Latin America Equity Indices - S&P Dow Jones Indices

Latin America Equity Indices

SCORECARD

Q3 2019

Contents

Commentary Latin America Mercado Integrado Latinoamericano (MILA) S&P Latin America BMI Sectors S&P MILA Sectors Top and Bottom Performers, S&P Latin America 40 Top and Bottom Performers, S&P MILA Pacific Alliance Argentina Brazil Chile Colombia Mexico Peru Top and Bottom Performers, S&P BVL Peru General Index Performance Disclosure General Disclaimer

3 4 4 5 5-6 7-8 7-8 9 10 11-12 13 14-17 18 19 20 21

CONTACT US:

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Michael Orzano, CFA

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Permission to reprint or distribute any content from this document requires the prior written approval of S&P Dow Jones Indices. Not for distribution to the public.

S&P Dow Jones Indices

Scorecard | Latin America

2

S&P Latin America Equity Indices Commentary: Q3 2019

The third quarter was a difficult one for the Latin American region. Meanwhile, it was a mixed bag for global markets--the U.S. ended on a slightly positive note, Europe on a negative one, and Japan also on a positive one, with global markets remaining nearly flat.

The S&P 500? ended the quarter up 1.7%, the S&P Europe 350? posted almost the exact opposite with -1.6%, while Japan's S&P/TOPIX 150 was up nearly 4%. Latin America's blue-chip index, the S&P Latin America 40, was down 6.3%. Many internal factors contributed to the region's underperformance, including reductions in exports, contractions in the industrial and service sectors, soft labor markets, political uncertainty, a slump in commodities prices, and low consumer sentiment. External factors also weighed heavily on the region, primarily the uncertainty surrounding trade negotiations between the U.S. and China.

While all Latin American markets ended in the red for Q3 2019, when comparing with USD-based returns, we noticed that, with the exception of Argentina and Peru, all markets in the region outperformed or were flat in local currency terms. This is an example of how currency depreciation can have an impact on performance. The biggest differences were seen in Brazil and Colombia, with the S&P Brazil BMI posting a return of -3.9% in USD but 4.2% in BRL, and, the S&P Colombia Select Index returning -5.7% in USD but a decent 2.3% in COP. Mexico's headline benchmark, the S&P/BMV IPC, generated a -2.6% total return in USD but was nearly flat in MXN (0.2%).

Overall, most currencies in the region saw significant depreciation during Q3 2019. Argentina led the pack in the depreciation rate for the quarter, with a fluctuation of nearly 60% between the highest and lowest rates. Brazil followed with a fluctuation of 16%, and Colombia followed with a change of nearly 11%.

Interestingly, sectors seemed to offer a clearer picture of the region. It was certainly a tough quarter for most economic sectors, although we still saw defensive sectors like Health Care and Consumer Staples were still able to post positive returns. Real Estate, Consumer Discretionary, and Information Technology also ended the quarter in positive territory. The Materials sector, which includes mining companies, was the worst-performing sector, followed by Financials.

Brazil was the best performer in the region for the quarter. Not surprisingly, most of the best-performing stocks were Brazilian, with BRF S.A., a Consumer Staples company, finishing at the top of the list among the constituents of the S&P Latin America 40, which seeks to track the performance of the leading 40 companies in the region. In terms of indices, the S&P/B3 Momentum Index, which focuses on the top companies in the Brazilian market that show persistence in their relative performance, as measured by their risk-adjusted price momentum score, had the best return for the quarter at 14.5%.

In Mexico, the momentum index was also a top performer among factor strategies. The S&P/BMV IPC CompMx Short-Term Momentum Index returned nearly 4%, significantly higher than the benchmark S&P/BMV IPC's return (0.2%). However, in Mexico, FIBRAS ruled, and the S&P/BMV FIBRAS Index had an outstanding quarter (10.5%), as much of its returns are attributable to the high yields FIBRAS generate. As of Sept. 30, 2019, the indicated dividend yield for the S&P/BMV FIBRAS Index was 8.1%.

