Latin America Equity Indices SCORECARD Q2 2019 Contents Commentary 3 Latin America 4 Mercado Integrado Latinoamericano (MILA) 4 S&P Latin America BMI Sectors 5 S&P MILA Sectors 5-6 Top and Bottom Performers, S&P Latin America 40 7-8 Top and Bottom Performers, S&P MILA Pacific Alliance 7-8 Argentina 9 Brazil 9-10 Chile 11-12 Colombia 13 Mexico 14-17 Peru 18 Top and Bottom Performers, S&P BVL Peru General Index 19 Performance Disclosure 20 General Disclaimer 21 CONTACT US: A. Silvia Kitchener Michael Orzano, CFA [email protected] www.spdji.com Director Sr. Director New York +1.212.438.2046 Beijing +86.10.6569.2770 212.438.3532 212.438.4732 +1.877.325.5415 Dubai +971.04.371.7131 [email protected] [email protected] London +44.207.176.8888 Hong Kong +852.2532.8000 Tokyo +813.4550.8463 Sydney +61.2.9255.9802 Mexico +52.55.1037.5290 Permission to reprint or distribute any content from this document requires the prior written approval of S&P Dow Jones Indices. Not for distribution to the public. S&P Dow Jones Indices Scorecard | Latin America 2 S&P Latin America Equity Indices Commentary: Q2 2019 As most global markets and regions have performed well in the first half of 2019, it is great to see that Latin America has kept up with its more developed regional counterparts, although at a slower pace. The S&P Latin America 40 was up 3.4% for the quarter and 11.5% YTD. Similarly, the broader S&P Latin America BMI with its 285 stocks returned 5.0% and 14.1%, respectively. The S&P 500®, S&P Europe 350®, and S&P Global 1200 had strong returns, ranging from 4% to 5% for the quarter and from 16% to 19% YTD. Sector indices in Latin America had a mixed quarter, with Health Care, Industrials, and Utilities outperforming, and Materials, Energy, and Communication Services posting negative returns. Looking at countries in the region, Brazil has continued to generate some of the best returns in South America, particularly when looking at risk- adjusted returns. The S&P Brazil BMI had a strong quarter, returning nearly 7% in BRL and just over 8% in USD. On the other hand, Mexico struggled to remain in positive territory for the quarter, with the total return version of the S&P/BMV IPC generating just over 1% for the quarter in MXN and over 2% in USD. For the year, however, Mexico has managed to hang on to decent returns, with the index hovering at nearly 6% YTD in MXN. Smaller markets like Chile, Colombia, and Peru had a challenging quarter. Colombia was nearly flat, while Chile and Peru posted negative returns, with the S&P IPSA returning almost -4% in CLP and the S&P/BVL Peru Select down nearly 3% in PEN. Last but not least, Argentina had an outstanding quarter, with the S&P MERVAL Index yielding nearly 25% in ARS for the period, although its mid-term volatility in local currency, as measured by standard deviation, was the highest in the region. Each country seems to be dealing with domestic issues, while also managing global matters that affect their respective markets. Several countries in the region are working toward economic reforms, like Brazil and its long-awaited pension reform, which has finally passed