Innovating for you, Growing for Mexico


01Letter from the Chairman

Dear shareholders, clients, and collaborators:

The year 2016 was marked by a large number of relevant events, both locally and internationally. Events the markets were hardly expecting, particularly in the political arena.

Nonetheless, the dynamism observed in economies such as China, the US, and even the European Union was reason enough for most of the international stock markets to show very positive returns.

The S&P 500 ended the year at 2,239 units, showing a yield of 9.5%.

This performance was mainly due to the growth seen in smaller cap companies, which benefited from a lower exposure to the dollar’s strength, and greater exposure to internal consumption dynamics.

In Mexico, 2016 was immersed in a complex economic juncture where the mere possibility of facing a renegotiation of the North America Free Trade Agreement was reason enough for a 16.6% depreciation of the peso vs. the USD, as well as for a significant deterioration of investment expectations and consumer confidence levels. In this context, the Mexican economy linked its fourth consecutive year with a growth rate below potential, averaging a 2.3% advance.

02GBM Profile

As a pure holding company, Corporativo GBM heads GBM, a group devoted to o ering products and services for investment in securities. It has traded on the Mexican Stock Exchange (BMV) since 1992, and its ticker is GBMO.

GBM comprises mainly non-bank financial institutions that provide services for trading on the securities market, and structures designed to o er investors products with various levels of sophistication. Excluding the investment in its subsidiaries, the Company has an investment portfolio comprising various kinds of assets, but mainly funds and other collective investment vehicles that GBM has designed for the public.

Corporativo GBM’s investment portfolio (excluding its subsidiaries) is valued at $9.569billion pesos. It includes 6% of debt market instruments, 4% of private capital instruments (considering the co-investment with our CKDs), and 90% of equity instruments, 57% of which correspond to investments in vehicles managed by the group’s institutions, with a risk exposure equivalent to an average annual VaR of $228 million pesos at a 97.5% rate of confidence.

By yearend 2016, this portfolio’s annual return was 6.15%, and its compound annual return for the last 12 years was 26.15%.

Corporativo GBM holds $4.2 billion pesos in stock certificate issuances with staggered maturities up to 2021, which rating agencies Fitch Ratings Mexico and HR Ratings have rated as AA(mex) and HR AA+, respectively. In 2016, stock certificates worth $1.2 billion pesos were issued, amortizing certificates worth $1.2 billion pesos.

$337,357 mdp

in Assets in Custody

$203,871 mdp

Assets Under Management

$8,909 mdp

Stockholders’ equity

$864 mdp

Net income (loss)

1,500 millones

In Shares Outstanding

$22,500 mdp

Market Capitalization

$4,200 mdp

Total issued in Stock Certificates By Corporativo GBM

03GBM Research

At GBM, we are convinced that fundamental analysis and a focus on value are the pillars to overcome environments with high volatility and uncertainty, such as the ones experienced in 2016. Last year was particularly complicated for global markets, as risk aversion gained strength in investors’ minds—an aversion driven by real concerns about the growth of the overall economy and political uncertainty.

The midst of this uncertainty is when fundamental analysis becomes key in the decision-making process, and our research team continues with its commitment to find value ideas to enrich our clients’ investment process, remaining true to our philosophy. By remaining steadfast in our search for companies with sound balance sheets, competitive advantages in their sector, high cash flow generation, and appealing valuation, we increase our clients’ safety margin, o ering a better mix between risk and return.

Throughout 2016, we overhauled our research effort in Latin America, committed to search for value in the countries where we currently have coverage (Mexico, Chile, and Brazil), and we hope to keep expanding our coverage in the Andean region.

Supported by our fundamental analysis philosophy, we succeeded in getting our Top Picks list to outperform the IPC in terms of returns.

Meanwhile, our list of smaller cap issuers in terms of market cap and marketability (Watchlist) had a similar performance to the Mexican market. In conclusion, during 2016, we were able to confirm the advantages of our research discipline, with a clear focus on value, and greater dynamism in our list of recommendations, obtaining greater returns for our investors.

04GBM Execution

During 2016, we ratified our leadership position in stock trading, with an 11.8% share in the local market, and 10% in the international. When adding these markets, GBM was once again in first place in trading on the Mexican Stock Exchange with 11.3% market share--a 10.12% increase vs. 2015.

We continue to expand our base of national and international institutional clients, including global hedge funds, funds dedicated to emerging markets, and sovereign funds, always supported by the Research department, which provides support to our investment ideas.

05GBM Asset Management

In the asset management segment, we focus our product offer to serve our individual and institutional clients, both in Mexico and abroad.

