Finamex launches Mexican government bond ETF in Europe

Mexican brokerage Casa de Bolsa Finamex has launched the first ETF in Europe to target US dollar debt issued by the Mexican government, making it the first Mexican government bond fund in Europe.

Finamix Mexico International 5-10 Year Sovereign Bond Fund UCITS ETF It is listed on the London Stock Exchange in US dollars (trading symbol: Mix LN) and the pound sterling (MEXP LN).

The fund entered the market with London-based white label ETF HANetf, the first fixed income fund to be launched on the company’s platform.

This ETF comes with a cost ratio of 0.55%.

The fund provides investors with transparent and convenient access to Mexican international issues government bonds without having to make a significant investment in a relatively illiquid asset.

According to Finamex, Mexican government debt can attract investors because the country is in a good macroeconomic position compared to other Latin American countries, has a large and open economy and one of the lowest debt ratios in the region. Mexico The credit ratings are also investment grade (currently BBB), which makes state debt also suitable for more conservative pension and donation funds and institutions.

Commenting on the launch, Eduardo Arturo Carrillo Madero, CEO of Casa de Bolsa Finamex said:We are pleased to launch our first UCITS ETF in collaboration with HANetf. We have seen the domestic Mexican demand for these products grow for a steady period in recent years. Mexican bonds are one of the most liquid in emerging markets and clients are constantly looking for exposure to Mexico in dollar-denominated bonds. We believe that such products can help the Mexican government achieve greater depth in its future foreign financing needs.

Hector McNeill, Co-CEO of HANetf, added: We are pleased to partner with Finamex to launch the Finamex Mexico International Sovereign Bond 5-10yr UCITS ETF. The demand for UCITS ETFs is increasing among investors due to strong regulation and structure, along with strong product distribution through brokers such as Finamex.

systematic or systemic

The ETF is tied to the S&P/BMV Sovereign International UMS 5-10 Year Index ETF with a target maturity of 30% of a maximum bond index consisting of Mexican government securities with five to ten year maturities that are issued in US dollars outside Mexico. Only bonds with a minimum nominal amount of US$1 billion are eligible for listing.

The index has at least 6 components and can venture outside the specified requirements, while bonds with strong liquidity points are given priority to reach this limit.

Items are weighted according to market value while the weight of an individual bond is limited to 30%. The balance is rebalanced every three months.

The duration of the index has been revised 6.45 years.

Trading ETF MEXS

Finamex Mexico International 5-10 Year Sovereign Bond Fund UCITS ETF (MEXS) It is a European exchange-traded fund that is traded on the London Stock Exchange.

The London Stock Exchange is a market that a few Swedish banks and online brokers provide access to Dejero Do it.

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