Chile had a relatively flat quarter, with the S&P IPSA returning -0.2%. The worst performers were small-cap stocks, as measured by the S&P/CLX IGPA SmallCap (-7.1%). In terms of sectors, the S&P/CLX IGPA Consumer Staples did the worst (-8.4%). Meanwhile, the S&P/CLX IGPA Real Estate and the S&P/CLX IGPA Industrials had strong returns of 11.1% and 7.3%, respectively.

Peru and Colombia had difficult quarters, with Peru being the worst performer of the two. However, in both markets the best-performing stocks were from the Electric Utilities industry, proving the Utilities sector's defensive potential during challenging market environments.

As we enter the last quarter of the year, many are already looking forward to 2020. Most economists' consensus is that Latin America will continue to struggle with market volatility, stagnant economic growth, and political uncertainty. As an optimist, I think there are always investment opportunities in the short- and long-term horizon, despite the tough times. In fact, the diversity of our leading country and regional indices shows exactly that.

S&P Dow Jones Indices

Scorecard | Latin America

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S&P Latin America Equity Indices

Index Performance

Index Name

Currency Count QTD YTD 1-Yr 3-Yr 5-Yr

Global Indices

S&P 500

USD

505 1.7% 20.6% 4.3%

S&P Europe 350

USD

362 -1.6% 14.3% 0.0%

S&P/TOPIX 150

USD

150 3.6% 13.2% -3.8%

S&P Global 1200

USD

1219 0.7% 17.7% 2.5%

Latin America

S&P Latin America 40

USD

41 -6.3% 4.5% 4.4%

S&P Latin America BMI

USD

281 -3.9% 9.6% 11.0%

S&P Latin America Infrastructure

USD

24 -7.0% 3.8% 13.9%

Pacific Alliance (Chile, Colombia, Mexico, and Peru)

USD

-4.0% 3.9% -12.0%

CLP

3.3% 9.1% -2.4%

S&P MILA Pacific Alliance Composite COP

119 3.9% 11.3% 3.4%

PEN

-1.8% 3.9% -10.2%

MXN

-1.3% 4.3% -7.2%

USD

-4.4% 3.5% -11.3%

CLP

2.8% 8.7% -1.6%

S&P MILA Pacific Alliance Select

COP

62 3.5% 10.9% 4.2%

PEN

-2.2% 3.6% -9.5%

MXN

-1.8% 3.9% -6.4%

USD

-7.1% 1.6% -8.9%

S&P MILA Andean 40 Index

CLP COP

-0.1% 6.7% 1.0% 39

0.6% 8.9% 7.0%

PEN

-4.9% 1.7% -7.1%

13.4% 7.3% 7.1%

11.0%

7.6% 8.4% 3.2%

1.5% 5.0% 8.1% 1.1% 2.1% 3.0% 6.6% 9.7% 2.7% 3.7% 5.9% 9.5% 12.8% 5.5%

10.8% 3.0% 6.1% 7.9%

0.0% 0.2% -1.9%

-4.4% -0.5% 6.7% -1.4% 3.3% -3.4% 0.6% 7.8% -0.4% 4.4% -1.2% 2.8% 10.1% 1.8%

Std Dev

3-Yr 5-Yr

September 30, 2019

Index Fundamentals

P/E Trailing

P/E Div Forward Yield

P/B

P/S

P/CF

12.2% 11.9%

21.8

12.4% 13.1%

18.5

11.0% 12.6%

14.1

11.2% 11.5%

19.3

17.1 2.0 3.4 2.1 23.7 14.7 3.7 1.8 1.4 11.9 13.6 2.6 1.3 0.9 11.6 16.5 2.5 2.4 1.8 12.3