a critical first vote but still has many hurdles to overcome before it becomes law. Nevertheless, it is a step in the right direction for bringing growth to the Brazilian economy. Argentina’s economy has continued to struggle, although economists agree that, despite an economic contraction in 2019, there is still great potential for growth in 2020. Newly signed trade agreements between Mercosur and the EU promise to bring economic growth to Brazil and Argentina. Meanwhile, Mexico has had economic challenges of its own. There is a consensus among economists that, due to uncertainty of the government’s policies, investor confidence is weak in the country. The U.S.-Mexico-Canada trade agreement has still not been settled, and the recent resignation of Mexico’s finance minister adds to the instability and to the negative outlook of the country’s economy. Further south, Chile’s largest companies, including Empresas CMPC, Copec, and AntarChile, were affected by the drop in pulp and copper prices and weak demand for those products. Chile is also working with China to expand its trading options, with recent agreements between the two countries promising a new venue for Chilean agricultural exports. As we move to the second half of the year, it will be interesting to see how Latin American markets continue to develop amid reforms among neighbors and new policies with more distant countries, like the U.S. and China. S&P Dow Jones Indices Scorecard | Latin America 3 S&P Latin America Equity Indices June 28, 2019 Index Performance Std Dev Index Fundamentals P/E P/E Div Index Name Currency Count QTD YTD 1-Yr 3-Yr 5-Yr 3-Yr 5-Yr P/B P/S P/CF Trailing Forward Yield Global Indices S&P 500 USD 505 4.3% 18.5% 10.4% 14.2% 10.7% 12.2% 12.0% 21.1 17.0 2.0 3.3 2.1 24.6 S&P Europe 350 USD 362 4.7% 16.1% 2.6% 10.0% 1.9% 12.3% 13.2% 17.1 14.2 3.7 1.7 1.3 11.6 S&P Topix 150 USD 150 1.2% 9.3% -3.0% 8.9% 5.0% 11.1% 12.5% 13.4 12.8 2.6 1.2 0.8 9.9 S&P Global 1200 USD 1219 4.1% 16.9% 7.0% 12.5% 7.3% 11.2% 11.6% 18.5 16.1 2.5 2.3 1.8 11.9 Latin America S&P Latin America 40 USD 41 3.4% 11.5% 18.5% 12.3% 0.6% 22.0% 25.5% 16.0 10.6 3.4 1.9 1.8 18.4 S&P Latin America BMI USD 285 5.0% 14.1% 20.7% 11.9% -0.2% 20.6% 24.0% 15.5 12.9 3.1 1.6 1.4 13.2 S&P Latin America Infrastructure USD 24 7.1% 11.7% 19.8% 7.3% -2.0% 22.5% 23.6% 25.4 16.8 3.2 1.5 0.9 6.2 Pacific Alliance (Chile, Colombia, Mexico, and Peru) USD 0.0% 8.2% -4.6% 2.8% -3.8% 18.1% 17.7% CLP -0.4% 5.7% -0.7% 3.6% 0.2% 14.6% 13.8% S&P MILA Pacific Alliance Composite COP 135 0.8% 7.1% 4.4% 6.3% 7.1% 14.5% 12.9% 14.6 13.4 3.1 1.6 1.4 15.7 PEN -0.8% 5.8% -4.1% 2.8% -0.6% 16.0% 15.3% MXN -1.1% 5.7% -6.9% 4.2% 4.1% 11.7% 11.1% USD -0.2% 8.3% -3.4% 4.4% -3.0% 17.7% 17.7% CLP -0.6% 5.8% 0.5% 5.2% 1.0% 13.7% 13.3% S&P MILA Pacific Alliance Select COP 62 0.6% 7.2% 5.6% 7.9% 8.0% 14.2% 12.6% 15.1 13.6 3.1 1.8 1.5 13.6 PEN -1.0% 5.9% -2.9% 4.4% 0.2% 15.7% 15.3% MXN -1.3% 5.8% -5.7% 5.8% 4.9% 12.4% 11.9% USD -2.1% 9.4% -4.2% 9.0% -1.2% 17.2% 19.2% CLP -2.5% 6.8% -0.2% 9.9% 2.8% 10.8% 12.8% S&P MILA Andean 40 Index 39 13.8 14.1 3.2 1.4 1.4 53.4 COP -1.3% 8.3% 4.9% 12.7% 9.9% 