Attached files
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| 8-K - FORM 8-K - MEXICO FUND INC | mexico8k083116.htm |
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The Mexico Fund, Inc.
 Monthly Summary Report | August 31, 2016
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Description
The Mexico Fund, Inc. (the “Fund”) is a non-diversified closed-end management investment company with the investment objective of long-term capital appreciation through investments in securities, primarily equity, listed on the Mexican Stock Exchange. The Fund provides a vehicle to investors who wish to invest in Mexican companies through a managed non-diversified portfolio as part of their overall investment program. The Fund’s shares are listed and traded on the New York Stock Exchange (“NYSE”) under the symbol “MXF.”
Managed Distribution Plan (“MDP”)
The Board of Directors of the Fund has authorized quarterly distributions under the MDP at an annual rate of 6% of the Fund’s net asset value (“NAV”) per share recorded on the last business day of the previous calendar year. With each distribution, the Fund will issue a notice to stockholders and an accompanying press release, which will provide detailed information regarding the amount and composition of the distribution and other information required by the Fund’s MDP exemptive order. The Fund’s Board of Directors may amend or terminate the MDP at any time without prior notice to stockholders; however, at this time, there are no reasonably foreseeable circumstances that might cause the termination of the MDP. You should not draw any conclusions about the Fund’s investment performance from the amount of distributions or from the terms of the Fund’s MDP.
Highlights
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Total Net Assets (million)1
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$281.87
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Daily Average Number of Shares Traded2
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19,534
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NAV per share1
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$18.74
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Outstanding Shares3
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15,038,268
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Closing price4
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$16.56
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Expense Ratio (04/30/2016)
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1.88%
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Premium (Discount)
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-11.63%
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Portfolio Turnover (04/30/2016)
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7.28%
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Performance5
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Cumulative
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Annualized
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1 Month
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YTD
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1 Year
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3 Years
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5 Years
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10 Years
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Market Price
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0.55%
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2.97%
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-0.20%
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-7.12%
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1.11%
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5.13%
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NAV per share
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1.90%
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2.28%
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-0.03%
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-3.58%
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1.56%
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4.42%
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MSCI Mexico Index
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1.95%
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2.23%
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-2.10%
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-3.66%
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-0.92%
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3.71%
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Bolsa IPC Index
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1.97%
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2.57%
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-1.14%
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-3.33%
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-1.05%
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4.56%
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These figures represent past performance. Past performance does not guarantee future results. The Fund's investment return and principal value will fluctuate so that an investor's shares, at the time of sale, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted above.
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1 Source: Impulsora del Fondo México, S.C. (“Impulsora”).
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2 Source: NYSE. Figure represents average volume traded on all U.S. consolidated markets during the month.
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3 During August 2016, the Fund repurchased no shares.
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4 Source: NYSE.
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5 Source: Impulsora. All figures take into account reinvestment of distributions.
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www.themexicofund.com
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The Mexico Fund, Inc.
Monthly Summary Report | August 31, 2016
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Top Ten Holdings (59.73% of Net Assets)
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1 Fomento Económico Mexicano
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8.78%
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6 Alfa
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4.85%
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2 Cemex
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8.38%
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7 Grupo Aeroportuario del Centro Norte
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4.36%
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3 América Móvil
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8.29%
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8 Grupo México
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4.00%
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4 Wal-Mart de México
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7.70%
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9 Kimberly-Clark de México
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4.00%
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5 Grupo Financiero Banorte
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6.21%
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10 Grupo Financiero Inbursa
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3.16%
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Holdings are subject to change and are provided for informational purposes only and should not be deemed as a recommendation to buy or sell the securities shown.
Fund Manager´s Comments
Global equity markets were mixed during August 2016. In the United States, investors are waiting for the Federal Reserve meeting to be held on September 20th and 21st, at which some analysts are expecting an increase in the overnight interest rate. Certain commodity prices adjusted during the month, in particular the value of gold and silver decreased 3.1% and 8.3%, respectively, but maintain a positive performance during 2016 of 23.4% and 34.7%, respectively. Oil prices recovered to $44.7 USD/bbl (measured by West Texas Intermediate), increasing 5.6% during August 2016, accumulating an increase of 4.3% during the year. The DJIA and the S&P 500 decreased slightly by 0.2% and 0.1%, respectively, during the month; the yield on the U.S. 10-year Treasury note increased 13 basis points to 1.58% and the U.S. dollar appreciated 0.5% (measured by the DXY Index6). The MSCI Mexico Index increased 1.9% during August 2016 and the Mexican peso depreciated 0.2% to $18.78.
In local news, Mexico´s Central Bank maintained the overnight interest rate unchanged at 4.25%. The Ministry of Finance announced that it completed its oil hedging program for 2017 at a total price of $42 USD/bbl. Mexico´s official GDP for the second quarter of 2016 grew at an annual rate of 2.5%. The Ministry of Finance estimates that GDP growth for 2016 will be in the range of 2.0% to 2.6%, while the public deficit is now expected to be 3.0% of GDP (down from previous expectations of 3.5%).
The information presented in this report has been derived from the sources indicated. Neither The Mexico Fund, Inc. nor its Adviser, Impulsora del Fondo México, S.C., has independently verified or confirmed the information presented herein.
Important Risk Disclosure
All performance shown is historical. Closed-end funds are traded on the secondary market through one of the stock exchanges. Shares of closed-end funds may trade above (premium) or below (discount) the NAV of the fund’s portfolio. The NAV is the value of an entity’s assets less the value of its liabilities. The Market Price is the current price at which an asset can be bought or sold. There is no assurance that the Fund will achieve its investment objective.
An investment in the Fund entails special risk considerations, including among others the risks of foreign investments, Mexican investments, market illiquidity and volatility, market corrections, risks associated with the Mexican economy, political factors and security, currency exchange rate fluctuations, NAV discount risk, foreign custody risk, dollar denominated investments risk and risks associated with the concentration of the Mexican equity market. Investors should consider their investment goals, time horizons and risk tolerance before investing in the Fund. An investment in the Fund is not appropriate for all investors, and the Fund is not intended to be a complete investment program. Investors should carefully review and consider the Fund's investment objective, risks, charges and expenses before investing.
6 DXY Index computes the value of the U.S. dollar relative to a basket of foreign currencies.
www.themexicofund.com