A Success Story

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and the group restructured of Corretajes e Inversiones Bursátiles operationally with the intro- (stock brokerage and investments) and duction of José Pedro Valen- was founded by Franz Mayer, a well- zuela, Roberto Valdés Acra, known collector of baroque art and and Hector and Alvaro expert stockbroker together with his Madero on the staff. From brother-in-law Luis Rosenfeld, who Year VI • No. 11 • November 2014 Actinews that date Hector Madero came to Mexico before the Mexican Rivero took on the role of Revolution. In July 1974 it changed its General Director of the group, name to Bursátil de México. over which he now presides. In 2007 Actinver carried out the Actinver: A success story. The attraction of investment placement of debt security certificates Actinver born 20 years ago with the sole aim of becoming the starts to gradually improve at on the Mexican Stock Exchange, and the same time that the acquired Actinver Securities, a broker- most important investment adviser in this country. economy also starts progress- age company in the United States stock ing at a better pace. market, with offices in Houston and San During the first half of the nineties, ment fund company. given to start operations with the public After a few years, offices Antonio, Texas. Mexico experienced an intense credit On November 3, 1994 Don Hector on December 20. were opened in other cities in In 2009 Actinver completed another boom. Don Hector Madero Hornedo, received a call from Luis Miguel The devaluation of the peso happened Mexico, the first of them in the acquisition when it acquired Banco founder of Actinver, had a factoring Moreno, the new President of the one day before, in the evening, sending Port of Veracruz, followed by Prudential and Prudential Financial, company called Impulsora Factor that National Securities Commission, to the rate from $3 to $4.20 and then $6 Monterrey and Puebla the Investment Fund Company, consolidat- was the only factoring company to issue inform him that the process was going pesos to the dollar. Actinver's capital, same year. ing its investment fund business with 42 debt on the stock market. He saw that well, that approval was likely, but that totally invested in a checking account in The figure of the investment in-house funds. the credit bubble was going to end the group of partners needed to show the pesos, lost half of its purchasing power recovered the entire capital in terms of fund company was not known, and A year later, in 2010, the company badly, as all booms usually do, with a capital in a checking account, which in a question of hours. dollars. there were only three others in Mexico. obtained approval to constitute itself as bang. So he decided to gradually reduce they did a few days later. Confusion among the shareholders The first year of Actinver, 1995, was Finacorp, Allen W Lloyd and a third in Grupo Financiero Actinver and places the company's operations until it was a On November 30 the same year, the was extreme. What to do? Operations one of the worst years in Mexico's Monterrey that did not survive. With its shares on the Mexican Stock small enough not to suffer adverse original group of shareholders of Actin- hadn't even started and they had already economic history, with enormous time, Actinver has acquired both com- Exchange, placing 15% of its capital. effect in a crisis. ver received notification of the approval lost half of the capital in terms of difficulties to open accounts. People had petitors. Finacorp in 2001 and Allen W In 2011 it acquired 51% of the leasing At the beginning of 1994, Don Hector of the permit to start operations, subject dollars. Don Hector detected a possible no savings. Instead, they had mortgages Lloyd in 2006. company Pure Leasing S.A. de C.V., got a call from Oscar Espinoza, then to the revision of the original systems, way out by investing in shares of the with a principal that had increased In 2003 the group opened an Afore diversifying its business to support its President of the National Securities which were actually provided by Bursa- Peñoles mine, that despite the devalua- disproportionately with hyperinflation, (retirement funds administration com- investors and companies. Commission, to tell him that he was métrica (Ernesto O'Farrill). Once the tion had not gone up in value. A few and there was no way to pay at the extor- pany), that made an significant impact In 2012 the Group acquired the interested in starting the figure of inde- systems were certified, permission was months later, says Don Hector, they had tionate rates that were reached during on the industry by entering the market investment advice business of American pendent investment fund companies, the period. with an aggressive philosophy of com- Express in Mexico. and believed that his experience of the At the end of 1995 Actinver had man- petition, lowering the high commis- More recently, Actinver has contin- stock market could be ideal to launch aged to attract $85 million pesos, which sions which prevailed in the market. ued to innovate in investment products, the first company. Don Hector already were not enough to pay the very austere Five Years later, in 2008, with a change one of its distinguishing characteris- had more than 30 years experience as an operating costs. Don Hector had no in the regulation that was not very tics, and forge strategic alliances with independent stock market broker and in salary for example. The offices were favorable for the non-dominant the most prestigious investment firms brokerage houses. located in Enrique Wallón street in the Afores, it was decided to sell the Afore in the world. Today Actinver has two Don Hector decided to rise to the Anzures neighborhood, in a house to Metlife. thousand employees of which one challenge and called together a select owned by Don Hector that he didn't In 2004, through a government thousand one hundred eighty are group of potential investors to raise the charge rent for. The capital was lost tender, Actinver bought the stock investment advisers, who serve more initial capital, which amounted to the again. The auditor's opinion in the brokerage firm Bursamex, today Actin- than 172 thousand investors. It has equivalent of USD$4 million dollars, financial statements laid bare a critical ver Brokerage House, the oldest stock managed to attract $330 billion pesos and began to fulfill all the instances and situation. brokerage firm in the country and that in custody and administration, which requirements for the permit to start In March of 1996 an extraordinary had been receiving help from the ranks it as the fifth financial group in operations as an independent invest- shareholder's meeting was called in authorities for several years. Bursamex terms of assets in the country. which new shareholders were invited was founded in the 50’s under the name > Continued on page 2 2 | Actinews • Invest intelligently