22.4% 24.7%

15.0

20.9% 23.2%

16.3

23.2% 23.7%

16.6

10.2 3.6 1.9 1.8 17.7 14.1 3.3 2.0 1.7 18.0 13.4 3.3 1.5 1.0 6.2

18.3% 17.7%

14.2% 13.4%

13.9% 12.9%

15.6

16.2% 15.2%

12.1% 11.2%

18.1% 17.7%

13.4% 12.9%

13.6% 12.6%

15.5

15.9% 15.2%

12.8% 12.1%

17.9% 19.3%

10.8% 12.7% 15.9

12.4% 11.4%

15.7% 16.6%

14.6 3.3 1.7 1.4 12.6 14.9 3.3 1.8 1.6 14.4 15.2 3.3 1.6 1.4 24.2

Source: S&P Dow Jones Indices LLC. Index performance primarily based on total return. Data as of September 30, 2019. Past performance is no guarantee of future results. Table is provided for illustrative purposes and reflects hypothetical historical performance. See the Performance Disclosure at the end of this document for more information regarding the inherent limitations associated with back-tested performance. "Std Dev" stands for Standard Deviation. "P/E" stands for price-to-earnings ratio. "P/B" stands for price-to-book ratio. "P/S" stands for price-to-sales ratio. "P/CF" stands for price-to-cash-flow ratio. "NM" stands for not meaningful.

Permission to reprint or distribute any content from this document requires the prior written approval of S&P Dow Jones Indices. Not for distribution to the public.

S&P Dow Jones Indices

Scorecard | Latin America

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S&P Latin America Equity Indices

Index Performance

Index Name

Currency Count QTD YTD 1-Yr 3-Yr 5-Yr

S&P Latin America BMI Sectors

Consumer Discretionary

USD

42

Consumer Staples

USD

34

Energy

USD

10

Financials

USD

44

Health Care

USD

11

Industrials

USD

40

Information Technology

USD

6

Materials

USD

32

Real Estate

USD

17

Communication Services

USD

11

Utilities

USD

34

S&P MILA Pacific Alliance Composite Sectors

Consumer Discretionary

USD

8

Consumer Staples

USD

20

Energy

USD

3

Financials

USD

26

Health Care

USD

1

Industrials

USD

18

Information Technology

USD

1

Materials

USD

17

Real Estate

USD

9

Communication Services

USD

5

Utilities

USD

11

3.5% 11.9% 30.0% 1.9% 18.9% 8.4% -6.9% 8.0% 13.7% -7.5% 8.7% 21.6% 12.6% 41.1% 49.2% -0.4% 13.3% 16.3% 12.9% 52.3% 28.6% -12.5% -10.0% -23.4% 4.7% 25.9% 23.4% -0.8% -0.3% -11.3% -2.4% 21.2% 47.9%

7.4% 0.6% 11.7% 14.4% 9.3% 6.3% -10.8% 9.5% 3.4% 2.3% 11.1%

0.8% -1.3% -1.9% 4.8% 3.2% -3.7% -9.1% -1.9% -5.5% -10.3% 5.4%

-8.1% -20.4% -29.9% -1.7% 7.8% -5.1% -9.4% -4.0% -33.4% -6.4% 8.3% -7.4% 5.6% 61.4% 9.5% -4.5% 1.5% -13.4% -11.7% -21.0% -17.7% -8.7% -5.8% -26.2% 7.6% 32.3% 8.9% 3.5% -1.0% -16.7% -3.4% 6.2% 4.0%

-13.5% 1.8%

11.8% 7.4% 0.8% -1.4%

-12.8% -4.8% 2.3% 5.3% 4.7%

-10.5% -0.5%

-10.8% -0.8% -6.4% -7.1%

-10.5% -8.3% -9.6% 0.3%

Std Dev

3-Yr 5-Yr

P/E Trailing

September 30, 2019

Index Fundamentals

P/E Div Forward Yield

P/B

P/S

P/CF

25.9% 25.5%

28.4

18.9% 17.4%

30.3

35.2% 45.2%

12.2

26.8% 28.6%

13.3

25.5% 28.5%

29.9

21.3% 20.7%

25.4

31.2% 32.4%

24.7

22.2% 27.7%

16.0

21.2% 21.1%

11.0

19.4% 21.0%

30.0

23.3% 24.1%

10.0

25.2 22.9

9.5 11.5 26.1 19.8 31.1 13.4 16.6 20.2 10.1

2.1 3.0 1.9 3.2 3.3 1.4 4.8 2.1 2.3 4.6 2.1 2.6 1.9 3.9 2.3 1.3 5.4 1.1 3.0 1.7 3.8 1.6

