Mexico Fund: Attractively Valued With A Stable Outlook In MXN Terms
Portfolio Pulse from
The Mexico Fund (MXF) is trading at a significant 22% discount to its NAV, which is unusual. The fund's earnings outlook in local currency terms is stable due to Mexico's stable economy and recent election outcomes. However, potential depreciation of the Mexican peso next year poses a risk to the fund's returns.
December 08, 2024 | 9:00 am
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POSITIVE IMPACT
The Mexico Fund (MXF) is trading at a 22% discount to its NAV, which is unusual. The fund's earnings outlook is stable in local currency terms, but potential depreciation of the Mexican peso next year is a risk.
The significant discount to NAV suggests potential upside if the discount narrows. The stable earnings outlook in MXN terms is positive, but the risk of peso depreciation could impact returns. Overall, the discount presents an opportunity, hence a positive short-term impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100