and the group restructured of Corretajes e Inversiones Bursátiles operationally with the intro- (stock brokerage and investments) and duction of José Pedro Valen- was founded by Franz Mayer, a well- zuela, Roberto Valdés Acra, known collector of baroque art and and Hector and Alvaro expert stockbroker together with his Madero on the staff. From brother-in-law Luis Rosenfeld, who that date Hector Madero came to Mexico before the Mexican Rivero took on the role of Revolution. In July 1974 it changed its General Director of the group, name to Bursátil de México. over which he now presides. In 2007 Actinver carried out the The attraction of investment placement of debt security certificates starts to gradually improve at on the Mexican Stock Exchange, and the same time that the acquired Actinver Securities, a broker- economy also starts progress- age company in the United States stock ing at a better pace. market, with offices in Houston and San During the first half of the nineties, ment fund company. given to start operations with the public After a few years, offices Antonio, Texas. Mexico experienced an intense credit On November 3, 1994 Don Hector on December 20. were opened in other cities in In 2009 Actinver completed another boom. Don Hector Madero Hornedo, received a call from Luis Miguel The devaluation of the peso happened Mexico, the first of them in the acquisition when it acquired Banco founder of Actinver, had a factoring Moreno, the new President of the one day before, in the evening, sending Port of Veracruz, followed by Prudential and Prudential Financial, company called Impulsora Factor that National Securities Commission, to the rate from $3 to $4.20 and then $6 Monterrey and Puebla the Investment Fund Company, consolidat- was the only factoring company to issue inform him that the process was going pesos to the dollar. Actinver's capital, same year. ing its investment fund business with 42 debt on the stock market. He saw that well, that approval was likely, but that totally invested in a checking account in The figure of the investment in-house funds. the credit bubble was going to end the group of partners needed to show the pesos, lost half of its purchasing power recovered the entire capital in terms of fund company was not known, and A year later, in 2010, the company badly, as all booms usually do, with a capital in a checking account, which in a question of hours. dollars. there were only three others in Mexico. obtained approval to constitute itself as bang. So he decided to gradually reduce they did a few days later. Confusion among the shareholders The first year of Actinver, 1995, was Finacorp, Allen W Lloyd and a third in Grupo Financiero Actinver and places the company's operations until it was a On November 30 the same year, the was extreme. What to do? Operations one of the worst years in Mexico's Monterrey that did not survive. With its shares on the Mexican Stock small enough not to suffer adverse original group of shareholders of Actin- hadn't even started and they had already economic history, with enormous time, Actinver has acquired both com- Exchange, placing 15% of its capital. effect in a crisis. ver received notification of the approval lost half of the capital in terms of difficulties to open accounts. People had petitors. Finacorp in 2001 and Allen W In 2011 it acquired 51% of the leasing At the beginning of 1994, Don Hector of the permit to start operations, subject dollars. Don Hector detected a possible no savings. Instead, they had mortgages Lloyd in 2006. company Pure Leasing S.A. de C.V., got a call from Oscar Espinoza, then to the revision of the original systems, way out by investing in shares of the with a principal that had increased In 2003 the group opened an Afore diversifying its business to support its President of the National Securities which were actually provided by Bursa- Peñoles mine, that despite the devalua- disproportionately with hyperinflation, (retirement funds administration com- investors and companies. Commission, to tell him that he was métrica (Ernesto O'Farrill). Once the tion had not gone up in value. A few and there was no way to pay at the extor- pany), that made an significant impact In 2012 the Group acquired the interested in starting the figure of inde- systems were certified, permission was months later, says Don Hector, they had tionate rates that were reached during on the industry by entering the market investment advice business of American pendent investment fund companies, the period. with an aggressive philosophy of com- Express in Mexico. and believed that his experience of the At the end of 1995 Actinver had man- petition, lowering the high commis- More recently, Actinver has contin- stock market could be ideal to launch aged to attract $85 million pesos, which sions which prevailed in the market. ued to innovate in investment products, the first company. Don Hector already were not enough to pay the very austere Five Years later, in 2008, with a change one of its distinguishing characteris- had more than 30 years experience as an operating costs. Don Hector had no in the regulation that was not very tics, and forge strategic alliances with independent stock market broker and in salary for example. The offices were favorable for the non-dominant the most prestigious investment firms brokerage houses. located in Enrique Wallón street in the Afores, it was decided to sell the Afore in the world. Today Actinver has two Don Hector decided to rise to the Anzures neighborhood, in a house to Metlife. thousand employees of which one challenge and called together a select owned by Don Hector that he didn't In 2004, through a government thousand one hundred eighty are group of potential investors to raise the charge rent for. The capital was lost tender, Actinver bought the stock investment advisers, who serve more initial capital, which amounted to the again. The auditor's opinion in the brokerage firm Bursamex, today Actin- than 172 thousand investors. It has equivalent of USD$4 million dollars, financial statements laid bare a critical ver Brokerage House, the oldest stock managed to attract $330 billion pesos and began to fulfill all the instances and situation. brokerage firm in the country and that in custody and administration, which requirements for the permit to start In March of 1996 an extraordinary had been receiving help from the ranks it as the fifth financial group in operations as an independent invest- shareholder's meeting was called in authorities for several years. Bursamex terms of assets in the country. which new shareholders were invited was founded in the 50’s under the name Invest intelligently • Actinews | 3