13.1% 11.4% PEN -2.9% 6.9% -3.6% 9.1% 2.1% 15.4% 16.6% Source: S&P Dow Jones Indices LLC. Index performance primarily based on total return. Data as of June 28, 2019. Past performance is no guarantee of future results. Table is provided for illustrative purposes and reflects hypothetical historical performance. See the Performance Disclosure at the end of this document for more information regarding the inherent limitations associated with back-tested performance. "Std Dev" stands for Standard Deviation. "P/E" stands for price-to-earnings ratio. "P/B" stands for price-to-book ratio. "P/S" stands for price-to-sales ratio. "P/CF" stands for price-to-cash-flow ratio. "NM" stands for not meaningful. Permission to reprint or distribute any content from this document requires the prior written approval of S&P Dow Jones Indices. Not for distribution to the public. S&P Dow Jones Indices Scorecard | Latin America 4 S&P Latin America Equity Indices June 28, 2019 Index Performance Std Dev Index Fundamentals P/E P/E Div Index Name Currency Count QTD YTD 1-Yr 3-Yr 5-Yr 3-Yr 5-Yr P/B P/S P/CF Trailing Forward Yield S&P Latin America BMI Sectors Consumer Discretionary USD 41 8.5% 8.1% 23.3% 7.4% -1.9% 25.2% 25.8% 25.5 21.4 2.0 2.7 1.4 15.4 Consumer Staples USD 38 7.9% 16.6% 11.6% 0.8% -2.9% 18.2% 17.7% 32.1 21.4 2.0 2.9 1.0 12.4 Energy USD 9 -2.6% 16.0% 37.3% 21.7% -2.0% 34.9% 47.0% 8.6 12.0 2.8 0.8 0.6 2.2 Financials USD 44 8.3% 17.6% 40.1% 20.1% 5.4% 26.4% 29.8% 12.8 11.5 3.9 1.9 6.0 NM Health Care USD 11 21.9% 25.4% 24.6% 7.3% -1.8% 25.8% 29.0% 23.7 19.4 2.2 3.5 2.9 18.6 Industrials USD 38 9.0% 13.8% 21.6% 6.6% -4.3% 20.6% 20.6% 32.0 17.5 1.9 2.3 1.1 8.1 Information Technology USD 6 0.0% 34.9% 0.2% -15.0% -14.5% 31.2% 32.7% 20.8 24.8 2.2 3.1 4.3 NM Materials USD 34 -4.0% 2.9% -5.3% 18.4% -1.2% 21.1% 27.5% 16.4 8.9 3.4 1.4 1.1 6.0 Real Estate USD 17 7.1% 20.2% 17.2% 0.7% -7.5% 21.1% 21.8% 10.3 12.8 4.6 1.0 7.5 10.5 Communication Services USD 13 -1.0% 0.5% -17.7% 2.1% -7.8% 19.4% 21.3% NM 17.3 3.2 1.1 0.8 3.5 Utilities USD 34 8.9% 24.2% 49.7% 13.1% 4.1% 23.5% 24.9% 9.4 9.9 4.3 1.5 1.6 8.8 S&P MILA Pacific Alliance Composite Sectors Consumer Discretionary USD 11 -9.3% -13.3% -27.1% -11.6% -10.1% 21.4% 19.8% 21.6 19.0 2.0 1.6 0.9 8.9 Consumer Staples USD 24 3.4% 9.7% 3.9% 1.4% -1.2% 18.6% 17.2% 23.7 20.9 2.4 2.5 1.0 11.9 Energy USD 3 -10.1% 6.0% -17.1% 15.8% -11.3% 27.6% 29.7% 12.8 12.1 4.6 1.7 0.9 6.4 Financials USD 27 4.2% 15.7% 5.2% 10.0% -0.3% 19.2% 19.0% 10.8 11.8 2.9 1.4 4.1 NM Health Care USD 1 26.1% 52.8% 7.5% 1.1% -8.4% 29.3% 28.7% 16.7 12.2 - 2.5 1.6 11.7 Industrials USD 21 0.8% 6.3% 1.8% -0.6% -5.6% 23.0% 21.4% 18.7 14.1 2.8 1.7 0.8 6.2 Information Technology USD 1 -7.0% -10.5% -5.9% -7.2% -8.2% 27.6% 26.0% 78.1 26.9 0.6 1.7 1.0 20.8 Materials USD 19 -7.4% 3.2% -19.3% 1.0% -7.1% 21.2% 23.6% 19.3 11.7 3.6 1.2 1.1 6.2 Real Estate USD 10 0.7% 23.0% 2.7% - - - - 7.9 9.7 6.6 0.8 6.2 8.4 Communication Services USD 7 -3.9% -4.3% -22.4% 2.5% -6.8% 21.7% 22.3% 17.4 12.6 2.1 2.5 0.9 3.6 Utilities USD 11 2.2% 10.0% 6.4% 2.9% 0.7% 19.0% 17.9% 11.4 11.6 4.9 1.4 1.6 6.8 Source: S&P Dow Jones Indices LLC.