Fitch Publishes Analysis of Return According to Market Risk Rating of 241 Mexican Funds

MONTERREY, Mexico--()--The report 'Return According to Market Risk Rating of Bond Investment Funds (First Semester 2014)' published by Fitch Ratings, analyses the behavior of the average annualized monthly return (AAMR) of 241 Mexican bond funds (BF) during the first semester of 2014 (1S14). Out of the 241 funds rated, 211 are denominated in local currency and 30 in foreign currency.

The report examines the AAMR of the bond funds, taking into account the market risk group to which they belong, according to the homogeneous rating scale of the National Banking and Securities Commission (CNBV), which goes from 'MR1' (very low market risk) to 'MR7' (very high market risk). For purposes of the analysis, Fitch grouped the funds denominated in foreign currency in the 'FC' category, given the behavior they have shown as a result of their exposure to exchange risk.

The results reflect that the return of bond funds exceeded significantly that of the same period in 2013 with lower variability. This is also evidenced in the AAMR of the local currency funds groups, mainly in those integrated by long-term instruments (MR6 and MR7) whose returns changed from negative to positive. Furthermore, the standard deviation of each group was commensurate with their level of market risk. In this indicator, the 'FC' category funds registered the highest level in both periods, regardless of the market conditions.

Appendix I of the report shows a table with the AAMR corresponding to the 1S14 for the 241 debt funds. The funds appear classified according to the mentioned groups and showing the operator that manages them. The returns are listed in descending order.

The information contained in Appendix I is for informative purposes only and therefore, it is not relevant for carrying out a comparative analysis of the performance of the funds.

The special report 'Returns According to Market Risk Rating, Bond Investment Funds (First Semester 2014)' is available at www.fitchratings.mx and www.fitchratings.com.

Additional information available at: www.fitchratings.com or www.fitchratings.mx.

Applicable Criteria and Related Research:

--'Return According to Market Risk Rating, Bond Investment Funds (First Semester 2014)' (Oct. 03, 2014).

Applicable Criteria and Related Research: Return According to Market Risk Rating -- Bond Investment Funds (First-Half 2014)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=781668

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Contacts

Fitch Ratings
Monica Gonzalez, +(52) 81 8399 9100
Analyst
Fitch Mexico, S.A. de C.V.
Prol. Alfonso Reyes 2612,
Monterrey, N.L. Mexico
or
Bertha Cantu, +(52) 81 8399 9100
Director
or
Alfredo Gomez, +(52) 81 8399 9100
Senior Director
or
Arturo Rueda, +(52) 81 8399 9100
Senior Director
or
Media Relations:
Elizabeth Fogerty, +1 212-908-0526
elizabeth.fogerty@fitchratings.com

Contacts

Fitch Ratings
Monica Gonzalez, +(52) 81 8399 9100
Analyst
Fitch Mexico, S.A. de C.V.
Prol. Alfonso Reyes 2612,
Monterrey, N.L. Mexico
or
Bertha Cantu, +(52) 81 8399 9100
Director
or
Alfredo Gomez, +(52) 81 8399 9100
Senior Director
or
Arturo Rueda, +(52) 81 8399 9100
Senior Director
or
Media Relations:
Elizabeth Fogerty, +1 212-908-0526
elizabeth.fogerty@fitchratings.com