Latin America Equity Indices SCORECARD Q1 2017 Contents Commentary 3 Latin America 4 Mercado Integrado Latinoamericano (MILA) 4 S&P Latin America BMI Sectors 5 S&P MILA Pacific Alliance Composite Sectors 5 S&P MILA Andean Sectors 6 S&P MILA Pacific Alliance Size Indices 6 Top and Bottom Performers, S&P Latin America 40 7 Top and Bottom Performers, S&P MILA Pacific Alliance 7 Argentina 8 Brazil 8 Chile 9 Colombia 9 Mexico 9 Peru 10 Sector and Sub-Sector Indices 10 Top and Bottom Performers, S&P BVL Peru General Index 11 Performance Disclosure 12 General Disclaimer 13 CONTACT US: A. Silvia Kitchener Michael Orzano, CFA [email protected] www.spdji.com Director 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 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. 2 S&P Latin America Equity Indices Commentary: March 2017 Latin America delivered high performance for the first quarter of 2017. Overall, the region continued to outperform the rest of the world year-over- year. All five countries in the Latin American region posted positive returns for the quarter, as demonstrated by the S&P DJI country benchmarks. While Brazil led the pack for the best returns over the one-year period, Mexico made a strong comeback in 2017, with the S&P Mexico BMI returning nearly 16% in U.S. dollar terms for the quarter. The S&P Chile BMI posted a similar return of 15.8%, while the S&P Brazil BMI came in at 11.2%, the S&P Colombia BMI at 5.3%, and the S&P/BVL Peru General at 4.6%. The Pacific Alliance region includes Chile, Colombia, Mexico, and Peru, while the Latin America region also includes Brazil. At the regional level, all indices had similar returns for the quarter, with returns in USD benefiting from the best performance, compared with local currencies. Returns ranged from 15% for the S&P Latin America 40 to 14% for the S&P MILA Pacific Alliance Select. The performance of the regional sector indices are all calculated in U.S. dollars. These show that industrials had a good quarter, as the sector returned almost 20% for the Pacific Alliance region and 18% for the Latin American region. At the stock level, Mexico’s Grupo Elektra (68.3%), Chile’s LATAM Airlines Group (48.1%), and Brazil’s Cia Energetica de Minas Gerais PN ADR (44.3%) were the three best performers, based on their stock price change. Among the worst performers were Peru’s Graña y Montero (-55%), Brazil’s BRF S.A. ADR (-17%), and Mexico’s Controladora Vuela Compañía de Aviación S.A.B. de C.V. (-16%). Among indices with specific themes, the S&P Latin America Infrastructure Index had a strong quarter and equally strong year, with returns of 22.3% and 29.2%, respectively. Meanwhile, the Brazilian dividend indices continued to surprise the market with consistently high returns. The S&P Dividend Aristocrats Brasil returned 20.4% for the quarter and 58.6% for the 12-month period in U.S. dollar terms. The dividend index with the highest yield was the S&P Brazil Dividend Opportunities SmallMidCap, with a 12-month dividend yield of 5.4%. 