Mar 18, 2013

Analysis: Mexico's reforms hook U.S. investors

By Daniel Bases
New York, Mar 18, 2013

(Reuters) - Don't be fooled by the Mexican stock market's slow start to the year. The country's push for economic reforms and the revival of the economy of its largest trading partner, the United States, are stirring investor interest in Latin America's No. 2 market.

International fund managers say recent announcements of reforms to Mexico's education system and telecommunications sector provide a positive backdrop for U.S. investors to keep putting roughly 30 percent of their allocations for Latin America into Mexican stocks and bonds.

"You saw a lot of optimism around elections and the potential reforms," said Darren Capeloto, portfolio strategist focused on Latin America at Payden & Rygel in Los Angeles.

Mexican President Enrique Pena Nieto, in office since December, has managed to reach agreement with opposition lawmakers to push through reforms, the most important of which will be in the state-dominated energy sector this summer.  Read more. 

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