For this purpose, we have a range of discretional products including investment funds based in Mexico, investment funds based abroad, CKDs, discretional mandates, and portfolios with a wide range of strategies for each investor profile.

In the year, the highlight was the launching in March of fund GBMPICT, a comprehensive absolute return strategy comanaged with Pictet Asset Management, which ended the year with 862 million pesos in assets under management and a 5.05% return in USD terms, calculated from the start of operations on March 9 to yearend 2016. Likewise, we completed the investment period of the GBM Infraestructura CKD, and raised capital for a second infrastructure CKD, GBM Estrategia, with a total value of 10.38 billion pesos, including the co-investment with this vehicle.

The institutional investments department continued to show sound growth in pension plans, such as pension funds, savings funds and savings banks, as well as personal retirement plans, ending the year with 19.351 billion pesos in assets under management. We should note that we have succeeded in consolidating as one of the most important players in private pension plan management in Mexico.

As for foreign institutional clients, we ended the year with 12.54 billion pesos in assets under management from foreign clients in over 9 countries. We have focused on highly sophisticated clients, including sovereign funds pension funds, and insurance companies, among others.





GBM Infrastructure

During 2016, the first infrastructure investment vehicle designed and managed by GBM, issuer of capital development certificates under the capital commitments scheme whose ticker was GBMICK12, followed the strategy of value generation on the investments already in the fund, including the extension of the concession of TECSA and IACMEX, as well as analyzing new opportunities in the energy and communications & transportation subsectors of infrastructure, which resulted in 2 new investments: Chacabal Wind Farm, and the Puebla Poniente Bypass.

As for the investment that the CKD has held since late 2013, together with the Co-investor, in Desarrollos Hidraulicos de Cancun S.A. de C.V., a company with the deed of concession to provide drinking water, sewage, and sanitation services in the Benito Juárez, Puerto Morelos, Isla Mujeres, and Solidaridad municipalities, we continued to exploit the potential of that investment.

In the state of Tamaulipas, we continued the construction of Stages 1 and 2 of the Tres Mesas Wind Farm, which is one of the largest renewable energy projects in Mexico to date, with a capacity of 148.5 MW and 45 wind turbines installed. The energy generated will be acquired by Sigma Alimentos, S.A. de C.V. and other subsidiaries of Alfa S.A.B. de C.V., as well as by subsidiaries of Walmart de Mexico, S.A.B. de C.V., given the long-term energy purchase contracts signed with these parties. At the date of this report, Stages 1 and 2 are in commercial operation.

We continue with the execution of the Siglo XXI highway project, holding, through the consortium with Pinfra and Aldesa, the concession to build, operate, exploit, preserve, and maintain, for 30 years, the Siglo XXI highway, which will connect the state of Puebla to the west part of Morelos, up to the Autopista del Sol highway, thus closing the Gulf-Pacific highway axis.

During the second quarter of 2016, a 75% stake in Eolico Maya I, S.A. de C.V. and Eolico Maya II, S.A. de C.V. was acquired. In March 2016, these companies were awarded contracts for electric energy coverage in the first long-term bidding held by the National Center for Energy Control, for the sale of electric energy and Clean Energy Certificates (CEL for its Spanish acronym) to the Federal Electricity Commission for 15 and 20 years, respectively. Energy and CELs will be generated by the Chacabal I and Chacabal II power stations, jointly comprising a capacity of 60 MW, and the installation of 30 wind turbines in the state of Yucatan, Mexico.

During the second quarter of 2016 we achieved an extension up to May 2021 of the concessions held by subsidiaries TECSA and IACMEX, for the management of infrastructure and sales of the Water System in Mexico City in the Venustiano Carranza, Iztacalco, Benito Juárez, Coyoacan, Milpa Alta, Xochimilco, Tláhuac, and Iztapalapa districts.

During the second quarter of 2016, Concesionaria de Autopistas de Puebla, S.A. de C.V. was established. this company was awarded a 30-year concession to build and operate the 18.4km Via San Martin Texmelucan-Huejotzingo highway, located in the state of Puebla, which represents an alternative route into Puebla from Mexico City.

In 2015, a subordinated loan was awarded to Autopista Naucalpan–Ecatepec, S.A.P.I. de C.V., a subsidiary of ICA, which holds a Contract for Related Services with Public Works and Public works Financed with the Government of the State of Mexico. The Naucalpan-Ecatepec highway is a high-spec highway, located in the north of the Mexico City area. This highway makes it possible to join the east and west of the Mexico City metropolitan area and the State of Mexico. The highway joins the Mexico-Pachuca and Circuito Exterior Mexiquense highways, as well as Gustavo Baz Ave., Calzada Vallejo, Eje Central Lázaro Cárdenas, and Avenida Central.

