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.”

The Board of Directors of the Fund has authorized quarterly distributions of $0.15 per share under the MDP. 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. 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

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.

 

---

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.

During April 2018, global equity markets registered mixed returns. The MSCI Index of Developed Markets increased 1.0%, while the MSCI Index of Emerging Markets decreased 0.6%. The DJIA and the S&P 500 increased 0.2% and 0.3%, respectively, during the month, while the U.S. dollar appreciated 2.1% (measured by the DXY Index⁵). The yield on the U.S. 10-year Treasury note climbed above 3.0% towards the end of April, closing the month at 2.95%, an increase of 21 basis points during the month. NAFTA (North America Free Trade Agreement among Mexico, United States and Canada) re-negotiations continued on track, and the parties involved announced that a preliminary agreement may be reached during May 2018. The MSCI Mexico Index increased 2.2% during the month, despite the 2.8% depreciation of the Mexican peso to Ps. $18.71.

In local news, Mexico´s Central Bank maintained unchanged its overnight interest rate at 7.5%. Moody´s upgraded its outlook on Mexico´s credit rating to stable from negative, while affirming its A3 rating. Mexican-listed companies reported their financial results for the first quarter of 2018, showing overall positive operational results driven by solid domestic consumption, compensated by a lower exchange rate and the related negative effect on income from exports and sales abroad when translated to local currency. Sales and Ebitda increased 4.4% and 5.7%, respectively, while net profits declined 26.3% due to a decrease in gains from currency exchange fluctuations. Lastly, Mexico´s preliminary GDP for the first quarter of 2018 grew at an annual rate of 1.2%

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.

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.