Performance Report – Mexican Mutual Fund Investments in Cross-Border Funds and ETFs – December 2014

Excel workbook detailing, over various time periods, returns of each international fund/ETF receiving investments from Mexican Mutual Funds. Data as of December 31, 2014.

Companies mentioned in this report: Aberdeen; BBVA; BlackRock; BNP Paribas; EDM; Fidelity; First Trust; Franklin Templeton; Global X; Henderson; ING; Investec; iShares; JP Morgan; MFS; Morgan Stanley; Oppenheim; Pioneer; PowerShares; Principal; ProShares; Robeco; Santander; Schroders; State Street; Van Eck; Vanguard; WisdomTree.

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Academic report criticizes status quo of Peruvian pension system

Academics María Amparo Cruz-Saco, Juan Mendoza and Bruno Seminario, find three basic errors in the existing models: they criticize the attempt to finance pensions through a tax on workers’ wages in a market where about two-thirds of employment is informal, they find ample evidence that people are saving voluntarily for old age outside of the system, and they argue that existing law is “suffocating” initiative and competition between AFPs.

Natixis Global AM begins Latin American rollout with new Mexico City office

The opening of the office in Mexico City is Natixis Global AM's first effort to be present in Latin America and build a regional business. It is part of an ambitious plan that will also see the opening of two new offices in 2015, in strategic Latin American cities, Fund Pro Latin America has learned.

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Russell Investments: Global squeeze play continues as central bankers embark on diverging paths

"As high valuations persist, especially in the US, and yields remain low, due to historically unorthodox easing policies from global central banks, investors are faced with a challenge to achieve their real goals in a low-return world, often squeezing many to riskier assets," said Jeff Hussey (photo), Russell's global chief investment officer.

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Itaú’s Setubal mentions Banamex as potential entry to Mexico

Itaú's interest in Banamex, which was acquired by Citigroup in August 2001 for USD12.5 billion, comes as Roberto Egydio Setubal (photo) seeks to build the São Paulo-based lender into the largest Latin American financial conglomerate.

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Chilean insurers hold less than 3% of their portfolio in cross-border funds

Jorge Claude, general manager of the Chilean Insurance Association, said the bulk of life insurer investment, both inside and outside the country, focuses on fixed income since these instruments can be used to match the companies’ long-term payment commitments.

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Scotiabank to acquire Citibank’s retail and commercial banking operations in Peru

"This acquisition is in line with our strategy to increase our scale within the Peruvian banking sector, as well as the other Pacific Alliance economies of Mexico, Colombia and Chile," said Dieter Jentsch, group head of international banking at Scotiabank.

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State and municipal pensions barred from investing in local funds with international exposure

Local fund managers had been distributing their internationally-focused products to these Brazilian institutional investors through September 2014. However, a technical note (07/2014) issued by the MPS clarified that the RPPSs are not permitted to invest in international markets, even if the vehicle is local.

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Natixis: Institutional investors favor equities in 2015 but worry about generating stable short-term returns

While institutional investors are optimistic about equities in 2015, their outlook is tempered by market risks beyond their control and unknown liability risks ahead, particularly those linked to increased longevity.

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CCR Monthly Approval Report – December 2014

While Dimensional and Lazard led with four mutual funds registered in the month, BlackRock and Invesco each won approval for three funds of their own.

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