1.4 16.5 1.1 13.8 0.9 4.2 7.2 NM 3.7 24.6 1.3 9.6 5.4 NM 1.1 5.8 8.6 11.6 1.0 4.1 1.7 10.2

21.7% 19.9%

19.5

18.7% 17.0%

26.0

28.4% 29.6%

12.8

19.5% 19.0%

11.7

30.3% 29.6%

21.1

23.8% 21.8%

19.2

28.2% 26.6%

35.9

21.7% 23.9%

22.8

24.3%

-

9.0

21.4% 21.3%

16.2

18.8% 18.0%

12.2

17.8 1.8 1.6

22.2 2.5 2.6

12.7 4.9 1.6

11.3 3.4 1.8

16.8 -

2.6

16.9 3.2 1.8

23.7 1.4 1.6

14.6 3.8 1.1

13.3 6.4 0.9

13.9 1.9 2.6

13.6 4.4 1.5

0.9 8.0 1.1 12.2 0.9 6.1 6.1 NM 1.7 12.5 0.9 6.9 1.0 19.4 1.0 5.8 7.2 9.1 1.0 3.8 1.7 7.3

Source: S&P Dow Jones Indices LLC. Index performance primarily based on total return. Data as of September 30, 2019. Past performance is no guarantee of future results. Table is provided for illustrative purposes and reflects hypothetical historical performance. Please see the Performance Disclosure at the end of this document for more information regarding the inherent limitations associated with back-tested performance.

Permission to reprint or distribute any content from this document requires the prior written approval of S&P Dow Jones Indices. Not for distribution to the public.

S&P Dow Jones Indices

Scorecard | Latin America

5

S&P Latin America Equity Indices

Index Performance

Index Name

Currency Count QTD YTD 1-Yr 3-Yr

S&P MILA Andean Sectors S&P MILA Andean Financials S&P MILA Andean Resources S&P MILA Pacific Alliance Size Indices S&P MILA Pacific Alliance MidCap

S&P MILA Pacific Alliance MidSmallCap

S&P MILA Pacific Alliance SmallCap

USD CLP COP PEN USD CLP COP PEN

USD CLP COP PEN MXN USD CLP COP PEN MXN USD CLP COP PEN MXN

-5.7% 5.8% -2.3% 9.4% 1.4% 11.2% 8.2% 13.1% 12 2.1% 13.4% 14.7% 16.5% -3.5% 5.9% -0.4% 9.0% -10.8% -8.5% -27.0% 6.5% -4.0% -3.9% -19.1% 10.1% 12 -3.4% -2.0% -14.3% 13.4% -8.7% -8.5% -25.6% 6.1%

