Download REPORTE SEMANAL DEL 14 AL 18 DE NOVIEMBRE DE 2016

COMPASS INVESTMENT OCHO, S.A. DE C.V., (PAMBF: MM)
Mutual Fund administrated by Compass Investments De México S.A. de C.V. S.O.S.I.
Weekly Report as of June 2, 2017
FUND OBJECTIVE AND STRATEGY
PERFORMANCE
Objective
PAM’s main objective is to generate capital appreciation by
investing in the stock of Mexican and international companies
through active, diversified and de-indexed portfolio management
that seeks to capitalize on stock market movements to provide longterm investors with attractive returns.
12%
MEXBOL 8.84%
10%
PAMBF 5.58%
8%
6%
Strategy
•
Active, long-term, and de-leveraged portfolio management.
•
In-depth fundamental research by an in-house team of local,
experienced analysts.
•
The investment strategy is based on asset classification and
investment themes, which includes companies with annual
dividend payout and share repurchase policies, companies with
dollarized income and risk diversification, companies that
validate an expected total return of more than 7.25%, value
stories, and companies with high ROICs.
4%
2%
0%
-2%
Source: Bloomberg & PAM
Returns (%)
1W
May 17
1Q17
1Y
Since Inception
PAMBF3
MXN
-1.07%
-1.87%
5.18%
-0.80%
9.54%
USD
-2.03%
-0.70%
15.69%
-1.04%
-1.03%
PAMBF4
MXN
-1.07%
-1.87%
5.16%
-0.86%
9.43%
USD
-2.03%
-0.70%
15.67%
-1.10%
-1.13%
MXN
-1.07%
-1.88%
5.15%
-0.92%
9.32%
USD
-2.03%
-0.71%
15.65%
-1.16%
-1.23%
MXN
-0.69%
-0.61%
6.65%
10.26%
18.49%
USD
-1.65%
0.57%
17.31%
9.99%
7.06%
-0.89%
1.08%
10.69%
-0.02%
-9.93%
Excess Returns (Basis Points)
1W
May 17
1Q17
1Y
Since Inception
PAMBF3 vs MEXBOL
-38
-126
-147
-1106
-895
Distinguishing Characteristics
•
27 years of experience in the U.S. and Mexico; sales and
regulatory practices.
•
**The fund reflects the strategy established by Pichardo Asset
Management for the Mexico Equity & Income Fund (MXE), an
NYSE-listed closed-end fund that began operating in August,
1990 (27 years).
PAMBF5
FUND INFORMATION
MEXBOL
Share Class Data
Share Class
PAMBF3
Type
PAMBF4
PAMBF5
MXN/USD
Open-end Fund
Currency
MXN
Tot. Annual Cost
2.15%
2.20%
2.25%
Minimum (MXN)
$50m
$25m
$5m
ISIN
Average Annual Return in USD, with
reinvested dividends
MX52PA0F00 (39/47/54)
As of May 31 2017
FUND BASICS
Domicile/Structure
Mexico
Launch Date
Returns (%)
2016
2015*
3 years
5 years 10 years 27 years
September 2, 2015
PAMBF3
MXN
5.58%
0.88%
2.84%
-
-
-
-
MXN
PAMBF4
MXN
5.56%
0.82%
2.82%
-
-
-
-
$261
PAMBF5
MXN
5.53%
0.76%
2.80%
-
-
-
-
30
MEXBOL
MXN
8.84%
8.05%
0.76%
-
-
-
-
MXE**
USD
16.93% -14.88% 1.32%
-5.67%
7.34%
1.75%
12.15%
MEXBOL
USD
20.35% -9.83%
-5.01%
1.43%
0.61%
10.06%
-
-
-
-
Base Currency
Fund Assets (MXN M)
Number of Holdings
Number of off-index holdings
Liquidity
8
72 hours
Benchmark (index)
MXN/USD
MEXBOL
Fund Beta (Since Sep 2 2015)
0.854
Index Beta (Since Sep 2 2015)
1.058
INVESTMENT TEAM
Maria Eugenia Pichardo
27 years
Arnulfo Rodríguez
25 years
José Luis Ramirez
20 years
Consistency
10.95% -16.98% -2.22%
FUND COMPOSITION*
Top Ten Holdings
AMXL
GMEXICO
GFNORTE
CEMEXCPO
ALFAA
WALMEX
FEMSA
MEXCHEM
LIVEPOLC
SITESB
FUND ADVISOR
Pichardo Asset Management, S.A. de C.V., Asesor Independiente en
Inversiones
Andrés Bello 45, Piso 22nd floor, Chapultepec Polanco
Miguel Hidalgo, 11560, CDMX, México
-1.35%
Source: U.S. Bancorp, Bloomberg, Thomson Reuters & PAM
Past performance does not guarantee future results.
.