By Alonso Madero Rivero • Director of Investments Investment Strategy E-mail: [email protected] ment in domestic consumption. • Industrials and Materials: The a direct impact with the possibility QUETZAL – Variable Rate Themed Fund. new investment opportunities of greater credit growth due to the Telecommunications and competition arising from the opening of the improvement in legal certainty and law: sector combined with cheaper transparency. Investment fund with a focus on With the correct implementation of weight of investment (energy sector) • Media and Telecommunica- energy costs, will contribute to • Discretionary Consumption: businesses linked to the potential for the reforms, for the first time, there is a through increased indebtedness. tions: The increase in competition in reducing the costs of entry into new indirectly, increased competition growth in Mexico as a result of the possibility to achieve a high and • The difference with the open- the sector will come from an business and will contribute to the and availability of credit should recent reforms approved in the coun- sustained growth with stability in ing of the economy with the NAFTA increase in foreign direct investment creation of a virtuous circle. cause a drop in the rates, resulting in try: the energy, financial, telecommu- prices, annual GDP growth of 5% and agreement, is the inclusion of larger through new tenders in the sector. • Financial institutions: an increase in the consumption of nications, economic competition and inflation of 3%, not seen since the regions to development due to the The regulations aimed to reduce the Directly, they will benefit from a the population in general. labor reforms. The fund will invest in period of so-called 'stabilizing devel- wider nature of the sectors: energy, market share of the dominant play- greater demand for credit from com- all types of shares (large, medium and opment'. mining and tourism. ers will also facilitate the entry of panies seeking to exploit business As is clear, there are many opportu- small), as well as in alternative assets • The reforms will also contrib- new players and will indirectly opportunities in the energy sector. nities to participate in the various (REITs). The main difference with This is not the first time that we are ute to the growth of the domestic benefit the small companies in the companies that will benefit, directly other equity funds is in the selection of trying to increase the growth potential sector, unlike those carried out in the industry. Financial: or indirectly, from the reforms. How- assets based on the subject of invest- of the Mexican economy. Why is it mid 90's that were directed primarily • Industrial and infrastructure: ever, it is worth mentioning that due ment: Mexico's reforms. different this time? to the external sector. Energy: The greater participation of develop- to the specialized focus of the fund, The reforms touch the four basic • Manufacturing and Transport: ment banks through the drive of the universe of asset selection is much aspects of any economy in order to • All the reforms are designed to The final effect will be greater inclu- The drop in the cost of electricity credit to SMEs and infrastructure more limited than other funds; and the increase its human, physical, intellec- enhance economic growth. In the sion of other regions and a deepening and the promotion of competition in projects, will lead to a greater level number of companies in the invest- tual and financial capitals. The struc- 90's the reforms were also trying to of existing ones through greater com- different sectors will result in a of activity for companies engaged in ment portfolio will also be reduced. If tural reforms carried out in the 90's stabilize the economy. petitiveness. greater volume in the production and construction and infrastructure man- the correct implementation of these had the stability and transformation of • The reforms are intended to movement of people and goods. This agement. As well as those compa- reforms in Mexico is achieved, this the economy as their goal. Of these solve the problem of growth through How does the fund participate in this will directly and indirectly result nies engaged in the production of situation could result in the genera- two objectives the first has been greater public and private invest- Mexican momentum? positively in increased business materials for the construction of tion of a greater return over other consolidated and the second is part of ment. This is unlike the past, where traffic, benefiting companies such as infrastructure. equity funds in the medium term (3 to the current agenda, still to happen. the state was loaded with the full Through investment in equities and roads, ports and airports. • Financial institutions: There is 5 years). alternative assets (REITs) that participate directly or indirectly in business opportunities arising from the implementation of each of the reforms.

