UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 8-K

Current Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934


Date of Report (Date of earliest event reported): February 28, 2022


The Mexico Fund, Inc.
(Exact name of registrant as specified in its charter)

Maryland
811-02409
13 306 9854
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)

 6700 Alexander Bell Drive, Suite 200
Columbia, Maryland 21046
(Address of principal executive office) (Zip Code)
 
Registrant’s telephone number, including area code: 
 (202) 261-7941
 
(none)
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

◻ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

◻ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

◻ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

◻ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock
MXF
New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2 of this chapter).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01  Regulation FD Disclosure

Pursuant to Regulation FD Rules 100-103, The Mexico Fund, Inc. (the “Fund”) furnishes the Monthly Summary Report of the Fund’s Investment Adviser.

Item 9.01  Financial Statements and Exhibits

(d)   Exhibits

The following exhibit is filed as part of this report:


         



      

 
SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
  The Mexico Fund, Inc.
  
       
Date:  March 7, 2022
By:
/s/ Douglas P. Dick
  
    Douglas P. Dick
  
    Secretary  
 
 
 





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 Exchanges. 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 $0.18 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
$269.89
Daily Average Number of Shares Traded2
16,675
NAV per share1
$17.99
Outstanding Shares3
15,005,224
Closing price2
$15.26
Expense Ratio (10/31/2021)
1.45%
Discount
 15.18%
Portfolio Turnover (10/31/2021)
18.03%


Performance1
Cumulative
Annualized
1 Month
YTD
1 Year
3 Years
5 Years
10 Years
MXF Market Price
2.28%
-1.86%
20.71%
6.60%
5.24%
1.91%
MXF NAV
3.69%
-0.98%
21.83%
8.17%
5.31%
2.30%
MSCI Mexico Index
4.66%
-0.45%
26.14%
8.13%
4.38%
0.76%
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 February 2022, the Fund repurchased no shares.





Top Ten Holdings (67.68% of Net Assets)
1 América Móvil
14.57%    
     6 Cemex
4.00%
2 Grupo México
9.89%    
     7 Orbia Advance Corporation
3.79%
3 Wal-Mart de México
9.31%    
     8 Alfa
3.72%
4 Grupo Financiero Banorte
8.07%    
     9 Ternium
3.49%
5 Fomento Económico Mexicano
7.47%    
     10 Gruma
3.37%
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 registered negative returns during February 2022. The MSCI World Index and the MSCI Emerging Markets Index decreased 2.7% and 3.1%, respectively, during the month, due to a deteriorated geopolitical environment. On February 24, Russia attacked Ukraine, after gathering troops near its borders during the last months. The U.S. and some allies have imposed severe economic sanctions to Russia, most importantly removing some Russian banks from the SWIFT payment system, preventing them from engaging in international transactions. In addition, the U.S. banned all U.S. transactions with Russia’s central bank. As a result, from February 23 to March 2, 2022, the MSCI Russia Index declined 47.3% and the Russian ruble depreciated 21.6%, while the price of oil increased 20.1% during the same period to $110.6 USD/bbl (measured by West Texas Intermediate). In the United States, the DJIA and the S&P 500 decreased 3.5% and 3.1%, respectively, during February 2022; the interest rate on the 10-year Treasury note increased 5 basis points to 1.83% and the U.S. dollar appreciated 0.2% (measured by the DXY Index4). Notwithstanding the above, the Mexican equity market recorded a strong performance, as the MSCI Mexico Index increased 4.7%, while the Mexican peso appreciated 0.8% to Ps. $20.47, whereas the Fund’s NAV increased 3.7%, backed by solid fourth quarter financial results reported by Mexican issuers. The Fund underperformed its benchmark during the month, but maintains an overperformance during the 3-, 5-, and 10-year periods ended in February 2022.

In local news, Mexico´s Central Bank (“Banxico”) increased its overnight interest rate by 50 basis points, raising it to 6.00%. Official GDP for the fourth quarter of 2021 increased 1.1% on an annual basis, resulting in an expansion of 4.8% during 2021. Mexican-listed companies reported positive financial results for the fourth quarter of 2021, with solid growth and profitability, as sales and Ebitda increased 15.1% and 16.5% versus the fourth quarter of 2020, respectively.
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.


4 DXY Index computes the value of the U.S. dollar relative to a basket of foreign currencies.