FINADIN

COMPANY NAME: Fondo Dinámico Finamex S.A. de C.V.
TICKER SYMBOL:
FINADIN
CATEGORY: "LONG TERM"
COMPANY ADDRESS: Torre New York Life Paseo de la Reforma No 342Piso 27 Col. Juárez México, D.F. CP 06600, México Tel. +52(55)5209-2000
COMPANY NAME OF THE OPERATOR: Finamex Inversiones, S.A. de C.V.
COMPANY NAME OF THE DISTRIBUTORS: Casa de Bolsa Finamex, S.A.B. de C.V.
COMPANY WHERE THE ASSETS SUBJECT TO INVESTMENT ARE DEPOSITED AND HELD: S.D. Indeval, S.A. de C.V.

The objective of the Fund is to offer investors the option of investing in a portfolio of debt instruments that are primarily corporate, both domestic and foreign, as well as in state-run production companies, with a long-term investment strategy.

 

RISK MANAGEMENT

 

I. QUALITATIVE INFORMATION

Finamex Inversiones, with the goal of having a higher level of competency and taking into account the growing complexity and volatility of the financial markets, has reinforced its Risk Analysis structure. We have implemented control systems to monitor and optimize the risk-benefit relationship in a timely and complete way, establishing policies, limits and controls for the different lines of business, and determining the capital necessary for protection. Risk control is managed by the following internal bodies:

  1. BOARD OF DIRECTORS
  • Meets on a quarterly basis
  • Authorizes the methodology and maximum risk tolerance levels
  • Reviews positions and risk quantifications on a quarterly basis
  1. RISKS COMMITTEE
  • Meets on a monthly basis
  • Proposes methodology and maximum tolerance levels
  • Authorizes lines of credit and counterparty lines
  • Monitors limits and risk tolerance levels
  1. RISK MANAGEMENT UNIT
  • Identifies, quantifies and reports risk exposure on a daily basis
  • Monitors and ensures daily compliance with the authorized risk limits for each executive and at the aggregate level
  • Risk quantification is carried out using technological tools such as “VaR Global”, “SIF” internal systems, together with a database that has the following sources of information: Bloomberg, Price vendor and pages for Regulatory Institutions.

 

REVIEW METHODOLOGY BY TYPE OF MARKET RISK

The Market Risk quantification and measurement methodology is based on three processes:

  • VALUE AT RISK.- The operator uses the VaR to quantify the market risk, which should be read as the loss that, at a confidence level of 95%, would not be exceeded within the time horizon considered, which in our case is one day, which is obtained using the historical method, which uses 500 real pieces of data and scenarios, respectively.
  • STRESS TEST.- This test is calculated and presented monthly. The intent is to obtain the highest potential losses based on the following: historical variances are used for horizons of one and five days, considering 1,100 data points and, in addition, the stress is presented at five days considering critical scenarios from 2008; that is, the history resulting from October 1, 2008 to the current date. The Risks Committee establishes risk limits for VaR and Stress as a proportion of the net assets of the Fund.
  • BACK TESTING.- Calculated daily. Risk estimates calculated a priori using the Value at Risk model are compared to the results observed (posteriori) for each instrument/market with a confidence level of 95%, valuing whether the set observed in fact does not exceed the VaR by 5% in all of the observations. The results are presented to the Risks Committee on a monthly basis.

 

CREDIT RISK

In this Fund, the credit risk is high, since it invests in debt instruments that are primarily corporate, both domestic and foreign, and state-run production companies, with a minimum rating for instruments subject to investment of within the first three levels of the local scale granted by a rating agency (AAA, AA or A). The counterparty risk is defined as the risk to which the Fund would be exposed as the result of a potential loss generated by default on the obligations contracted with their counterparties in securities transactions or documents in which they have invested. The Operator monitors the counterparty risk to which the Fund is exposed from the time the securities are agreed through the time of liquidation thereof, considering this risk as equal to the maximum expected loss (Stress) with a time interval of the liquidation period plus one.

 

LIQUIDITY RISK

Liquidity risk is defined as the potential loss due to the anticipated or forced sale of assets at unusual discounts to face the Fund’s obligations, or when a position cannot be promptly sold, acquired or covered by establishing an equal contradicting position. The Fund shall be exposed to liquidity risk due to significant and/or unusual sales of its owns shares, generating the need to make advance sales of a large number of shares in a short period of time, so there is a potential risk of having to sell such assets at unusual discounts, negatively affecting the price of the shares of such. A minimum requirement has been determined of 10% in securities that can be easily realized and/or in securities with a term of less than three months. The Fund’s exposure to liquidity risk is moderate, given the securities selection policy and the minimum limits for investment in highly liquid assets.

 

OPERATIONAL RISK

The risks that may arise due to daily operations are controlled as follows: Internal Audit Reviews, the work schedule for which is authorized by the Board of Directors, and maintaining a record of all of the observations, recommendations and levels of compliance. Operating manuals for all relevant areas that provide services to the Operator. Contingency plans to respond to a large number of extraordinary situations.


Prospectus

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Financial Information

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Audited Information

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Key Monthly Investment Information (DICI)

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Monthly Portfolio

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Weekly Portfolio

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II. QUANTITATIVE INFORMATION FROM RISKS AREA

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