-3.0% 7.9% -7.1% 4.1%

4.4% 13.4% 3.0% 7.7%

18

5.1% 15.6% 9.2% 10.9%

-0.7% 8.0% -5.2% 3.8%

-0.2% 8.3% -2.0% 4.8%

-3.0% 7.1% -9.1% 1.2%

4.4% 12.5% 0.8% 4.7%

77

5.0% 14.8% 6.8% 7.8%

-0.7% 7.2% -7.3% 0.8%

-0.3% 7.6% -4.1% 1.9%

-2.9% 6.6% -10.7% -1.6%

4.5% 12.0% -1.0% 1.8%

59

5.1% 14.2% 4.9% 4.8%

-0.6% 6.6% -8.9% -1.9%

-0.2% 7.0% -5.8% -0.9%

5-Yr

2.8% 7.0% 14.7% 6.0% -4.6% -0.7% 6.4% -1.6%

-3.3% 0.7% 7.9% -0.3% 4.5% -3.3% 0.6% 7.8% -0.3% 4.4% -3.7% 0.2% 7.4% -0.7% 4.0%

Std Dev

3-Yr 5-Yr

P/E Trailing

September 30, 2019

Index Fundamentals

P/E Div Forward Yield

P/B

P/S

P/CF

16.0% 18.2% 10.4% 12.8%

13.5 10.3% 10.3% 14.2% 15.8% 23.2% 24.4% 16.8% 18.4%

23.6 18.6% 16.7% 21.2% 21.7%

13.2 3.0 1.8 4.8 NM 17.7 3.8 1.4 1.2 7.1

18.7% 18.4%

16.2% 15.4%

14.9% 13.7%

14.5

16.0 4.1 1.3 1.1 5.7

16.8% 16.0%

11.8% 11.5%

18.3% 17.7%

14.8% 14.0%

14.1% 13.3%

15.1

14.1 3.7 1.2 1.0 6.6

16.2% 15.2%

11.3% 10.7%

18.5% 17.6%

14.1% 13.5%

14.2% 13.9%

15.7

12.6 3.4 1.2 1.0 7.8

16.3% 15.2%

11.7% 10.9%

Source: S&P Dow Jones Indices LLC. Index performance primarily based on total return. Data as of September 30, 2019. Past performance is no guarantee of future results. Table is provided for illustrative purposes and reflects hypothetical historical performance. Please see the Performance Disclosure at the end of this document for more information regarding the inherent limitations associated with back-tested performance.

Permission to reprint or distribute any content from this document requires the prior written approval of S&P Dow Jones Indices. Not for distribution to the public.

S&P Dow Jones Indices

Scorecard | Latin America

6

S&P Latin America Equity Indices

Quarterly Performance - June 28, 2019, to September 30, 2019

Top Performers in the S&P Latin America 40

Company

BRF S.A. ADR Latam Airlines Group S.A.. ADR CCR S.A. Grupo Televisa SAB CPO Fibra Uno Administracion S.A. de C.V. Cielo SA Walmart de Mexico SAB de CV B3 S.A. - Brasil, Bolsa, Balcao Enel Americas S.A. ADR America Movil SAB de CV L

Country

Brazil Chile Brazil Mexico Mexico Brazil Mexico Brazil Chile Mexico

Price Change

20.5% 18.5% 16.8% 15.9% 10.4% 10.1% 8.6% 7.7% 2.7% 2.0%

September 30, 2019

Top Performers in the S&P MILA Pacific Alliance Select

Company

Alsea SA LATAM Airlines Group S.A. Grupo Televisa SAB CPO Fibra Uno Administracion S.A. de C.V. Gruma SAB B Walmart de Mexico SAB de CV Grupo Elektra S.A.B. de C.V. Kimberly Clark de Mexico S.A.B. de C.V. A Enel Americas S.A. Industrias Penoles

Country

Mexico Chile Mexico Mexico Mexico Mexico Mexico Mexico Chile Mexico

Price Change

18.1% 17.5% 15.9% 10.4% 9.0% 8.6% 8.4% 8.0% 3.8% 2.9%

Bottom Performers in the S&P Latin America 40

Company

Banco do Brasil

Gerdau SA ADR Banco Bradesco ADR Cencosud SA Empresas CMPC SA Ultrapar Participacoes S.A. Vale S.A. ADR SACI Falabella Embraer S.A (ADR) Empresas COPEC SA

Country

Brazil Brazil Brazil Chile Chile Brazil Brazil Chile Brazil Chile

Price Change

-22.0% -19.0% -17.1% -16.1% -15.2% -14.9% -14.4% -14.4% -14.3% -13.9%

Bottom Performers in the

S&P MILA Pacific Alliance Select

Company

Country

Grupo Carso SAB de CV

Mexico

Compania Cervecerias Unidas S.A.

Chile

Banco del Bajio, S.A.

