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Message to our Members

Report of the General Director

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AMIB Members

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Executives

Report of the General Director

>Efrén Del Rosal Calzada >General Director

 

Looking at the past helps us better to understand the present, and will ultimately strengthen our actions in the future.

If we observe the incipient condition of our market before the nineties, we can easily perceive the evolution that brought us to this solid position today, a position that could be key to transforming our economy.

The change is clear in simple numbers:

• The daily value of shares traded on the market is now more than 530 million dollars, while one decade ago it was barely 100 million.
• Market capitalization rose 265% between 200 and 2007, and is now equivalent to 42% of GDP, compared to just 21% seven years ago.  In advancing further to the levels seen elsewhere in the world we will face daunting challenges, but we are determined to turn them into opportunities.
• The amount of net assets managed by Mexico's mutual funds grew by 1,404% between 1995 and 2007, a compound annual rate of 25%, and now stands at 851 billion pesos. The number of mutual fund investors rose 530% in the same period, an annual rate of 17%.

In the derivatives product market, activities have also reached a respectable level. MexDer began operating a scant nine years ago, but it is already among the world's 10 top futures market in terms of volume.

The terms and continuity of the yield curve in the local fixed-income market are a clear sign of qualitative progress in our bond market in general, as well as the success of recent economic policy measures, but their benefits go beyond the debt and money markets. They provide firm grounding for a vigorous mortgage market, and for consumer and business loans, areas in which our banks have built up a solid presence in a very short period of time,  attaining loan terms that were unimaginable even a decade ago.  They are also the basis for further securitization of mortgage portfolios and  many other asset classes, ranging from consumer financing, even for government agencies, to packaged support for major financial backing in infrastructure programs and state-owned enterprises. They also extend to state and municipal governments that have decided to seek fresh resources on the securities markets.

The message from our Chairman of the Board provides an overview of this annual report, so in this message from the General Director's office, I would like to offer some perspectives on various projects that we have been pursuing this past year, and which are expected to bring results well into the future.

At AMIB, our objectives for 2008 include numerous projects, among them:

• Inviting more issuers into the market, coordinating efforts through the Securities Market Business Promotion Committee.
• Promoting and supporting the successful placement of shares in the Exchange itself, on the terms and with the scope that its partners determine.
• Amending the Securities Market Act, including the articles pertaining to trust activity, so that mutual fund managers can offer comprehensive equity management services.
• Facilitating arbitrage and short sales in both fixed-income and equity markets, and to this end, activating the securities lending market.
• Expanding investment limits to allow retirement mutual funds to invest directly in equities, as well as in the full range of investment grade bonds and in mutual fund shares.  This measure is crucial in light of the new competitive focus of Mexico's Siefores, based on net yields and the family of five types of funds, which is a big step forward for CONSAR.  Retirement mutual funds can thus become more competitive, and earn higher yields in order to contribute more to workers' retirement income.
• Offering a more efficient price formation process by introducing the concept of Market Maker, which will begin operating in our market in 2008.

For fifteen years, we have been investing the resources necessary to make this a world-class market.  The challenge now is to stay abreast of the competition.

The Mexican Stock Exchange and AMIB are committed to following the path of competitiveness, which is why our priority now must be bringing in new issuers who have the vision described by our Chairman.  We must make an even greater effort than our global peers, because companies in Mexico still do not have a broad awareness of the benefits of going public--something we learned in our efforts thus far to explore and promote a more active involvement in our market. >>

 

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