Mexico Stock Exchange Gets Its First Sustainability-Index Fund

11/23/12
Dow Jones Newswires


The Mexican Stock Exchange saw the launch Friday of a fund that will be linked to its Sustainability Index, a move that will encourage investment in companies with sustainable environmental, social and corporate governance practices.

The fund, run by the CI Casa de Bolsa brokerage house, will invest in the 23 companies currently listed on the sustainability index, which include mining company Grupo Mexico (GMEXICO.MX), cement maker Cemex (CEMEX.MX) and retailer Wal-Mart de Mexico (WALMEX.MX).

"This puts Mexico at the level of other countries with a vehicle for investment in sustainability," said Luis Tellez, chief executive of the stock exchange, at a meeting with reporters.

The companies listed on the sustainability index meet certain criteria in terms of responsible practices, including the efficient use of water, collaboration with communities and transparency.

The index was launched a year ago and has since shown twice the rate of growth of the exchange's benchmark IPC index, according to stock-exchange officials, who noted that sustainability is spreading throughout corporate Mexico in response to consumer demand.

Mr. Tellez said the list of companies on the index is expected to reach 25 at some point, with Grupo Financiero Santander Mexico a very likely candidate.