen to 2.7% in 2017 and 2.9% in 2018-2019, in line with January forecasts. In Emerging Market and Developing Economies (EMDEs), growth is predicted to recover to 4.1% in 2017 and reach an average of 4.6% in 2018-2019, as obstacles to growth in commodity exporters diminish, while activity among commodity importers remains robust.
  • MXE July 2017

    25.Nov.17
    At the end of July, global economic growth is estimated at 3.5% for 2017 and 3.6% in 2018, as strong manufacturing indexes show global trade and industrial production to be on track, according to the International Monetary Fund (IMF). (See Exhibit A).
  • MXE August 2017

    13.Feb.18
    The Mexican stock market was bullish during August, following global markets, a month that usually shows lower traded volume because of the vacation period. Going forward, Mexico faces scenarios that could bring higher volatility to local markets. The renegotiation process of NAFTA has begun without having a major impact in markets, despite President Trump’s statements.
  • MXE September 2017

    13.Feb.18
    While for most Mexicans, September 2017 will be remembered as month of sorrow caused by two deadly earthquakes, it will also be remembered for the extraordinary outpouring of pride and nationalistic passion that has since helped the country rebound, partly thanks to a young and dynamic population.
  • MXE October 2017

    13.Feb.18
    The world economy continued to grow in the third quarter of the year. In the U.S., the labor market and the economy displayed a solid growth pace, despite the impact of the hurricanes. While inflation has remained below 2%, the Federal Reserve continues to believe that it will gradually converge to that level and began offloading its balance sheet in October, although there are growing expectations of a rate hike in November.
  • MXE November 2017

    13.Feb.18
    The Mexican peso strengthened 3.3% in November mainly because NAFTA negotiations suggest a more favorable outlook for Mexico. More than 70 bipartisan members of the US Congress sent a letter to the administration in November saying the United States’ proposal for the automobile sector would diminish America’s global competitiveness. (Source: Bloomberg)
  • MXE December 2017 Fact Sheet

    13.Feb.18
    The Mexico Equity and Income Fund, Inc. (“the Fund”) maintains an investment objective of long-term capital appreciation through investments in securities, primarily equity, listed on the Mexican Stock Exchange.
  • MXE December 2017

    13.Feb.18
    Despite lingering North American Free Trade Agreement (NAFTA) concerns and uncertainty generated by the July 2018 presidential elections, the Mexbol Index closed 2017 on a positive note underpinned by robust inflows into equities, resilient consumption, and economic growth, as well as a solid macro framework.
  • MXE January 2018 Fact Sheet

    05.Sep.18
  • MXE February 2018 Fact Sheet

    09.May.18
  • MXE March 2018 Fact Sheet

    09.May.18
  • MXE March 2018 Quarterly

    05.Sep.18
    Against the backdrop of a possible U.S. trade war with China, the Mexican economy remains on a solid growth track at the end of March with the January Global Indicator of Economic Activity (IGAE) rising 2.15%, above the four previous months, driven by the services and industrial sectors as well as consumption (+9.9%). (Source: INEGI & ANTAD).
  • MXE Economic Report for the Week Ended April 6, 2018

    21.May.18
    A Promising Start for Mexican Equities in April
  • MXE Weekly Economic Report for the Week Ended April 13, 2018

    21.May.18
    Strong Two-Week Gain for the Mexican Stock exchange
  • MXE Weekly Economic Report for the Week Ended April 20, 2018

    21.May.18
    Stocks Adjusted During the week; the Market Expects Good First Quarter Earnings Reports
  • MXE Weekly Economic Report for the Week Ended April 27, 2018

    21.May.18
    Rise in U.S Treasury Yield Poses a Big Risk Factor
  • MXE Weekly Economic Report for the Week Ended May 4, 2018

    21.May.18
    Mexbol and Exchange Rate Impacted by Diverse Factors
  • MXE Weekly Economic Report for the Week Ended May 11, 2018

    21.May.18
    NAFTA and the political environment: two factors of concern for Mexican markets. Banxico: What is going on with the integrity of the payment system?
  • MXE Weekly Economic Report for the Week Ended May 18, 2018.

    28.May.18
    Markets correct on NAFTA and the elections

Annual Reports

  • MXE Annual 2014

    06.Jun.17
    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.
  • MXE Annual 2015

    06.Jun.17
    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 2016

    06.Jun.17
    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 Report 2017

    25.Nov.17
    We are writing our Annual Stockholders Letter for the fiscal year ended July 31, 2017 amid a modest recovery in global economic growth and the rekindling of the Mexican economy. However, uncertainty regarding U.S. economic policy, growing geopolitical risks in some regions, and the possibility of international trade barriers constitute risks to the pick-up in growth. So far, Mexico has faced an adverse economic and political environment characterized by risk aversion in international capital markets and an unfriendly government in the U.S., the country’s main trading and investment partner.

Semi Annual Reports

  • MXE Semi-Annual 2015

    06.Jun.17
    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).
  • MXE Semi-Annual 2016

    06.Jun.17
    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 2017

    06.Jun.17
    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 2018

    09.May.18
    Our discipline in maintaining a fund portfolio built on independent fundamental analysis and a value and growth investment strategy has enabled us to bring about a significant relative recovery in the Fund’s performance vs. its benchmark at the end of the Fund’s semi-annual period and one year period ended January 31, 2018, compared to the same periods in 2017, as reported in the table below.