Labor: • Retail and mining sectors: Labor-intensive, so flexibilization in recruitment terms is an incentive for greater investment in the sector. • Financial institutions: Indirectly they will benefit from a greater migration of informal work- ers to the formal economy, expand- ing their potential customer base. • Discretionary consumption: the growth of credit and greater participation of formal employment and quality, will lead to an improve-

> Continued on page 6 4 | Actinews • Invest intelligently

The World of Investments ment in domestic consumption. • Industrials and Materials: The a direct impact with the possibility In this section we graphically present the evolution of the financial markets in comparative terms, based on new investment opportunities of greater credit growth due to the a $100 peso investment at the end of 2012. Telecommunications and competition arising from the opening of the improvement in legal certainty and law: sector combined with cheaper transparency. Investment fund with a focus on With the correct implementation of weight of investment (energy sector) • Media and Telecommunica- energy costs, will contribute to • Discretionary Consumption: Currency in Mexican Pesos businesses linked to the potential for the reforms, for the first time, there is a through increased indebtedness. Base 100 Dec 2012 tions: The increase in competition in reducing the costs of entry into new indirectly, increased competition growth in Mexico as a result of the possibility to achieve a high and • The difference with the open- 110 the sector will come from an business and will contribute to the and availability of credit should recent reforms approved in the coun- sustained growth with stability in ing of the economy with the NAFTA increase in foreign direct investment creation of a virtuous circle. cause a drop in the rates, resulting in try: the energy, financial, telecommu- prices, annual GDP growth of 5% and agreement, is the inclusion of larger 105 through new tenders in the sector. • Financial institutions: an increase in the consumption of nications, economic competition and inflation of 3%, not seen since the regions to development due to the The regulations aimed to reduce the Directly, they will benefit from a the population in general. labor reforms. The fund will invest in period of so-called 'stabilizing devel- wider nature of the sectors: energy, 100 market share of the dominant play- greater demand for credit from com-

all types of shares (large, medium and opment'. mining and tourism. itle ers will also facilitate the entry of panies seeking to exploit business As is clear, there are many opportu- T 95 small), as well as in alternative assets • The reforms will also contrib- Axis new players and will indirectly opportunities in the energy sector. nities to participate in the various (REITs). The main difference with This is not the first time that we are ute to the growth of the domestic benefit the small companies in the companies that will benefit, directly 90 other equity funds is in the selection of trying to increase the growth potential sector, unlike those carried out in the industry. Financial: or indirectly, from the reforms. How- assets based on the subject of invest- of the Mexican economy. Why is it mid 90's that were directed primarily • Industrial and infrastructure: ever, it is worth mentioning that due 85 ment: Mexico's reforms. different this time? to the external sector. Energy: The greater participation of develop- to the specialized focus of the fund, The reforms touch the four basic • Manufacturing and Transport: ment banks through the drive of the universe of asset selection is much 80 aspects of any economy in order to • All the reforms are designed to The final effect will be greater inclu- The drop in the cost of electricity credit to SMEs and infrastructure more limited than other funds; and the 41285 41299 41313 41327 41341 41355 41369 41383 41397 41418 41432 41446 41488 41502 41516 41530 41558 41572 41586 41600 41628 41642 41656 41670 41698 41712 41726 41740 41768 41782 41796 41810 41838 41852 41866 41879 41908 41922 increase its human, physical, intellec- enhance economic growth. In the sion of other regions and a deepening 41274 41474 41544 41614 41684 41754 41824 41894 and the promotion of competition in projects, will lead to a greater level number of companies in the invest- tual and financial capitals. The struc- 90's the reforms were also trying to of existing ones through greater com- Euro/Pesos Yen/Pesos Dólares/Pesos Real Bra/Pmx UDI/Pesos different sectors will result in a of activity for companies engaged in ment portfolio will also be reduced. If tural reforms carried out in the 90's stabilize the economy. petitiveness. greater volume in the production and construction and infrastructure man- the correct implementation of these In spite of the recent strength of the dollar, investing in currencies has not been a good business over the last two years. The currency had the stability and transformation of • The reforms are intended to that has shown the best performance is the UDI, followed by the dollar. The euro has dropped significantly but maintains a slight movement of people and goods. This agement. As well as those compa- reforms in Mexico is achieved, this the economy as their goal. Of these solve the problem of growth through How does the fund participate in this positive performance, while the yen and the Brazilian real are the currencies with the greatest losses. will directly and indirectly result nies engaged in the production of situation could result in the genera- two objectives the first has been greater public and private invest- Mexican momentum? positively in increased business materials for the construction of tion of a greater return over other consolidated and the second is part of ment. This is unlike the past, where traffic, benefiting companies such as infrastructure. equity funds in the medium term (3 to the current agenda, still to happen. the state was loaded with the full Through investment in equities and Net comparative returns of of stock markets in dollars roads, ports and airports. • Financial institutions: There is 5 years). alternative assets (REITs) that partici- 160 pate directly or indirectly in business 150 opportunities arising from the implementation of each of the reforms. 140