*09-02-2015/12-31-2015
Experience
Experience
YTD
Sector breakdown
Materials
Financials
Consumer Staples
Industrials
Telecommunications Services
Consumer Discretionary
Real Estate
Utilities
*As of June 1 2017
Source: Compass & PAM
Vision
%
10%
8%
7%
7%
5%
4%
4%
3%
3%
3%
-1-
%
22%
17%
15%
15%
12%
11%
3%
3%
Consistency
Vision
COMPASS INVESTMENT OCHO, S.A. DE C.V., (PAMBF: MM)
Mutual Fund administrated by Compass Investments De México S.A. de C.V. S.O.S.I.
Politics and Markets (Part 2)
Mexican Stock Market Price Index
The Mexican stock market rose just 0.24% in May due to profit-taking, which at
times put the index below the 49,000 point mark, which is to be expected
following the IPyC’s return of almost 9% during the first four months of the
year. We expect solid performance from equities ahead of the release of
second quarter financial reports in July on the back of an upward revision to
2017 economic growth estimates, peso appreciation, the rise in short-term
interest rates, and signs of more balanced public finances, all of which are
factors that should favor the entry of foreign portfolio investment into
Mexican financial markets.
52,000
50,000
48,000
46,000
44,000
42,000
40,000
38,000
36,000
34,000
32,000
30,000
28,000
The May pause in the stock market’s uptrend was due to two main factors:
1.
2.
Strong volatility in US and Brazilian markets in response to some serious
political issues their governments are facing, namely, the Trump
administration’s difficulty winning Congressional and/or Judicial support
for his public policies, and pressures associated with the demise of Michel
Temer’s government due to political corruption scandals; and
Investor caution ahead of the Sunday June 4th elections in the states of
Mexico, Coahuila and Nayarit (Governorships) and Veracruz (Local
governments).
49,939
49,317
46,357
40,225
Return
1 Year
YTD
Week
MXN
10.26%
8.84%
-0.69%
USD
9.99%
20.35%
-1.65%
Source: Bloomberg
Change in Non-Farm Payroll
600
500
Change in Non-Farm Payroll
400
Survey
300
200
182
138
100
The events of 2016 (BREXIT, Trump’s election, etc.) showed the extent to
which financial markets are sensitive to political events. In this context, the
favorable results of the June 4th elections are worth mentioning, both, and
principally, for the civility of the process and because they lessened the
traction of the far left, which is against structural reform and set on affecting
economic performance.
0
-100
-200
Source: Bloomberg
June began with the US jobless report. The nonfarm payroll showed an increase
of 138,000 new jobs, which was disappointing compared to the market’s
expectation of 185,000 and the 66,000 downward revision to figures
corresponding to the previous two months. The data had no material impact on
markets, as the jobless rate of 4.3% was a 16-year low. It is too early to say
whether the nonfarm payroll weakness was caused by Trump’s erratic public
policies, but if the trend continues, disappointment with his government and
further isolation will increase. For now the data is not enough to alter
expectations that the Federal Reserve will hike its reference rate by 25 basis
points to 1.00% – 1.25% in its June 13 and 14 meeting.
Meanwhile, the Mexican peso remains one of the currencies that has posted the
biggest gains against the US dollar in 2017. Since hitting a low of MXN$ 21.9044
against the dollar on January 19, the peso has strengthened by more than 16%.
At the close of operations on June 5th, the interbank exchange rate was
MX$18.3665, an appreciation of 1.4% against the dollar since June 3rd.
Apparently, the stock market is also validating the outcome of the recent
elections.
U.S. Unemployment Rate
11
10
9
8
7
6
5
4.3
4
Source: U.S. Bureau of Labor Statistics
Apreciation /
Depreciatión
Annual
Accumulated
MXN/USD Spot Exchange Rate
-12.3%
-12.3%
-14.3%
-24.8%
WTI
Arnulfo Rodríguez
Senior Debt Analyst & Portfolio Manager
Investor Relations
(55) 5261 4600
-17.0%
-37.6%
11.2%
-30.5%
22.5
22.0
21.5
21.0
20.5
20.0
19.5
19.0
18.5
18.0
17.5
17.0
16.5
16.0
15.5
15.0
14.5
14.0
13.5
13.0
12.5
12.0
Source: Bloomberg
Disclosures
Pichardo Asset Management provides the advisory service to Fondo Compass Investment Ocho, S.A. de C.V., for which it receives a fee for these services. Pichardo Asset Management conducts its decisions under standards from more than 26
years of experience in portfolio management advice, and provides comments in a weekly and monthly basis. The information contained herein reflects the opinion of the advisor and as such should not be constructed as fundamental
analysis or a decision-making model. Neither should the information be interpreted as a solicitation, offer or recommendation to buy or sell financial securities. It is also subject to changes without prior notification and estimates cannot be
guaranteed. The registration that PAM maintains with the securities supervisory authorities in both Mexico and the U.S. do not i
-001-(5365)Market Law.
Experience
Consistency
Vision
-2-