MONTERREY, Mexico--(BUSINESS WIRE)--Fitch Ratings has published the report 'Outlook 2014: Bond Funds, Moderate Growth and Conservative Investment Strategies', which outlines the main factors that determine the trend of the bond funds sector in Mexico for the next year, based on current and historical information (five years); it also addresses the possible eventualities that could impact the industry, given an adverse environment.
The report highlights the favorable evolution that investment funds (IF) have had in Mexico, mainly due to the outstanding participation of bond funds, that throughout their history have represented a very important percentage in the net assets under management (AuM) of the sector, which have shown a growing and sustained performance, even during the several crises experienced by the markets. The AuM managed by bond funds as of August 2013 ($1,276.4 billion), registered an annual growth of 6.9%, which was lower than the registered the previous year (13.7%).
The report also refers to the stability shown by the number of funds and investors during the past three years, which was a result of an adaptation to clients' needs, based on their risk-adverse profile and liquidity requirements.
The document also highlights the group of Operators that manage bond funds, which during the August 2012-August 2013 period registered a growth rate above the growth registered by the sector (6.9%). The report underlines the conservative approach that managers have had during the last five years, that has been reflected in the composition of the fund's securities portfolio, which shows investment strategies that are mainly oriented to the government, banking, private and investment funds sectors.
Another relevant matter addressed in this document is the poor performance that bond funds had during the months referred in the report, after registering an average annual return of 2.60%, compared to the registered the previous period (4.24%); the outlook for 2014 shows that returns will remain stable and similar to inflation.
With respect to the bond funds ratings, Fitch notes that most of the changes made to the bond funds ratings during the last year resulted from methodological adjustments made by this rating agency, which are outlined in the special report 'Relevant Events of Bond Funds rated by Fitch' (Oct. 29, 2013).
The special report titled 'Outlook 2014: Bond Funds, Moderate Growth and Conservative Investment Strategies' is available at www.fitchmexico.com and www.fitchratings.com.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research: 2014 Outlook: Bond Funds (Moderate Growth and Conservative Investment Strategies)
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=725817
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