3 S&P Latin America Equity Indices March 31, 2017 Index Performance Std Dev Index Fundamentals P/E P/E Div Index Name Currency Count QTD 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 6.1% 17.2% 10.4% 13.3% 12.9% 12.5% 24.4 18.5 2.0 3.1 2.2 13.0 S&P Europe 350 USD 363 7.7% 10.8% -0.8% 6.5% 16.7% 16.7% 24.0 15.5 3.5 1.8 1.4 9.6 S&P Topix 150 USD 150 4.1% 15.1% 6.0% 6.8% 16.5% 16.6% 17.0 14.9 2.1 1.4 0.9 6.9 S&P Global 1200 USD 1220 6.8% 16.1% 6.3% 9.8% 11.5% 11.3% 22.3 16.8 2.5 2.3 1.8 11.6 Latin America S&P Latin America 40 USD 42 15.0% 29.2% -1.9% -4.9% 26.1% 23.3% 13.9 13.9 2.2 1.2 1.2 4.6 S&P Latin America BMI USD 298 12.3% 24.3% -3.7% -5.6% 23.5% 21.2% 16.8 13.4 2.3 1.3 1.2 6.8 S&P Latin America Infrastructure USD 20 22.3% 29.2% -1.4% -2.5% 22.6% 20.5% 16.6 18.9 2.2 1.8 1.0 5.6 MILA (Chile, Colombia, Mexico and Peru) USD 13.7% 5.6% -4.4% -3.7% 17.4% 16.4% CLP 12.4% 4.5% 1.7% 2.4% 13.3% 12.7% S&P MILA Pacific Alliance Composite COP 157 9.6% 1.7% 8.7% 5.9% 13.3% 12.9% 18.4 16.8 2.1 1.7 1.5 13.8 PEN 10.3% 3.0% 0.4% 0.2% 15.6% 14.9% MXN 4.0% 16.0% 8.1% 4.0% 10.3% 10.1% USD 13.7% 8.1% -4.4% -3.4% 17.4% 16.5% CLP 12.4% 7.0% 1.7% 2.7% 13.2% 12.7% S&P MILA Pacific Alliance Select COP 65 9.6% 4.2% 8.7% 6.3% 13.2% 12.9% 19.7 17.2 2.1 1.9 1.7 15.9 PEN 10.3% 5.6% 0.4% 0.5% 15.7% 15.0% MXN 4.0% 18.8% 8.1% 4.4% 11.1% 10.7% S&P MILA Pacific Alliance Select Ex- USD 13.7% 8.8% -2.2% -2.2% 17.2% 16.7% 62 20.3 17.3 2.0 2.0 1.6 16.2 REITs* MXN 4.0% 19.6% 10.6% 5.7% 10.9% 10.9% USD 10.2% 19.4% -4.5% -6.8% 16.7% 15.5% CLP 8.9% 18.2% 1.6% -1.0% 12.3% 11.5% S&P MILA Andean 40 Index 39 16.7 15.9 2.1 1.5 1.5 36.1 COP 6.2% 15.0% 8.6% 2.5% 11.8% 11.5% PEN 6.8% 16.5% 0.3% -3.1% 15.0% 14.0% Source: S&P Dow Jones Indices LLC. Index performance primarily based on total return. Data as of March 31, 2017. 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. * The index was previously named S&P MILA Pacific Alliance Select Mexico Domestic. "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. 4 S&P Latin America Equity Indices March 31, 2017 Index Performance Std Dev Index Fundamentals P/E P/E Div Index Name Currency Count QTD 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 45 15.1% 15.6% -5.0% -5.0% 22.9% 21.5% 25.3 18.6 1.8 2.3 1.6 13.9 Consumer Staples USD 8 7.0% 29.0% -7.2% 10.1% 39.4% 33.9% 14.8 12.5 2.2 1.9 2.4 10.3 Energy USD 8 0.7% 49.2% -10.6% -16.7% 45.6% 39.8% NM 12.3 0.7 0.5 0.4 1.5 Financials USD 47 14.3% 33.3% 0.8% -0.3% 28.0% 24.9% 10.0 10.6 3.5 1.5 4.2 20.0 Health Care USD 10 11.8% 53.9% -1.3% -0.7% 23.4% 20.9% 23.1 19.0 4.2 2.6 2.7 15.5 Industrials USD 42 18.3% 10.1% -8.4% -5.4% 20.7% 19.0% 23.0 15.6 1.7 1.9 1.0 9.2 Information Technology USD 4 5.3% 9.7% -6.9% 0.0% 32.7% 28.7% 17.9 15.6 2.0 4.9 3.6 13.2 Materials USD 41 12.3% 52.3% -6.1% -9.7% 27.7% 25.3% 9.9 12.2 1.0 0.9 0.9 4.8 Real Estate USD 21 16.6% 0.6% -11.1% -9.5% 21.9% 21.5% 13.8 16.7 1.8 1.0 7.4 12.7 Telecommunication Services USD 7 13.0% 1.2% -8.8% -9.7% 26.0% 24.6% 43.5 18.2 2.3 1.9 1.0 4.1 Utilities USD 34 12.6% 31.3% 2.4% -4.7% 22.2% 20.3% 13.1 10.6 2.9 1.4 1.3 5.7 S&P MILA Pacific Alliance Composite Sectors Consumer Discretionary USD 16 14.7% -2.3% -4.2% -2.9% 19.2% 19.1% 27.0 21.0 1.0 2.7 1.8 11.1 Consumer Staples USD 27 15.8% -3.0% -1.4% -0.8% 18.2% 17.6% 23.9 22.3 2.3 2.6 1.1 12.4 Energy USD 3 8.1% 11.1% -26.1% -20.6% 27.0% 24.5% 42.1 12.7 0.7 1.4 1.0 6.7 Financials USD 30 9.8% 8.0% -4.4% -0.3% 17.7% 16.4% 10.9 12.6 3.0 1.4 3.7 NM Health Care USD 3 16.8% 41.9% -6.4% -1.8% 24.2% 22.0% 18.8 20.1 0.6 2.9 1.3 13.1 Industrials USD 24 19.8% 2.1% -5.1% -2.2% 19.6% 18.7% 22.2 16.0 1.6 1.7 0.9 8.1 Information Technology USD 1 -3.2% -9.1% -8.7% -8.5% 27.0% 25.7% 37.5 25.8 2.2 2.0 1.2 14.6 Materials USD 24 12.8% 28.9% -2.9% -5.4% 21.9% 20.3% 26.5 19.2 1.0 1.5 1.4 7.7 Real Estate USD 12 14.8% - - - - - 9.6 14.1 2.8 0.9 8.0 11.1 Telecommunication Services USD 5 11.9% -6.2% -6.9% -8.1% 28.0% 26.9% NM 18.3 1.8 3.8 0.9 3.9 Utilities USD 12 17.6% 7.8% 1.6% -0.5% 16.2% 15.3% 13.2 14.4 3.2 1.6 2.0 7.0 Source: S&P Dow Jones Indices LLC.