Desarrollos Hidráulicos de Cancún

Project valued by PWC at 3.65 bn. MXN

Tres Mesas Wind Farm

One of the largest renewable energy projects in Mexico

Siglo XXI Highway

61.8km connecting Puebla with Morelos, up to the Autopista del Sol highway

Chacabal Wind Farm

60 MW wind farm, with long-term contracts for electric energy coverage


51% in commercial water concessions in 8 districts in Mexico City (CDMX), extended until 2021

Puebla Poniente Bypass

18.4 km, alternative access into the city of Puebla

Naucalpan Ecatepec Highway

Subordinated credit for one of the fastest-growing urban thoroughfares

GBM Strategy

The second vehicle for infrastructure and energy investment, designed and managed by GBM, issuer of capital development certificates under the capital commitments scheme and ticker GBMESCK, was placed on September 30, 2016 for 9 billion pesos, plus a co-investment of 1.38 billion pesos. Its focus during 2016 was on analyzing opportunities in the infrastructure subsectors of water, energy, and communications and transportation.

During the fourth quarter, the CKD, together with the Co-investor, acquired an 88.89% stake in Capital Energetico Mexicano, S.A. de C.V. (CEM), a company whose goal is to develop, build, and operate energy generation projects, together with Invenergy and CS Capital, companies specializing in the development and operation of power stations. CEM holds a 32.32% stake in Mexichem Cogeneración Cactus, S.A.P.I. de C.V., a company that is currently developing a 380 MW cogeneration station, and a 20% stake in Mexichem Cogeneración Uno, S.A. de C.V., a company that is currently developing a 390 MW cogeneration station.

GBM Structuring

The trust that issues the capital development certificates under ticker GBMECK is managed by GBM, and is devoted to granting structured credit and financing ended its investment period on August 15, 2015, with the successful performance of eleven investments totaling $1.22 billion pesos, which translates into 94.09% of the issuance’s resources.

The investments were placed in various sectors, such as: tourism, construction, medical services, real estate, and steel.

Most of the investments were corporate loans that have real guarantees (some, highly liquid ones such as shares listed on the BMV), with loan to values from 1.5 to 6.4 times.

Throughout fiscal year 2016, three distributions worth $80 million pesos were paid to holders; this represents 6.12% of the total issuance.

The sum of all the distributions paid by yearend totals $1.03 billion pesos, translating into 79.53% of the total sum of the issuance.

The current portfolio comprises 3 loans (out of 11 that were held at one point), which have generated a weighted average active rate of about 9.52%.

All active credits are current

The issuance matures in august 2018.

06Corporate Finance and Investment Banking

With over 30 years of experience in Investment Banking and Corporate Finance, we offer customized counseling and added value services in various business lines, such as capitals market, debt market, corporate restructuring, and mergers and acquisitions.

Last year, the Brokerage Firm, acting as lead broker, hosted the first public offer of fiduciary stock certificates in Mexico for investments in energy and infrastructure (Fibra E) for one of the main highway concessionaires in the country, PINFRA, through its subsidiary Promotora y Administradora de Carreteras. The o er totaled $11.83 billion pesos. We also participated as lead broker in the subsequent public o ers of HOTEL, a leader in the hotel industry in Mexico, and of IENOVA, a company devoted to energy infrastructure. The latter was worth $30.40 billion pesos.

Moreover, the public tender o er for 2.49% of Consorcio Hogar (HOGAR) was hosted. This company had traded on the stock market since 1997 and, in 2015, approved the cancellation of its registry in the National Securities Register.

In the debt market, as broker agent, the Brokerage House carried out the issuance of stock certificates PAQPCB 16, worth $2.5 billion pesos, which include mainly the collection of tolls on the Atlixco, Apizaco-Huachinango, Via Alixcayotl, and Virreyes-Teziutlan highways.

In short-term issuances, we participated as a broker agent in the first issuance for $100 million pesos of stock certificates for Montepio Luz Saviñon, under a $500 million peso revolving program.

07GBM Digital

Electronic platforms nowadays perform a very important function among our clients, as they focus on providing innovative solutions, with state-of-the-art technology in terms of design and user experience. Moreover, one of the main goals is to maintain good communication with our audiences, educating and strengthening their knowledge in personal finance to foster the Mexican population’s financial inclusion.

