Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - MEXICO FUND INC | mf8k010719.htm |
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 of $0.25 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
|
Total Net Assets (million)1
|
$229.99
|
Daily Average Number of Shares Traded2
|
47,122
|
|
NAV per share1
|
$15.33
|
Outstanding Shares3
|
15,005,224
|
|
Closing price2
|
$13.25
|
Expense Ratio (4/30/2018)
|
1.62%
|
|
Discount
|
13.57%
|
Portfolio Turnover (4/30/2018)
|
31.30%
|
|
Performance1
|
Cumulative
|
Annualized
|
||||
|
1 Month
|
YTD
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
|
|
MXF Market Price
|
4.41%
|
-12.22%
|
-12.22%
|
-3.25%
|
-8.80%
|
7.01%
|
|
MXF NAV
|
3.93%
|
-12.10%
|
-12.10%
|
-3.44%
|
-6.30%
|
6.92%
|
|
EWW NAV4
|
2.16%
|
-16.08%
|
-16.08%
|
-4.83%
|
-7.86%
|
4.09%
|
|
MSCI Mexico Index
|
3.62%
|
-14.94%
|
-14.94%
|
-3.86%
|
-7.18%
|
4.62%
|
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.
1 Source: Impulsora del
Fondo México, S.C. Performance figures take into account reinvestments of distributions.
2 Source: NYSE. Shares
traded figure represents average volume traded on U.S. consolidated markets during the month.
3 During December 2018, the
Fund repurchased no shares.
4 Source: iShares MSCI
Mexico Capped ETF (tracks a Mexico Index produced by MSCI).
|
Top Ten Holdings (61.74% of Net Assets)
|
|||||
|
1 América Móvil
|
14.53%
|
6 Alfa
|
4.91%
|
||
|
2 Grupo Financiero
Banorte
|
8.05%
|
7 Cemex
|
4.41%
|
||
|
3 Fomento Económico
Mexicano
|
6.72%
|
8 Ternium
|
4.36%
|
||
|
4 Grupo México
|
5.91%
|
9 Mexichem
|
4.20%
|
||
|
5 Wal-Mart de México
|
5.53%
|
10 Gméxico
Transportes
|
3.12%
|
||
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
During December 2018, most global equity markets registered negative returns. The MSCI
Indices of Developed and Emerging Markets decreased 7.7% and 2.9%, respectively, during the month. The U.S. Federal Reserve increased its overnight interest rate by 25 basis points to a range of between 2.25% and 2.50%. In the United
States, equity markets decreased sharply with the DJIA and the S&P 500 declining 8.7% and 9.2%, respectively, during the month; the U.S. dollar depreciated 1.1% (measured by the DXY Index1) and the yield on the U.S. 10-year Treasury note also registered a decrease of 30 basis points to 2.68% during December 2018, the lowest month-end level of 2018. The price of oil (measured by
West Texas Intermediate) reached its lowest level of the year and declined 11.1% during the month to $45.4 USD/bbl, despite the agreement between the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC members to
decrease oil production by 1.2 mbpd. Despite the decline in most global equity markets, the MSCI Mexico Index increased 3.6% during December 2018 due to the appreciation of the Mexican peso of 3.6% to $19.65.
In local news, the Mexican government announced its 2019 budget that reflected its previously
stated expectations of maintaining a solid fiscal regime. The 2019 budget includes an increase in the primary surplus (which excludes interest payments) to 1.0% of GDP, higher than the 0.8% of GDP approved for 2018. The budget
announcement generated optimism in the Mexican economy and enhanced the performance of the Mexican peso as indicated above. Separately, Mexico´s Central Bank increased its overnight interest rate by 25 basis points to 8.25%.
During calendar year 2018, the Fund´s NAV outperformed its benchmark and the EWW (the primary ETF tracking the Mexican equity
market) by 284 and 398 basis points, respectively, and has also outperformed both during the last three-, five- and ten-year periods.
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.