130 Labor: • Retail and mining sectors: 120

Labor-intensive, so flexibilization in 110 recruitment terms is an incentive for US Dólares 100 greater investment in the sector. • Financial institutions: 90

Indirectly they will benefit from a 80 greater migration of informal work- ers to the formal economy, expand- 70 ing their potential customer base. 60 41274 41327 41383 41446 41502 41558 41614 41670 41726 41782 41838 41894 • Discretionary consumption: Nasdaq S&P 500 Dow Jones IPC de la BMV Bovespa Dax Nikkei the growth of credit and greater In spite of the recent adjustments in international stock markets, the most profitable in terms of US dollars has been the NASDAQ, followed by Standard & Poors, and Dow Jones. That is, the American stock markets have been the most profitable. Germany and participation of formal employment Japan show lower yields due to the devaluation of their currencies. Emerging stock markets have shown negative returns, due to the and quality, will lead to an improve- fall in stock prices and the devaluation of their currencies. The Mexican stock exchange has just gone gone from positive to negative returns with the strengthening of the dollar. Invest intelligently • Actinews | 5

ment in domestic consumption. • Industrials and Materials: The a direct impact with the possibility Evolution of metals prices in Pesos Base 100 December 2012 new investment opportunities of greater credit growth due to the 110 Telecommunications and competition arising from the opening of the improvement in legal certainty and 105 law: sector combined with cheaper transparency.

Investment fund with a focus on With the correct implementation of weight of investment (energy sector) 100 • Media and Telecommunica- energy costs, will contribute to • Discretionary Consumption: businesses linked to the potential for the reforms, for the first time, there is a through increased indebtedness. tions: The increase in competition in reducing the costs of entry into new indirectly, increased competition 95 growth in Mexico as a result of the possibility to achieve a high and • The difference with the open- the sector will come from an business and will contribute to the and availability of credit should recent reforms approved in the coun- sustained growth with stability in ing of the economy with the NAFTA 90 increase in foreign direct investment creation of a virtuous circle. cause a drop in the rates, resulting in try: the energy, financial, telecommu- prices, annual GDP growth of 5% and agreement, is the inclusion of larger 85 through new tenders in the sector. • Financial institutions: an increase in the consumption of nications, economic competition and inflation of 3%, not seen since the regions to development due to the 80 The regulations aimed to reduce the Directly, they will benefit from a the population in general.

labor reforms. The fund will invest in period of so-called 'stabilizing devel- wider nature of the sectors: energy, alor de $100 pesos inversión V 75 market share of the dominant play- greater demand for credit from com- all types of shares (large, medium and opment'. mining and tourism. ers will also facilitate the entry of panies seeking to exploit business As is clear, there are many opportu- 70 small), as well as in alternative assets • The reforms will also contrib- new players and will indirectly opportunities in the energy sector. nities to participate in the various (REITs). The main difference with This is not the first time that we are ute to the growth of the domestic 65 benefit the small companies in the companies that will benefit, directly other equity funds is in the selection of trying to increase the growth potential sector, unlike those carried out in the 60 industry. Financial: or indirectly, from the reforms. How-

assets based on the subject of invest- 41285 41299 41313 41327 41341 41355 41369 41383 41397 41418 41432 41446 41488 41502 41516 41530 41558 41572 41586 41600 41628 41642 41656 41670 41698 41712 41726 41740 41768 41782 41796 41810 41838 41852 41866 41879 41908 41922 of the Mexican economy. Why is it mid 90's that were directed primarily 41274 41474 41544 41614 41684 41754 41824 41894 • Industrial and infrastructure: ever, it is worth mentioning that due ment: Mexico's reforms. different this time? to the external sector. Oro Plata Cobre Energy: The greater participation of develop- to the specialized focus of the fund, The reforms touch the four basic • Manufacturing and Transport: ment banks through the drive of the universe of asset selection is much aspects of any economy in order to • All the reforms are designed to The final effect will be greater inclu- Investing in precious and industrial metals has given negative returns. Copper has returned to an area of weakness, while silver has been The drop in the cost of electricity credit to SMEs and infrastructure more limited than other funds; and the the most negative. increase its human, physical, intellec- enhance economic growth. In the sion of other regions and a deepening and the promotion of competition in projects, will lead to a greater level number of companies in the invest- tual and financial capitals. The struc- 90's the reforms were also trying to of existing ones through greater com- different sectors will result in a of activity for companies engaged in ment portfolio will also be reduced. If tural reforms carried out in the 90's stabilize the economy. petitiveness. greater volume in the production and construction and infrastructure man- the correct implementation of these had the stability and transformation of • The reforms are intended to movement of people and goods. This agement. As well as those compa- reforms in Mexico is achieved, this the economy as their goal. Of these solve the problem of growth through How does the fund participate in this will directly and indirectly result nies engaged in the production of situation could result in the genera- two objectives the first has been greater public and private invest- Mexican momentum? positively in increased business materials for the construction of tion of a greater return over other consolidated and the second is part of ment. This is unlike the past, where Evolution of interest rates in pesos traffic, benefiting companies such as infrastructure. equity funds in the medium term (3 to the current agenda, still to happen. the state was loaded with the full Through investment in equities and roads, ports and airports. • Financial institutions: There is 5 years). alternative assets (REITs) that partici- 7.5 pate directly or indirectly in business opportunities arising from the imple- 6.5 mentation of each of the reforms.

