HANetf and Finamex list Mexican fixed income ETF

UCITS ETF issuer HANetf has partnered with Mexican broker Casa de Bolsa Finamex, SAB de CV ‘Finamex’ to launch their first UCITS ETF: Finamex Mexico International Sovereign Bond 5-10yr UCITS ETF (Ticker: MEXS). This is the first fixed income ETF launched on the HANetf platform.

Finamex Mexico International Sovereign Bond 5-10yr UCITS ETF (Ticker: MEXS) will be listed on London Stock Exchange in March 2022. The ETF will list on Bolsa Mexicana de Valores (BMV) at a later date. 
The ETF is focused on the UMS Mexican Fixed Income Market and will track the S&P/BMV Sovereign International UMS 5-10 years target maturity 30 per cent capped bond index.

The objective of the fund is to have exposure to the UMS Mexican Fixed Income Market. Constituents must be Mexican government securities issued outside of Mexico in US dollars with maturities between five and 10 years. It tracks the S&P/BMV Sovereign International UMS 5-10 year target maturity 30 per cent capped bond index.

The firm writes that Mexico is well positioned macroeconomically relative to other LatAm countries, having one of the lowest debt to GDP ratios and more fiscal space. Mexico Government debt is one of the most liquid and actively traded in the market. Given its investment grade status, its open economy, and its position as one of the largest emerging market economies, Mexican debt is an asset held by many asset managers, the issuers say.

This ETF will provide the opportunity to have a continuous duration exposure to Mexican dollar denominated debt, while taking into consideration liquidity factors for its components, the issuers say. This will be the first time a Mexican financial services firm will list its own UCITS ETF on BMV. 

Eduardo Arturo Carrillo Madero, CEO of Casa de Bolsa Finamex says: “We are very excited to launch our first UCITS ETF product in partnership with HANetf. We have seen local Mexican demand grow for these constant duration products in the last few years. Mexican bonds are one of the most liquid in Emerging Markets and clients continuously look for exposure to Mexico in dollar denominated bonds. We are proud to put the Mexico name along with Finamex and think products like these can further help the Mexican government achieve a greater depth in their future offshore financing needs.”

Hector McNeil, Co-CEO of HANetf says: “We are excited to partner with Finamex to launch the Finamex Mexico International Sovereign Bond 5-10yr UCITS ETF (Ticker: MEXS) in Mexico and Latin America. The demand for UCITS ETFs are increasingly growing among investors due to strong regulation and structure, coupled with strong distribution of products through brokers such as Finamex.  Finamex will be the first Mexican firm to use HANetf to launch an ETF and is being developed primarily to be sold to Mexican investors. MEXS will also be the first bond ETF on the HANetf platform. Fixed income ETFs are a product group we want to expand over time to align with our market leading thematic, crypto and commodity ETFs and ETPs.”

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