At GBM Digital, a department marked by the innovation of financial products, we continue to develop new ideas that will add value for our clients, even as we continue to improve our current product, implementing innovative technology to offer a unique financial solution.

GBMhomebroker seeks to empower Mexican investors, maintaining contact with the community through our social media, Youtube channel, blog, and exclusive content, such as ebooks, webinars, and courses. These efforts drive the brand’s scope, impacting new followers and potential clients.

As for piggo, the goal-oriented savings and investment platform, it has proven to have a place in the market for its innovation, practicality, and simplicity, with which it introduces people into the world of investment without the need to be an expert. In addition to having a website, piggo has IOS and Android apps, which are a sample of the innovation that the product can offer its clients, creating a unique experience.

Last, the investment fund platform, GBMfondos, was launched to benefit our current clients, and to benefit our new investors to open their contract digitally, providing an excellent user experience, and access to our investment funds.


7.2 million visits

To our websites

Over +500 thousands followers

on social media

08Social Responsibility

1. Student Financial Aid Program:

We assist children and teens with a good academic performance to continue their studies as, otherwise, they would be forced to drop out of school, unable to meet the expenses that their education implies.

2. Medical Assistance Program:

We support the families of patients with low resources whose financial capacity to meet medical, hospital, surgical, therapeutic, or other expenses related to healh issues has been exceeded.

3. Parent School and Family Counseling Program:

Through parent education, we seek to strengthen family dynamics, thus preventing the educational development of the students who receive aids from being a ected by poorly handled family issues.

4. Granting of Institutional Donations:

We analyze and contribute to the activities of other authorized tax-exempt organizations in social welfare projects, social, and cultural programs that favor community development, and channel resources when faced with natural disasters.

5. GBM por una Sonrisa:

A program with the participation of GBM’s employees and collaborators who, since 1999, devote efforts to helping children up to 15 years old with economic needs for education, healthcare, rescue, and shelter, and generally seeking to improve their quality of life.

Fundación GBM, I.A.P. awarded aids in 2016 totaling $6,892,539, comprised as follows:


Student Financial Aid Program


Medical Assistance Program


Parent School and Family Counseling Program


Institutional Donations Program


GBM por una Sonrisa Program

09Senior Management


Alberto Rodríguez Govela

Director of International Sales

Alberto Vargas Magaña

Director of Infrastructure and Information Technology

Artemio Guerrero Díaz

Director of Information Technology

Carlos Lerma Vargas

Director of National Sales

Diego Ramos González de Castilla

Chairman of the Board and Chief Executive Officer

Enrique Rojas Blásquez

Deputy Managing Director

Fernando Castro Tapia

Director of Debt Funds

Fernando Ramos González de Castilla

Cofounder of GBM

Gerardo Madrazo Gómez

Deputy Managing Director of Money Market

Ingrid Castillo Rodríguez

Director of Research and Valuation

Jaime Enríquez Martínez de Velasco

Director of Risk Management

    José Antonio Salazar Guevara

    Deputy Managing Director

    Javier Martínez Morodo

    Director of GBM Digital and Managing Director of GBM Administradora de Activos

    José Luis Arteaga Mena

    Director of Money Desk

    José Manuel Fierro Von Mohr

    Director of Equity Funds

    Juan Manuel Duclaud Cuervo

    Director of Institutional Sales

    Luis de Garay Russ

    Director of Investment Banking and Corporate Finance

    Luis de la Cuesta Girón

    Director of Institutional Trading

    Luis Dosal Blanco

    Managing Director of Fomenta GBM

    Natalia Saldate Durón

    Director of Legal and of Internal Control

    Patricio de la Vega Flores

    Director of Management

    Raymundo Leal Vargas

    Deputy Managing Director of Asset Management

    Ricardo Arteaga Botello

    Director of Treasury and Securities

    Rubén Velázquez Trujillo

    Director de Contabilidad

    Santiago Ortiz Monasterio Lebrija

    Managing Director of GBM Infraestructura and GBM Estrategia

    Sebastián Rey Ortega

    Director of Capitals Trading

10Corporate government

Corporativo GBM, S.A.B. de C.V.