5.5 Labor: • Retail and mining sectors: Labor-intensive, so flexibilization in 4.5 recruitment terms is an incentive for Rendimiento anual a vencimiento % greater investment in the sector. 3.5 • Financial institutions: Indirectly they will benefit from a 2.5 greater migration of informal work- 41285 41299 41313 41327 41341 41355 41369 41383 41397 41418 41432 41446 41488 41502 41516 41530 41558 41572 41586 41600 41628 41642 41656 41670 41698 41712 41726 41740 41768 41782 41796 41810 41838 41852 41866 41879 41908 41922 ers to the formal economy, expand- 41274 41474 41544 41614 41684 41754 41824 41894 Cetes 91 días Cetes 360 días M3A MDic24 MNov38 ing their potential customer base. • Discretionary consumption: During the first quarter of last year we saw an exaggerated drop in rates in pesos of varying maturity periods. That was followed by a bullish trend that reached its peak last October. We then saw a second phase of a reduction in rates, influenced by the reduction in the Bank of the growth of credit and greater Mexico's reference rate. In the last three months we have been observing the start of an upward trend in rates that we believe could last participation of formal employment several years while US dollar rates return to normal. and quality, will lead to an improve- 6 | Actinews • Invest intelligently

Investment Strategy | page 3 international investment to end up in How can we take better advantage Diversification allows you to Treasury Bonds, although this move- of this volatility and the possibility of reduce market volatility in your ment was not considered a flight to recovery in the markets? Everyone portfolio. Either through investment in domestic consumption. • Industrials and Materials: The a direct impact with the possibility quality as it didn't occur in the context has a different level of risk aversion. ment funds, our fund of funds, or new investment opportunities of greater credit growth due to the of panic, which is when global money In investments it is always important through our Alfa portfolios. Telecommunications and competition arising from the opening of the improvement in legal certainty and seeks refuge in US Treasury Bonds to remember that health goes before law: sector combined with cheaper transparency. due to panic. money. Investment decisions should 2. For a conservative investor, Investment fund with a focus on With the correct implementation of weight of investment (energy sector) • Media and Telecommunica- energy costs, will contribute to • Discretionary Consumption: The second trend, was widespread always be consistent with the profile Actinver is constantly designing businesses linked to the potential for the reforms, for the first time, there is a through increased indebtedness. tions: The increase in competition in reducing the costs of entry into new indirectly, increased competition in the prices of other asset classes. of the investor. If you are conserva- instruments that allow your portfo- growth in Mexico as a result of the possibility to achieve a high and • The difference with the open- the sector will come from an business and will contribute to the and availability of credit should Prices of raw materials plummeted, tive, and volatility in your portfolio lio to participate in the performance recent reforms approved in the coun- sustained growth with stability in ing of the economy with the NAFTA increase in foreign direct investment creation of a virtuous circle. cause a drop in the rates, resulting in including gold and hydrocarbons, as affects you greatly, it is best to adopt of the stock market with guarantee try: the energy, financial, telecommu- prices, annual GDP growth of 5% and agreement, is the inclusion of larger through new tenders in the sector. • Financial institutions: an increase in the consumption of of capital. For example warrants on nications, economic competition and inflation of 3%, not seen since the regions to development due to the The regulations aimed to reduce the Directly, they will benefit from a the population in general. baskets of shares or indexes give labor reforms. The fund will invest in period of so-called 'stabilizing devel- wider nature of the sectors: energy, market share of the dominant play- greater demand for credit from com- you protection of 97% of the all types of shares (large, medium and opment'. mining and tourism. ers will also facilitate the entry of panies seeking to exploit business As is clear, there are many opportu- invested capital and participate in small), as well as in alternative assets • The reforms will also contrib- new players and will indirectly opportunities in the energy sector. nities to participate in the various up to 70% of the performance of the (REITs). The main difference with This is not the first time that we are ute to the growth of the domestic benefit the small companies in the companies that will benefit, directly shares included in the basket. other equity funds is in the selection of trying to increase the growth potential sector, unlike those carried out in the industry. Financial: or indirectly, from the reforms. How- assets based on the subject of invest- of the Mexican economy. Why is it mid 90's that were directed primarily • Industrial and infrastructure: ever, it is worth mentioning that due 3. For a balanced or medium ment: Mexico's reforms. different this time? to the external sector. Energy: The greater participation of develop- to the specialized focus of the fund, investor: Take out loans at very low The reforms touch the four basic • Manufacturing and Transport: ment banks through the drive of the universe of asset selection is much rates to buy assets that can recover aspects of any economy in order to • All the reforms are designed to The final effect will be greater inclu- The drop in the cost of electricity credit to SMEs and infrastructure more limited than other funds; and the value in the short term. Actinver increase its human, physical, intellec- enhance economic growth. In the sion of other regions and a deepening and the promotion of competition in projects, will lead to a greater