Mexico

Cencosud SA

Chile

Empresas CMPC SA

Chile

SACI Falabella

Chile

Empresas COPEC SA

Chile

Empresa Nacional de Telecomunicaciones S.A. (ENTEL) Chile

COLBUN SA

Chile

Grupo Bimbo S.A.B.

Mexico

Price Change

-21.3% -20.7% -17.3% -16.2% -15.3% -14.4% -14.0% -13.9% -12.7% -12.6%

Source: S&P Dow Jones Indices LLC. Index performance primarily based on total return. Data as of September 30, 2019. Past performance is no guarantee of future results. Table is provided for illustrative purposes and reflects hypothetical historical performance. Please see the Performance Disclosure at the end of this document for more information regarding the inherent limitations associated with back-tested performance.

Permission to reprint or distribute any content from this document requires the prior written approval of S&P Dow Jones Indices. Not for distribution to the public.

S&P Dow Jones Indices

Scorecard | Latin America

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S&P Latin America Equity Indices

Annual Performance - September 28, 2018, to September 30, 2019

Top Performers in the S&P Latin America 40

Company

CCR S.A. Cia Energetica de Minas Gerais Pref ADR B3 S.A. - Brasil, Bolsa, Balcao BRF S.A. ADR Banco do Brasil Itausa Investimentos Itau S.A Pref Petrobras SA Pref ADR Petrobras SA ADR BanColombia SA ADR Latam Airlines Group S.A.. ADR

Country

Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Colombia Chile

Price Change

98.72% 98.25% 81.71% 67.15% 50.54% 27.18% 25.62% 19.88% 18.53% 18.09%

September 30, 2019

Top Performers in the S&P MILA Pacific Alliance Select

Company

Grupo Elektra S.A.B. de C.V. Enel Americas S.A. BanColombia SA Pref LATAM Airlines Group S.A. Interconexion Electrica SA ESP Compania de Minas Buenaventura S.A.A. Kimberly Clark de Mexico S.A.B. de C.V. A Fibra Uno Administracion S.A. de C.V. Parque Arauco SA Banco Davivienda SA Pref

Country

Mexico Chile Colombia Chile Colombia Peru Mexico Mexico Chile Colombia

Price Change

55.54% 18.87% 16.96% 16.24% 16.06% 14.36% 12.86% 11.20% 10.06% 5.80%

Bottom Performers in the

S&P Latin America 40

Company

Country

Ultrapar Participacoes S.A.

Brazil

Grupo Televisa SAB CPO

Mexico

Cemex SA CPO

Mexico

Empresas CMPC SA

Chile

SOQUIMICH - Sociedad Quimica y Minera de Chile SA BCAhDileR

Empresas COPEC SA

Chile

Ecopetrol SA ADR

Colombia

Cielo SA

Brazil

Alfa SA A

Mexico

SACI Falabella

Chile

Price Change

-51.73% -44.91% -44.46% -42.35% -39.22% -38.94% -36.76% -36.35% -31.84% -31.31%

Bottom Performers in the S&P MILA Pacific Alliance Select

Company

Grupo Televisa SAB CPO

Cemex SA CPO Empresas CMPC SA SOQUIMICH - Sociedad Quimica y Minera de Chile SA B Volcan Compania Minera S.A.A. B Empresas COPEC SA Ecopetrol SA Banco del Bajio, S.A. Alfa SA A Alsea SA

Country

Mexico Mexico Chile Chile

Peru Chile Colombia Mexico Mexico Mexico

Price Change

-44.9% -44.5% -42.4% -40.0% -39.5% -39.0% -37.7% -33.0% -31.8% -31.7%

Source: S&P Dow Jones Indices LLC. Index performance primarily based on total return. Data as of September 30, 2019. Past performance is no guarantee of future results. Table is provided for illustrative purposes and reflects hypothetical historical performance. Please see the Performance Disclosure at the end of this document for more information regarding the inherent limitations associated with backtested performance.

Permission to reprint or distribute any content from this document requires the prior written approval of S&P Dow Jones Indices. Not for distribution to the public.

S&P Dow Jones Indices

Scorecard | Latin America

8

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