Diego Ramos González de Castilla


Jonatan Graham Canedo


Natalia Saldate Durón

Assistant Secretary

Members of the Management Board

Jorge Rojas Mota Velasco Regular Member

Alonso de Garay Gutiérrez Regular Member

Diego Ramos González de Castilla Regular Member

Julio Manuel Rivera de los Reyes Regular Member
(Independent Board Member)

Javier Sunderland Guerrero Regular Member
(Independent Board Member)

Enrique Rojas Blásquez Alternate member

Fernando Ramos González de Castilla Alternate member

Jose Antonio Salazar Guevara Alternate member

Armando García LaraAlternate member
(Independent Board Member)

Miguel Ortiz Aquilar Alternate member
(Independent Board Member)

Private Capital Investment Committee

Members GBM

Fernando Ramos González De Castilla

Cofounder of GBM

Diego Ramos González De Castilla

Chairman of the Board and Chief Executive O cer of GBM

Enrique Rojas Blásquez

Deputy Managing Director GBM

Santiago Ortiz Monasterio Lebrija

Managing Director of GBM Infraestructura

Independent Members

Jesús Federico Reyes-Heroles González Garza

CEO / StructurA

Rolando Vega Sáenz

Managing Director / Seguros Atlas

Rodrigo Franco Hernández

DDeputy Managing Director / Infra

Pablo de la Peza Berríos

Independent Consultant

Dionisio Garza Medina

Chairman / Grupo Alfa

César Herrera Toledo

Partner / Einsamex

Eduardo Pérez Mota

Partner / AGON Economía y Derecho


Jonatan Graham Canedo

Managing Director / Graham Abogados

Technical Committee of the GBM Trust Found Infrastructure

GBM Members

Fernando Ramos González De Castilla

Cofounder of GBM

Enrique Rojas Blásquez

Deputy Managing Director GBM

Enrique Rojas Blásquez

Deputy Managing Director GBM

Santiago Ortiz Monasterio Lebrija

Managing Director of GBM Infraestructura

Independent Members

Eduardo Pérez Motta

Partner / AGON Economía y Derecho

Cesar Herrera Toledo

Consultant / Empresa de Estudios Económicos y de Ingeniería

Jesús Federico Reyes-Heroles González Garza

CEO / StructurA

Pablo de la Peza Berríos

Independent Consultant

Pension Funds

Aniceto Huertas Corcelles

Director of Fundamental Risks / Banamex

Agustín Vázquez Bustos

Head of Alternative Investments Analysis / SURA

Juan Enrique Trueba Calleja

Deputy Director of Investment / Principal

Secretary and Member

Jonatan Graham Canedo

Managing Director / Graham Abogados

Technical Committee of the GBM Estrategia Trust Fund

GBM Members

Fernando Ramos González De Castilla

Cofounder of GBM

Diego Ramos González De Castilla

Managing Director of GBM

Enrique Rojas Blásquez

Deputy Managing Director GBM

Santiago Ortiz Monasterio Lebrija

Managing Director of GBM Infraestructura

Independent Members

Eduardo Pérez Motta

Partner / AGON Economía y Derecho

Cesar Herrera Toledo

Consultant/ Empresa de Estudios Económicos y de Ingeniería

Jesús Federico Reyes-Heroles González Garza

CEO / StructurA

Pablo de la Peza Berríos

Independent Consultant

Esteban Figueroa Palacios

Director of Infrastructure and Investment Analysis / AFH Consultores y Asociados

Pension Funds

Aniceto Huertas Corcelles

Director of Fundamental Risks / Banamex

Antonio de Jesus Sibaja Luna

CEO / Invercap

Aurora Fadile Herrera Cuevas

Head of Alternative Investments Analysis / Principal

Jose Maria de la Torre Verea

CEO / Pensionissste

Secretary and Member

Jonatan Graham Canedo

Managing Director / Graham Abogados

12Investor Relations

Ticker : GBM O

T: (55) 5480 5860

Corporate Offices

Av. Insurgentes Sur 1605, Piso 31
Colonia San José Insurgentes
Ciudad de México

The present Annual Report 2016 contains statements that constitute or may constitute forecasts or value judgements on future events whose realization is uncertain. Therefore, they may refer to various risks and uncertainties, including the economic conditions prevailing in Mexico or other countries, as well as fluctuations in the value of the Mexican peso against other currencies, interest rates, and other factors whose materialization or lack thereof could directly or indirectly a ect the company’s development or influence the valuation, market prices, or liquidity of the securities issued. No appreciation contained in the present document is, or attempts to be a proposal to buy, sell or exchange securities, or a suggestion to maintain investments therein. The use of registered trademarks, logos, or photographic materials in this document is exclusively for the purpose of illustration, and does not constitute, nor should it be construed as a transgression on the intellectual property rights of their holders. GBM is not a financial group under the terms of the Law to Regulate Financial Groups.