level number of companies in the invest- offers its investors financing at tual and financial capitals. The struc- 90's the reforms were also trying to of existing ones through greater com- different sectors will result in a of activity for companies engaged in ment portfolio will also be reduced. If very competitive rates to finance tural reforms carried out in the 90's stabilize the economy. petitiveness. greater volume in the production and construction and infrastructure man- the correct implementation of these purchases of debt in times of low had the stability and transformation of • The reforms are intended to movement of people and goods. This agement. As well as those compa- reforms in Mexico is achieved, this prices. the economy as their goal. Of these solve the problem of growth through How does the fund participate in this will directly and indirectly result nies engaged in the production of situation could result in the genera- two objectives the first has been greater public and private invest- Mexican momentum? positively in increased business materials for the construction of tion of a greater return over other 4. For an aggressive investor: consolidated and the second is part of ment. This is unlike the past, where traffic, benefiting companies such as infrastructure. equity funds in the medium term (3 to We have ETF's called Angel and the current agenda, still to happen. the state was loaded with the full Through investment in equities and roads, ports and airports. • Financial institutions: There is 5 years). alternative assets (REITs) that partici- Devil, with which you can earn pate directly or indirectly in business from the movements of the market opportunities arising from the imple- in both directions. Angel gives the mentation of each of the reforms. well as stock markets around the world conservative strategies. If on the investor market leverage so that if Financial Advice with average adjustments of around other end, you are a born gambler, we the market rises, Angel gives Labor: 10% in relation to their recent highs. recommend always taking measured double the performance of the stock • Retail and mining sectors: HOW DO I TAKE ADVANTAGE OF MARKET Our opinion at Actinver is that the decisions, even though the strategy market index. Devil allows you to Labor-intensive, so flexibilization in appreciation of the dollar has been involves a risk, and always keeping earn one to one if the stock market recruitment terms is an incentive for VOLATILITY IN MY PORTFOLIO? exaggerated, and should correct itself portfolios well diversified. falls. But if the stock market moves greater investment in the sector. in the coming weeks. In addition, it is At Actinver our offering is very in the opposite direction to the • Financial institutions: In recent weeks, volatility has September and early October, were the previously a taboo for the European important to note that the most recent wide to be able to move in all types of expectation, in Angel you loose Indirectly they will benefit from a returned to international financial announcements by the European Central Bank. figures from the US economy, the environments. For an environment of double what the stock market falls, greater migration of informal work- markets after several months of stabil- Central Bank about measures through At the same time the value of the main engine of the global economy volatility with possibilities of market and in Devil you can lose one to ers to the formal economy, expand- ity. The situation deteriorated suddenly which it significantly lowered its inter- dollar shot up against most major and that of Mexico, are very positive. recovery, we can suggest the follow- one if the stock market rises. ing their potential customer base. with a very significant upturn of the est rates and announced a more exten- currencies, we also saw two addi- The drop in prices of raw materials ing strategies: • Discretionary consumption: dollar in relation to most foreign sive and far-reaching program to tional trends. The first was a drop in and of hydrocarbons in particular For more information, ask your the growth of credit and greater currencies. The initial catalyst of this purchase assets that even includes the the long-term interest rate in US could bring a very low future infla- 1. For the very conservative investment advisor so you can reach a participation of formal employment trend, which was heightened in late purchase of government securities, dollars, causing significant flows of tion, despite the excessive creation of investor: We can only recommend more informed decision about these and quality, will lead to an improve- money by central banks. having a well diversified portfolio. funds.

> Continued on page 7 Invest intelligently • Actinews | 7

international investment to end up in How can we take better advantage Diversification allows you to Treasury Bonds, although this move- of this volatility and the possibility of reduce market volatility in your ment was not considered a flight to recovery in the markets? Everyone portfolio. Either through invest- quality as it didn't occur in the context has a different level of risk aversion. ment funds, our fund of funds, or of panic, which is when global money In investments it is always important through our Alfa portfolios. seeks refuge in US Treasury Bonds to remember that health goes before due to panic. money. Investment decisions should 2. For a conservative investor, The second trend, was widespread always be consistent with the profile Actinver is constantly designing in the prices of other asset classes. of the investor. If you are conserva- instruments that allow your portfo- Prices of raw materials plummeted, tive, and volatility in your portfolio lio to participate in the performance including gold and hydrocarbons, as affects you greatly, it is best to adopt of the stock market with guarantee of capital. For example warrants on baskets of shares or indexes give you protection of 97% of the invested capital and participate in up to 70% of the performance of the shares included in the basket.

3. For a balanced or medium investor: Take out loans at very low rates to buy assets that can recover value in the short term. Actinver offers its investors financing at very competitive rates to finance purchases of debt in times of low prices.

4. For an aggressive investor: We have ETF's called Angel and Devil, with which you can earn from the movements of the market in both directions. Angel gives the well as stock markets around the world conservative strategies. If on the investor market leverage so that if with average adjustments of around other end, you are a born gambler, we the market rises, Angel gives 10% in relation to their recent highs. recommend always taking measured double the performance of the stock Our opinion at Actinver is that the decisions, even though the strategy market index. Devil allows you to appreciation of the dollar has been involves a risk, and always keeping earn one to one if the stock market exaggerated, and should correct itself portfolios well diversified. falls. But if the stock market moves in the coming weeks. In addition, it is At Actinver our offering is very in the opposite direction to the In recent weeks, volatility has September and early October, were the previously a taboo for the European important to note that the most recent wide to be able to move in all types of expectation, in Angel you loose returned to international financial announcements by the European Central Bank. figures from the US economy, the environments. For an environment of double what the stock market falls, markets after several months of stabil- Central Bank about measures through At the same time the value of the main engine of the global economy volatility with possibilities of market and in Devil you can lose one to ity. The situation deteriorated suddenly which it significantly lowered its inter- dollar shot up against most major and that of Mexico, are very positive. recovery, we can suggest the follow- one if the stock market rises. with a very significant upturn of the est rates and announced a more exten- currencies, we also saw two addi- The drop in prices of raw materials ing strategies: dollar in relation to most foreign sive and far-reaching program to tional trends. The first was a drop in and of hydrocarbons in particular For more information, ask your currencies. The initial catalyst of this purchase assets that even includes the the long-term interest rate in US could bring a very low future infla- 1. For the very conservative investment advisor so you can reach a trend, which was heightened in late purchase of government securities, dollars, causing significant flows of tion, despite the excessive creation of investor: We can only recommend more informed decision about these money by central banks. having a well diversified portfolio. funds. 8 | Actinews • Invest intelligently

Fund Yields

Funds Yield 2014* Yield 2013 Last 12 months* ACTIREN 0.42% 0.92% 0.40% ACTIMED 2.45% 3.01% 2.40% ACTIGOB 1.36% 2.08% 1.43% AGOB+ 2.97% 2.95% 3.12% ALTERNA 2.58% 3.25% 2.76%

Funds Yield 2014* Yield 2013 Last 12 months* ACTICOB In Pesos 3.78% 1.69% 4.12% In Dollars 0.74% 0.24% 0.52%

Funds Yield 2014* Yield 2013 Last 12 months* ACTIVCR 2.03% 4.51% 3.51% ACTIVPA 1.82% 3.63% 2.79% ACTIVCO 1.69% 3.09% 2.09% DINAMO In Pesos 7.05% NA NA In Dollars 3.68% NA NA

Funds Yield 2014* Yield 2013 Last 12 months* ACTIVAR 0.14% -2.28% 5.39% ACTICRE 6.09% 4.67% 9.57% ACTIPAT 3.17% 5.24% 8.96% OPTIMO 12.67% 9.43% 17.60% MAYA 3.64% 3.63% 9.50% ACTI500 In Pesos 3.37% 31.51% 12.56% In Dollars 0.73% 29.64% 8.62% ACTIUS In Pesos 2.21% 28.61% 9.92% In Dollars -0.40% 26.77% 6.07% ACTINEM In Pesos -4.00% -4.89% -5.74% In Dollars -6.45% -6.24% -9.04%

Funds Yield 2014* Yield 2013 Last 12 months* OPORT1 -0.75% -4.96% -1.62% ACTINMOB 10.03% NA 17.00% ACTICOMM In Pesos -8.70% NA -6.64% In Dollars -11.03% NA -9.90% ACTOTAL* 1.79% NA NA

Translation by Alice Owen /[email protected] Yields on October 15, 2014. B3 series. * Annual yields. Past performances do not guarantee future returns.

Call us at 1103-6699 within D.F. Or toll free 01-800-705-5555 anywhere in Mexico. actinver.com

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This newsletter is provided for informational purposes only. Its contents should not be regarded as an offer or recommendation to buy or sell. The information included has been obtained from sources considered reliable. Actinver, any of its subsidiaries, and their staff assume no responsibility for the information contained or its interpretation. The opinions of the authors may not coincide with those of Actinver. © Copyrights due process pending.